The external environment of indirect impacts include. Environmental factors of direct impact
Indirect environmental factors or the general external environment usually do not affect the organization as noticeably as direct environmental factors. However, management needs to take them into account. The indirect environment is usually more complex than the direct environment. Therefore, when studying it, they usually rely primarily on forecasts.
Environmental factors of indirect impact include:
1) technology;
2) the state of the economic environment;
3) sociocultural factors;
4) legislative and political factors;
5) international changes.
Let's consider the possible directions of influence on the enterprise of each of the above factors.
1) Technology is a set of means, processes, operations, with the help of which elements entering into production are transformed into outgoing ones.
Technological change includes scientific and technical innovations in an individual industry, as well as in society as a whole. Technology is both an intrinsic variable and an extrinsic factor of great importance. As an external factor, it reflects the level of scientific and technological development affecting the organization, for example, in the fields of automation, informatization, etc.
Economic changes reflect the general economic situation in the country or region in which the company operates. Economic factors are the most significant, since the current and projected state of the economy can negatively affect the strategic goals of the organization. Indicators such as the inflation rate, the stability of the national currency, the international balance of payments, the tax rate, the purchasing power of the population, the dynamics of GNP, GDP, the unemployment rate, interest rates, as well as the main trends in the structure of industries and organizational forms of management, should be constantly diagnosed and evaluated. ...
Management should be able to assess how general changes in the state of the economy will affect the operations of the organization. The state of the global economy affects the cost of all inputs and the ability of consumers to buy certain goods and services.
It is important to understand that a particular change in the state of the economy can have a positive impact on some organizations and negative on others.
2) The activities of the enterprise take place in the community. In the course of this activity, the company establishes relationships with various elements structure of society. This determines the influence on the enterprise of factors of the social and cultural environment. The sociocultural factors of the macroenvironment include demographic characteristics, norms, customs and life values of the country in which the organization operates. Sociocultural factors affect the formation of population demand, labor relations, the level wages, on working conditions, etc.
Primarily considered demographic situation, which takes into account the geographical distribution and density of the population, gender and age structure, social stratification of society, national homogeneity, the level of education of the population, as well as the level of income.
Factors of the system of social norms have a great influence on the activities of firms: social behavior and cultural environment. These factors include social values and accepted principles of behavior (for example, attitude to work, spending free time), social expectations. Important issues at present, there is a prevailing propensity for entrepreneurship in society, the role of women and ethnic minorities in society, changes in the social attitudes of managers, and a movement to protect the interests of consumers.
Social and organizational structures play a special role - parties, trade unions, press, consumer associations, youth organizations.
3) The legislative-political factor is based on federal and local legislative acts, as well as political actions that are aimed at establishing control over the activities of organizations. The political component of the external environment must be studied first of all in order to have a clear idea of the intentions of the state authorities in relation to the development of society and the means by which the state intends to implement its policy.
Certain aspects of the political environment are of particular importance to the leaders of the organization. One of them is the sentiment of the administration, legislatures and courts in relation to business. Closely linked to sociocultural trends, in a democratic society, these sentiments affect government actions such as taxing corporation income, establishing tax breaks or preferential trade duties, requirements for recruitment and promotion of ethnic minorities, consumer protection legislation, price and wage controls. boards.
The factor of political stability is of great importance for companies conducting operations or having markets in other countries. National conflicts, the activities of terrorist organizations or unstable political regimes are conditions that impede the development of normal activities. They increase property, operational and financial risks.
4) International changes in the external environment mean events taking place outside the country of origin of the company and opportunities for the development of the company's business in other countries. New competitors, buyers and suppliers emerge from the international environment. It also shapes new technological and social trends. The globalization process now covers everything more countries... Therefore, even firms that focus only on the domestic market are forced to think on an international scale, assessing the potential and threats of the external international environment.
Summing up, we can say that factors of indirect significance can have varying degrees influence on the organization, associated, first of all, with the specifics of the company's activities, its market share, interaction with foreign partners, the degree of development of the information technology base and the state of the economy as a whole.
Introduction
The success of an organization is critically dependent on forces external to the organization and operating in the global external environment. Researchers in the early schools of government paid little attention to factors outside the organization. They focused primarily on those aspects that were supposed to ensure the successful functioning of the organization. So, the school of scientific management focused mainly on the tasks and technology of management, the school of administrative management - on creating a structure that ensures the achievement of the goals of the organization, the school of human relations - on people in the organization. In a sense, each school did the right thing by focusing on internal issues, as these were relatively more important to the effectiveness and survival of the organization. However, modern organizations have to adapt to changes in the external environment and accordingly implement changes within themselves. ,.
In management thought, the idea of the importance of the external environment and the need to take into account forces external to the organization appeared in the late 50s. This became one of the most important contributions of the systems approach to the science of management, since it emphasized the need for the leader to view the organization as a whole, consisting of interconnected parts, in turn connected by links with the outside world. The situational approach made it possible to expand the theory of systems by developing a concept according to which the most appropriate method in a given situation is determined by specific internal and external factors that characterize the organization and influence it accordingly.
Today's changes in the outside world have forced to pay even more attention to the external environment. An organization as an open system depends on the outside world for the supply of resources, energy, personnel, and consumers. Since the survival of the organization depends on leadership, the manager must be able to identify the significant factors in the environment that will affect his organization. He should also suggest suitable ways response to external influences.
The first problem when considering an organization as open system is the definition of the external environment. Consideration of the external environment should be limited only to those aspects on which the success of the organization depends decisively.
Concepts and basic elements of the external environment of the organization
The external environment is an environment that encompasses a large number of different factors that can, in one way or another, affect the functioning, both in the current period and in the future.
The external environment of an organization includes such elements as customers, competitors, government agencies, suppliers, financial institutions, sources of labor, which are significant in relation to the operations of the organization.
The external environment is characterized by the following characteristics:
1) Factor interconnection is the level of strength with which a change in one factor affects other factors (example: a change in the price of oil leads to a change in the price of gasoline and, consequently, on transportation costs of all organizations. This, in turn, leads to an increase in prices for food products, which means - to a decrease in the standard of living of the population and its purchasing power;
2) The complexity of the external environment is the number of factors that the organization must respond to (for the purposes of its survival), as well as the level of variability of each of these factors;
The complexity of the external environment refers to the number of factors that an organization must respond to, as well as the level of variability of each factor. If an organization is under pressure from government regulations, several interest groups of influence, numerous competitors and accelerated technological change, it can be argued that this organization is in a more complex environment than, for example, an organization concerned about the actions of only a few suppliers, in the absence of political "lobbies" and slow technology change.
3) The mobility of the environment is the rate at which changes occur in the environment. The greatest mobility of the external environment is observed in the pharmaceutical, chemical and electronic industries. And also in industries related to the production of computers, telecommunications and space technology... Environmental factors are slowly changing in the confectionery, furniture industries, as well as in the production of containers, packaging, and canned food;
4) Uncertainty of the external environment - the relative amount of information about the environment and confidence in its accuracy (example: political forecast, forecast of the dollar exchange rate).
The main elements of the direct impact of the external environment of the organization
The environment of direct influence of the external environment is the immediate environment of the organization, it forms such environmental subjects that directly affect the activities of a particular organization.
When considering the impact on the organization of the external environment, it is important to understand that the characteristics of the environment are different, but at the same time are related to its factors. The characteristics of interconnectedness, complexity, mobility and uncertainty of the external environment describe factors of both direct and indirect impact. This relationship will become clearer when considering the main factors in the environment of direct influence: suppliers, laws and government agencies, consumers and competitors.
The elements of the direct impact of the external environment of the organization include:
1) Suppliers supply materials, equipment, energy, capital and labor. Suppliers are a very powerful factor. The quality of the suppliers (composite indicator) determines the viability of many organizations;
2) Laws and government agencies. Influence the organization, as each organization has a specific legal status being solely owned by a company, corporation or non-profit association;
The activities of an organization are subject to many legal restrictions that are established by the state through laws: it has a certain status - OJSC, State Unitary Enterprise, LLC, CJSC, PE and much more, it operates in accordance with tax legislation. As much as the organization does not relate to the legislation, it must adhere to the laws. The state of legislation is often characterized not only by its complexity, but also by fluidity, sometimes by uncertainty and contradiction. Among other things, the organization must fulfill not only federal laws, but also the requirements of various state bodies - the State Property Committee, Gosstandart, Sanitary and Epidemiological Supervision, Pension Fund and many others. The activities of the organization are additionally complicated by the decrees of local government bodies, the number of which is constantly multiplying. They also noticeably influence the activities of the organization through the licensing of certain types of activities, giving permission to choose a location for an office, for a store, for a hotel, setting tariffs for the telephone, electricity and much more. ,
3) Consumers. The existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs;
According to many management professionals, the only true purpose of a business is to create a consumer.
The firm exists and all the more flourishes as long as there is a consumer, as long as it satisfies his needs. This statement is true not only for business. The main goal of the state is to provide services to its citizens to ensure territorial integrity, to ensure their rights and freedoms, and much more. Unfortunately, the fact that citizens are consumers and deserve to be treated appropriately is sometimes not obvious in everyday encounters with the state bureaucracy. However, during electoral periods, the use of advertisements and face-to-face meetings with voters serves as a clear indication that candidates for future office holders view citizens as consumers of government services.
4) Competitors. This is one of the external factors, the influence of which cannot be disputed. The management of each organization clearly understands that if you do not meet the needs of consumers as effectively as competitors do, then you will not last long in the market for goods or services. Sometimes it is not consumers, but competitors (the quality of their products and their costs of their production) who determine which products of activity the organization will be able to sell and at what price. It should be understood that consumers are not the only competition between organizations. They are fighting for influence on all factors of the external environment - labor resources, materials, capital, for the right to use new technologies.
The direct impact environment is also called the direct business environment of the organization or the task environment. As we have already indicated above, it includes:
Suppliers of material resources, equipment, energy, capital and labor;
State bodies and laws;
Consumers (individuals and companies, government agencies)
Competitors - persons, groups of persons, firms, enterprises, competing in achieving identical goals, striving to possess the same resources, benefits, to occupy a position in the market;
Rice. 1. The scheme of external relations of the organization with the factors of the microenvironment.
The main elements of the indirect impact of the external environment of the organization
Environmental factors of the indirect impact of the external environment of the organization usually do not affect the activities of organizations as noticeably as the external environmental factors of direct impact. However, the management of organizations must take them into account.
The indirect environment is usually more complex than the direct environment. When predicting its impact on the organization, management usually does not have reliable information about the direction and absolute values environmental factors (the dollar rate, legally established minimum wage, lending interest rate and much more), so often when making strategic decisions for the organization, it is forced to rely only on its intuition. It should be borne in mind that the organization cannot have a direct impact on changes in environmental factors of indirect impact. Since among them are technologies (in a broad sense, as a state of scientific and technological progress), the state of the economy, socio-cultural and political factors, relations with the local population, and the international environment.
The elements of the indirect impact of the organization's external environment include:
1) Technology (as a state of scientific and technological progress) as an external factor reflects the level of scientific and technological development that affects the organization. Technology as an internal variable and external factor of great importance to the organization;
Technological innovations affect the efficiency with which a product or service can be produced and sold, the rate at which products become obsolete, how information can be collected, stored and distributed, and what kind of new products and services consumers expect from a given organization. ...
The speed of technology change is constantly increasing. Computer, laser, microwave technologies, as well as robotics, satellite communications, nuclear energy, genetic engineering and much more have a fundamental impact on the activities of many organizations.
2) The state of the economy. The manager should also be able to assess how general changes in the state of the economy will affect the organization's operations, since it can strongly affect the organization's ability to obtain capital for its needs;
The state of the world economy affects, as a rule, the cost of raw materials. The state of the national economy determines the solvency of the population, the price of loans and much more.
A particular state of the economy can have a positive impact on some, and a negative impact on other organizations. Organizations doing business in many countries consider the state of the economy to be a particularly difficult and important factor in the external environment.
3) Socio-cultural factors. Any organization operates in at least one cultural environment. Therefore, the socio-cultural factors of this environment, including attitudes, life values, national traditions of the population, independent media and much more, affect the organization directly;
Examples of socio-cultural influences on business practices:
In the United States, an ethical business is a business without bribes, without favorites, without using rumors to defame competitors;
In many countries, there is still a stereotype that discriminates against women when hiring them; in career advancements where women are risk-averse and incompetent as leaders;
In the production of clothing and footwear, many organizations use the ambition of certain strata of the population who are ready to pay more for the products of prestigious firms - it seems to them that this contributes to an increase in their weight in society;
The perceptions of the bulk of the population about "cultural services" affects the operation of shops, cafes and restaurants. To be successful, organizations must be able to anticipate changing societal expectations and serve their customers more effectively than competitors.
4) Political factors - the mood of the administration, legislatures and courts in relation to business. Sentiment influences government actions such as taxing corporate income, establishing tax breaks or preferential trade duties, compulsory certifications, trends in price-to-wage ratios, and more;
For companies with operations or markets in many countries, political stability is especially important.
5) Relations with the local population. The local community is of overriding importance for the organization. In almost every community there are certain laws and attitudes in relation to business that determine where the activities of a particular organization can be deployed;
6) International environment;
While environmental factors in one way or another affect all organizations, the environment of organizations operating at the international level is characterized by increased complexity. This is due to the unique set of factors that characterize each country. Economy, culture, quantity and quality of labor and material resources, legislation, state structure, political stability, level of technological development vary from country to country. All this makes it especially difficult to accept management decisions in such an organization.
Fig. 2. External environment
A volatile external environment is an area of constant concern for organizations. The analysis of the market environment includes aspects that have a direct impact on the success or failure of an organization. These aspects include changing demographic conditions, life cycles different products or services, ease of market penetration, income distribution and the level of competition in the industry. ,,.
Factors and subjects of the external environment, and their influence on the work of the organization
When considering the external environment for an organization, it is important to understand that the characteristics of the environment are different, but at the same time are related to its factors. The characteristics of interconnectedness, complexity, mobility and uncertainty describe factors of both direct and indirect impact.
The classification of environmental factors due to their diversity is different and can be based on different principles... These include such as: suppliers, materials, capital, labor resources, laws and government agencies, consumers, competitors, technology, the state of the economy, socio-cultural, political factors and relations with the local population.
1) Suppliers;
From a systems perspective, organization is a mechanism for transforming inputs and outputs. The main types of inputs are materials, equipment, energy, capital, and labor. The relationship between an organization and a network of suppliers providing input of specified resources is one of the most striking examples of the direct impact of the environment on the organization and the success of the organization. Obtaining resources from other countries can be more profitable in terms of prices, quality or quantity, but at the same time it is more dangerous due to the strengthening of such factors of fluidity of the environment as fluctuations in exchange rates or political instability. ,.
2) Materials;
Some organizations depend on a continuous flow of materials. Examples: engineering firms; companies distributing goods (distributors); the shops retail... Failure to ensure supplies in the required volumes can create great difficulties for such organizations.
3) Capital;
For growth and prosperity, a firm needs not only suppliers of materials, but also capital. There are several such potential investors: banks, programs of federal agencies for the provision of loans, shareholders and individuals who accept promissory notes of a company or buy its bonds. As a rule, the better the organization is doing, the higher its ability to negotiate with suppliers on favorable terms, and get the desired exchange of funds. Obtaining the necessary funds ensures stable operation of the company.
4) Labor resources;
Adequate provision of a workforce with the necessary specialties and qualifications is necessary for the implementation of tasks related to the achievement of the set goals, that is, for the effectiveness of the organization as such. Without people able to efficiently use complex technology, capital and materials, all of the above is of little use. The development of a number of industries is currently constrained by the lack of the necessary specialists. Practically every sector of the computer industry is an example, and this is especially true for firms that need highly skilled technicians, experienced programmers and system designers.
5) Laws and government agencies;
Each organization has a certain legal status, being the sole owner, company, corporation or non-profit corporation, and this determines how the organization can conduct its business and what taxes it must pay.
Organizations are required to comply not only with federal and local laws, but also with the requirements of government regulatory agencies. These bodies ensure the enforcement of laws in their respective areas of their competence, as well as introduce their own requirements, often also having the force of law. Each type of activity is regulated by certain authorities.
The uncertainty of today's legal framework stems from the fact that the requirements of some institutions conflict with the requirements of others, and at the same time, behind each is the authority of the federal government to enforce such requirements.
Further complicating matters are the regulatory decisions of local authorities, the number of which is also multiplying. Nearly all local communities require businesses to acquire licenses, restrict where they can do business, have taxes, and when it comes to energy, local telephone systems and insurance, they set prices. Some local laws modify or strengthen federal regulations.
6) Consumers;
Many take the view of renowned management expert Peter F. Drucker that the real purpose of a business is to create a customer. This means the following: the very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs.
Studying the consumer, the firm realizes for itself how strong its position is in relation to it in the bargaining process.
Consumers, deciding what goods and services are desirable for them and at what price, determine for the organization almost everything related to the results of its activities. Thus, the need to meet the needs of customers affects the interaction of the organization with suppliers of materials and labor resources. The impact of consumers on internal variables is often significant.
7) Competitors;
Competitors are an external factor, the influence of which cannot be disputed.
The study of competitors, that is, those with whom the organization has to fight for the resources that it seeks to obtain from the external environment in order to ensure its existence, occupies a special and very important place in management. This study is aimed at identifying the strengths and weaknesses of competitors and on the basis of this to build your strategy for competitive struggle. ,
The competitive environment is not only formed internally by industry competitors that manufacture similar products and advertise them in the same market. The subjects of the competitive environment are also those firms that produce a substitute product. In addition to them, the competitive environment of the organization is significantly influenced by its buyers and suppliers, who, having the power to bargain, can significantly weaken the organization's position on the competitive field.
Many firms do not pay due attention to the possible threat from the "aliens" and therefore lose in the competitive struggle to the newcomers to their market.
It is important to understand that consumers are not the only competition between organizations. The latter can also compete for labor, materials, capital and the right to use certain technologies of innovation. The reaction to competition depends on such internal factors, as working conditions, remuneration and the nature of the relationship between managers and subordinates.
8) Technology;
The analysis of the technological component allows you to see in a timely manner the opportunities that the development of science and technology opens up for the production of new products, for the improvement of manufactured products and for the modernization of the technology for the manufacture and sale of products. Advances in science and technology bring tremendous opportunities and threats to the firm. Many organizations fail to see the new perspectives that are opening up because the technical capacity for fundamental change is predominantly created outside of the industry in which they operate. Late in modernization, they lose their market share, which can lead to extremely negative consequences for them. Technology is both an intrinsic variable and an extrinsic factor of great importance. Technological innovation affects the efficiency with which products can be manufactured and sold, the speed of an obsolete product, how information can be collected, stored and distributed, and the kinds of services and new products that consumers expect from an organization.
The rate of technology change in recent decades is very high. One of the reasons for this phenomenon is that in our time there are more scientists living on earth than there were in the world before. Some recent major technological innovations that deeply affected organizations and society are computer, nuclear, microwave, semiconductor technology, integrated communications, robotics, satellite communications, nuclear power, synthetic fuels and food, genetic engineering. ,
It is obvious that organizations dealing directly with high-level technology, knowledge-intensive enterprises, must be able to quickly respond to new developments and propose innovations themselves. However, now, in order to remain competitive, all organizations are forced to keep pace, at least with those developments on which the effectiveness of their activities depends.
9) The state of the economy;
Management should also be able to assess how general changes in the state of the economy will affect the operations of the organization. The state of the economy affects the cost of all inputs and the ability of consumers to buy certain goods and services.
The state of the economy can greatly affect the ability of an organization to obtain capital for its needs. This is mainly due to the fact that the federal government often tries to mitigate the effects of a worsening economic environment by regulating taxes, the money supply, and the interest rate set by the main state-owned bank. If this bank tightens the conditions for obtaining a loan and increases interest rates, commercial banks must do the same so as not to be out of the game. As a result, it becomes more difficult to obtain loans, and they cost the organization more. Likewise, tax cuts increase the mass of money that people can spend on non-essentials and thus help boost business.
It is important to understand that a particular change in the state of the economy can have a positive impact on some and negative on other organizations.
10) Sociocultural factors;
Any organization operates in at least one cultural environment. Therefore, socio-cultural factors, among which attitudes, life values and traditions prevail, affect the organization. Giving a bribe in order to obtain a lucrative contract or political gain, favoritism instead of maintaining competence, spreading rumors that defame competitors are considered unethical and immoral actions, even when they cannot be considered as essentially illegal.
Sociocultural factors also affect the products or services that result from a company's operations. A good example serves as the production of clothing. People are often willing to pay for a dress item bearing the name of a prestigious fashion designer, because they feel it gives them additional weight in society.
The way organizations do their business depends on social factors. Consumers' perceptions of quality service affect the day-to-day practices of retail stores and restaurants.
11) Political factors;
Certain aspects of the political environment are of particular importance to leaders. One is the mood of the administration, legislatures and courts regarding business. Closely tied to socio-cultural trends, in a democratic society, these sentiments affect government actions such as taxing corporate income, establishing tax breaks or preferential trade duties, recruiting practices and promotion of minority members, consumer protection legislation, and standards for purity environment, price and wage control and so on.
The factor of political stability is of great importance for organizations conducting operations or having sales markets in other countries. In the host country, for a foreign investor or for the export of products, political changes may lead to restrictions on property rights for foreigners or the imposition of special import duties. On the other hand, the policy may also change in the direction favorable to investors when there is a need for capital inflows from abroad.
12) Relationship with the local population;
For almost all organizations, the predominant attitude of the local community towards it, in which this or that organization operates, is of paramount importance as a factor of indirect impact, if not to speak about the factor of actions of the federal authorities. In almost every community there are specific laws and guidelines in relation to business that determine where the activity of this or that enterprise can be deployed. Some cities, for example, have spared no effort to create incentives to attract industries to their city limits. Others, on the other hand, have been fighting in court for years to keep an industrial enterprise out of the city.
Many organizations make a dedicated effort to maintain good relationship with the communities in which they operate. These efforts may take the form of funding local schools, charitable activities, or supporting young talents in governance in lieu of cash donations to the community.
Conclusion
Thus, the external environment of direct influence (business environment) of the organization is formed in the course of its activities and changes over time. The environment changes if the product, markets, strategy, etc. change. Consumers are the main factor in the business environment. These are all direct buyers and clients: trading companies, official distributors, shops, manufacturing firms, sales agents, individual buyers and clients. Consumer influence can be expressed in different forms: in setting a certain price level, the presence of special requirements for quality, design, technical characteristics of products, forms of payment, etc. Manufacturers can influence consumers by setting lower prices, guaranteeing high quality and delivery times, offering unique products, good service maintenance... Customers are very important to the firm. They are the ones who determine its success. The modern business goal is to create its own consumer. The study of buyers allows you to better understand which product of the company will be used most in demand, on what volume of sales she can count on, what the product expects in the future, how much the circle of potential buyers can be expanded. Competitors are firms that sell products in the same markets or provide services that meet the same needs. They compete with each other for resources. And the most important of them is the buyer's ruble. The firm must know the strengths and weaknesses of the competitor and build on this basis its competitive strategy. The competitive environment is formed not only by intra-industry competitors producing similar products. Firms producing a substitute product and firms re-entering the market (“newcomers”) can become competitors. It is necessary to create barriers to the entry of potential "aliens" (specialization, low costs, control over distribution channels, access to cheap sources of raw materials, famous brand goods, etc.). In modern conditions, it is often not a fight with a competitor, but cooperation with him that allows you to effectively adapt to the environment and achieve your goals. Suppliers of material and natural resources can affect the organization, creating resource dependence. This dependence gives power to suppliers and allows them to influence the cost, quality of products, the timing of its manufacture, and in general - on the efficiency of the organization. The establishment of unjustifiably high tariffs for electricity and gas by monopoly enterprises, irregular supply or disconnection of these vital sources of resources in the event of non-payment, put many organizations on the brink of survival or bankruptcy. Therefore, they try to maintain mutually beneficial relations with their main suppliers, sometimes on a long-term contract basis. If a firm has reliable suppliers, it can save on holding inventory. You need to get rid of unreliable suppliers. Supplier analysis should show what is the competitive strength of the supplier and what are its factors. When analyzing, one should pay attention to the prices of goods and services, their quality, compliance with the terms, conditions and volumes of supplies, whether the supplier is a monopolist of this type of resources, whether it is possible to change the supplier. The labor market is people with the necessary qualifications, able to realize the goals of the company and willing to work in it. In a modern organization, this is the main resource. This group includes everyone with whom the firm interacts in order to provide itself with the necessary human resources: recruitment agencies, employment services, educational establishments, labor exchanges, retraining and retraining systems, trade unions. The study of the labor market allows you to obtain information on the availability of a labor force (required specialty, qualifications, age, work experience, personal qualities) capable of working with a company.
Summing up, I believe that the economic environment and market infrastructure consists of many factors that are inextricably linked. A change in one of the factors necessarily leads to the fact that there is a change in other factors. Therefore, their study and analysis should not be carried out separately, but systematically, with tracking not only changes in one factor, but also with the condition of how these changes will affect other factors.
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14. External environment: factors of direct impact. THE EXTERNAL ENVIRONMENT OF THE ORGANIZATION is the conditions and factors that arise independently of its (organization's) activities and have a significant impact on it. In addition, they contribute to the functioning, survival and efficiency of its work. External factors are subdivided into direct and indirect factors.
To factors of direct influence include suppliers of resources, consumers, competitors, labor resources, the state, trade unions, shareholders (if the company is a joint stock company), which have a direct impact on the activities of the organization;
To factors indirect impact include factors that do not directly affect the activities of the organization, but they should be taken into account in order to develop the correct strategy. The following factors of indirect impact can be distinguished:
1) political factors - the main directions public policy and methods of its implementation; possible changes in the legislative, regulatory and technical base; international agreements concluded by the government in the field of tariffs and trade, etc .;
2) economic factors - inflation rates; the level of employment of labor resources; international balance of payments; interest and tax rates; the size and dynamics of GDP; labor productivity, etc .;
3) social factors of the external environment - the attitude of the population to work and the quality of life; customs and traditions existing in society; mentality of society; level of education, etc .;
4) technological factors - opportunities associated with the development of science and technology, which make it possible to quickly reorganize to the production and implementation of a technologically promising product, to predict the moment of abandonment of the technology used.
15. Characteristics of the external environment. Many environmental factors can influence an organization.
The characteristics of the external environment include: interconnectedness of factors; complexity; mobility; uncertainty.
The interconnectedness of environmental factors is the level of force with which a change in one factor affects other factors.
The complexity of the external environment is understood as the number of factors to which the organization is obliged to respond, as well as the level of variance of each of them.
Mobility of the environment - the rate at which change occurs in the environment of the organization.
Uncertainty of the external environment is a function of the amount of information that an organization has about a particular factor, as well as a function of the confidence of this information.
External environment of the organization of direct impact:
suppliers (raw materials, materials, finance) of resources, equipment, energy, capital and labor;
state bodies (the organization is obliged to comply with the requirements of state regulatory bodies, that is, the enforcement of laws in the areas of competence of these bodies);
consumers (according to the point of view of Peter Drucker, the goal of an organization is to create a consumer, since its existence and survival depends on the ability to find a consumer, the results of its activities and satisfy his request);
competitors - individuals, groups of individuals, firms, enterprises competing in achieving identical goals, the desire to possess the same resources, benefits, to occupy a position in the market;
labor resources - a part of the country's population that has a set of physical and spiritual abilities necessary to participate in the labor process.
External environment of indirect impact:
technology - a set of means, processes, operations, with the help of which elements entering into production are converted into outgoing ones;
the state of the economy - affects the cost of all imported resources and the ability of all consumers to buy certain goods and services;
sociocultural factors - attitudes, life values and traditions that affect the organization.
Internal environment of the organization- situational factors within the organization. The main variables within an organization are goals, structure, objectives, technology, and people.
Goals are specific, end-state or desired outcomes that the group seeks to achieve by working together. The structure of an organization is a logical relationship between levels of management and functional areas, built in such a form that allows you to most effectively achieve the goals of the organization.
Tasks - a specific job, a series of jobs that must be completed in advance the established way in a predetermined time frame.
Yalta - 2015
Introduction
1. Contemporary views about the internal and external environment of the organization. Business environment concept.
2. The internal environment of the organization.
3. External environment of the organization
Direct factors
Indirect factors
4. Methods for analyzing the internal and external environment of the organization
5. Opportunities for improving the external and internal environment
Conclusion
List of used literature
Introduction
The most important concept in management is organization. Any organization is located and functions in the environment. Each action of all organizations, without exception, is possible only if the environment allows its implementation. The internal environment is the source of her life force. It contains the potential necessary for the functioning of the organization, but at the same time it can be a source of problems and even its death. The external environment is the source that feeds the organization with resources. The organization is in a state of constant exchange with the external environment, thereby providing itself with the possibility of survival. Naturally, these points should be the subject of constant attention from the manager. Therefore, the main task of this term paper will consider the elements of the internal and external environment of the organization, which are in constant interaction. And also the assessment and analysis of these factors using different methods.
Thus, the purpose of this work is to study the internal and external environment of the organization for more effective management decisions necessary for the successful operation of the enterprise (organization).
1. Modern ideas about the internal and external environment of the organization.
Business environment concept
In management, the entrepreneurial environment is understood as the presence of conditions and factors that affect the functioning of the firm and require management decisions to be made to eliminate them, or to adapt to them. It is customary to consider the environment of any organization as consisting of two spheres: internal and external. The external environment, in turn, is subdivided into a microenvironment (or a work environment, or an immediate environment, or an environment of indirect impact) and a macroenvironment (or a general, or direct business environment, or an environment of direct impact).
The internal environment is understood as the economic organism of the company, which includes a management mechanism aimed at optimizing the scientific, technical and production and marketing activities of the company. When it comes about the internal environment of the company, I mean the global structure of the company, covering all manufacturing enterprises firms, financial, insurance, transport and other divisions of the firm, regardless of their location and field of activity.
The external environment is understood as all conditions and factors that arise in the environment, regardless of the activities of a particular company, but that have or may have an impact on its functioning and therefore require management decisions.
However, the set of these factors and the assessment of their impact on economic activity are different for each firm. Conclusions of ongoing research or current events are accompanied by the development of specific tools and methods for making appropriate management decisions.
All enterprises operate in a specific environment that determines their actions, and their long-term survival depends on the ability to adapt to the expectations and requirements of the environment. Distinguish between the internal and external environment of the organization. The internal environment includes the main elements and subsystems within the organization, ensuring the implementation of the processes occurring in it. The external environment is a set of factors, subjects and conditions outside the organization and capable of influencing its behavior.
The elements of the external environment are divided into two groups: factors of direct and indirect impact on the organization. The environment of direct influence (business environment, microenvironment) includes elements that directly affect the business process and experience the same influence of the organization's functioning. This environment is specific to each individual organization and, as a rule, is controlled by it.
The environment of indirect influence (macroenvironment) includes elements that influence the processes occurring in the organization not directly, but indirectly, indirectly. This environment is generally not specific to a single organization and, as a rule, is outside its control.
2. Internal environment of the organization
The manager forms and changes, when necessary, the internal environment of the organization, which is an organic combination of its internal variables. But for this he must be able to distinguish and know them.
Internal variables are situational factors within an organization.
The main variables within the organization itself that require management attention are goals, structure, objectives, technology and people.
Goals are specific end states or desired outcomes that the group seeks to achieve by working together.
The main goal of most organizations is to make a profit. There are three main types of organizational profit orientation:
Maximizing it;
Obtaining a "satisfactory" profit, i.e. the bottom line is that when planning profit, it is considered "satisfactory" if the degree of risk is taken into account;
Minimization of profits. This option means maximizing the minimum expected returns while minimizing the maximum losses.
But not all organizations make profit main goal... This applies to non-profit organizations, such as churches, charitable foundations. Nonprofits have a variety of goals, but are likely to place more emphasis on social responsibility. An orientation driven by goals permeates all subsequent management decisions.
The structure of an organization is a logical relationship between levels of management and functional areas, built in such a form that allows you to most effectively achieve the goals of the organization.
The basic concept of structure is the specialized division of labor. A characteristic feature is a specialized division of labor - the assignment of this work to specialists, i.e. those who are able to do it best of all from the point of view of the organization as a whole. An example is the division of labor between marketing, finance and manufacturing experts.
A task is a prescribed job, a series of jobs, or a piece of work that must be completed in a predetermined manner within a predetermined time frame. From a technical point of view, tasks are assigned not to the employee, but to his position. Based on the decision of the management about the structure, each position includes a number of tasks that are considered as a necessary contribution to the achievement of the organization's goals.
Organizational tasks are traditionally divided into three categories. This is work with people, objects, information.
Changes in the nature and content of tasks are closely related to the evolution of specialization. As Adam Smith showed in his famous example of pin making, a specialist can significantly increase productivity. In our century, technological innovations and the systemic combination of technique and specialization of labor have made task specialization deep and complex to a degree that Smith could not even think of.
Technology as a factor in the internal environment has much greater importance than many think. Most people view technology as something related to inventions and machines, such as semiconductors and computers. However, the sociologist Charles Perrow, who has written extensively about the impact of technology on organization and society, describes technology as a means of transforming raw materials - be it people, information, or physical materials - into desired products and services.
Technology implies standardization and mechanization. That is, the use of standard parts can greatly facilitate the production and repair process. Nowadays, there are very few products, the production process of which is not standardized.
People are the backbone of any organization. People in the organization create its product, they shape the culture of the organization, its internal climate, what the organization is depends on them.
Because of this situation, people are “subject number one” for a manager. The manager forms cadres, establishes a system of relations between them, includes them in the creative process of joint work, contributes to their development, training and promotion at work.
Inner life organization consists of a large number of different activities, sub-processes and processes. Despite the huge variety of actions and processes, five groups of functional processes can be distinguished. These functional groups of processes are the following: production, marketing, finance, work with personnel, accounting (accounting and analysis of economic activity).
In the field of production management, management carries out the following operations: management of product development and design; choice technological process, placement of personnel and technology in the process in order to optimize costs; management of the purchase of raw materials, materials and semi-finished products; inventory management in warehouses; quality control.
Marketing management is designed to link in a single consistent process meeting the needs of the organization's customers and the achievement of the organization's goals. For this, the management of such processes and actions as: market research; advertising; pricing; creation of sales systems; distribution of created products; sales.
Financial management consists in the fact that management exercises control over the process of movement of funds in the organization. For this, the following is carried out: drawing up a budget and a financial plan; formation of monetary resources; the distribution of money between the various parties that determine the life of the organization; assessment of the financial potential of the organization.
Personnel management is associated with the provision of production and other areas with human resources (hiring, training and retraining).
Accounting management involves managing the process of processing and analyzing financial information about the organization's work in order to compare the actual activities of the organization with its capabilities, as well as with the activities of other organizations.
The main internal variables were discussed above. Keep in mind, however, that these variables should never be considered separately in management. No one will deny that the tasks of the organization affect the development of goals. Likewise, all other internal variables are interconnected and affect each other.
The internal environment of an organization can be viewed from the point of view of statics, highlighting the composition of its elements and structure, and from the point of view of dynamics, that is, the processes taking place in it. The elements of the internal environment include goals, objectives, people, technology, information, structure, organizational culture and other components.
People occupy a special place in the internal environment of the organization. Their abilities, education, qualifications, experience, motivation and dedication ultimately determine the results of an organization's work. The realization that the organization is, first of all, the people working in it, that they are the main resource of the organization, changes the attitude towards personnel. Managers pay great attention to the selection of people, their introduction into the organization, they are engaged in training and development of employees, ensuring a high quality of working life.
People working in the organization, their relationships and interactions form the social subsystem of the organization. The production and technical subsystem includes a complex of machines, equipment, raw materials, materials, tools, energy, which processes incoming resources into finished product... The main characteristics of this subsystem are: technologies used, labor productivity, production costs, product quality, volume of stocks. The financial subsystem carries out the movement and use of funds in the organization. In particular, maintaining liquidity and ensuring profitability, creating investment opportunities. The marketing subsystem is associated with meeting the needs of customers in the products of the enterprise by studying the market, creating a sales system, organizing optimal pricing and effective advertising, as well as active influence on the market in order to create new needs to increase market share and increase profitability.
3. External environment of the organization
Like the factors of the internal environment, the factors of the external environment are interrelated. The interconnectedness of environmental factors is understood as the level of force with which a change in one factor affects other factors. Just as a change in any internal variable can affect others, a change in one environmental factor can cause a change in others.
The external environment is not constant, changes occur in it all the time. Many researchers have pointed out that the environment of modern organizations is changing at an accelerating rate. Given the complexity of functioning in a highly mobile environment, an organization or its units must rely on more diverse information in order to accept effective solutions relative to their internal variables. This makes decision making more difficult.
The direct impact environment is also called the direct business environment of the organization. This environment forms such subjects of the environment that directly affect the activities of a particular organization.
From the point of view of a systems approach, an organization is a mechanism for transforming inputs into outputs. The main types of inputs are materials, equipment, energy, capital, and labor. Vendors provide input for these resources. Obtaining resources from other countries could be more profitable in terms of prices, quality or quantity, but at the same time it would be dangerous to increase such factors of fluidity of the environment as fluctuations in exchange rates or political instability.
All suppliers can be divided into several groups - suppliers of materials, capital, labor resources.
Laws and government agencies. Many laws and government agencies affect organizations. Each organization has a specific legal status, being a sole proprietor, company, corporation or non-profit corporation, and this determines how the organization can conduct its business and what taxes it must pay.
As you know, the state in a market economy exerts on organizations both indirectly, primarily through the tax system, state property and the budget, and directly through legislative acts.
Consumers. Well-known management specialist Peter F. Drucker, speaking about the purpose of the organization, singled out, in his opinion, the only true purpose of business - the creation of the consumer. This means the following: the very survival and justification of the existence of an organization depends on its ability to find a consumer of the results of its activities and satisfy his needs.
Various associations and associations of consumers, which influence not only demand, but also the image of firms, are also gaining importance in modern conditions. It is necessary to take into account the factors influencing the behavior of consumers, on their demand.
Competitors. The influence of such a factor as competition on the organization cannot be disputed. The management of each enterprise clearly understands that if the needs of consumers are not met as effectively as competitors are doing, the enterprise will not stay afloat for long. In many cases, it is not consumers but competitors who determine what kind of performance can be sold and what price can be asked for.
Indirect environmental factors or the general external environment usually do not affect the organization as noticeably as direct environmental factors. However, management needs to take them into account.
The indirect environment is usually more complex than the direct environment. Therefore, when studying it, they usually rely primarily on forecasts. The main environmental factors of indirect impact include technological, economic, socio-cultural and political factors, as well as relationships with local communities.
Technology is both an intrinsic variable and an extrinsic factor of great importance. As an external factor, it reflects the level of scientific and technological development that affects the organization, for example, in the fields of automation, informatization, etc.
Management should also be able to assess how general changes in the state of the economy will affect the operations of the organization. The state of the world economy affects the cost of all inputs and the ability of consumers to buy certain goods and services, the ability of an organization to obtain capital for its needs.
Any organization operates in at least one cultural environment. Therefore, socio-cultural factors, among which attitudes, life values and traditions prevail, affect the organization.
Socio-cultural factors influence the formation of the population's demand, labor relations, the level of wages and working conditions. These factors include the demographic state of society.
Certain aspects of the political environment are of particular importance to the leaders of the organization. One of them is the sentiment of the administration, legislatures and courts in relation to business. The factor of political stability is of great importance for companies conducting operations or having markets in other countries.
For almost all organizations, the predominant attitude of the local community towards it, in which this or that organization operates, is of paramount importance as an environmental factor of indirect impact. In almost every community there are specific laws and guidelines in relation to business that determine where the activity of this or that enterprise can be deployed.
While the environmental factors described above affect all organizations to one degree or another, the environment of organizations operating internationally is highly complex. The latter is due to the unique set of factors that characterize each country. Economy, culture, quantity and quality of labor and material resources, laws, government agencies, political stability, level of technological development vary from country to country. In planning, organizing, incentivizing, and controlling functions, managers should take these differences into account.
When an organization begins to conduct its business outside the internal market, the corresponding procedures are subject to modification for certain specific environmental factors. As the group of researchers points out: "The firm must determine in what respect the new environment differs from the more familiar one inside the country, and decide how to change the theory and practice of management in the new environment." However, the analysis of the factors of the international environment is a difficult and urgent task.
3.1 Factors of direct influence
The direct impact environment includes factors that directly affect the activities of the organization.
The following factors of the external environment of direct influence are distinguished:
consumers, suppliers, intermediaries, authorities, laws, trade union, competitors.
With regard to the studied organization, the most important of them are the following: consumers, suppliers, authorities and their laws, competitors.
Let's consider in more detail each of the listed factors.
Suppliers and consumers are the most important elements of the external environment for the company. As mentioned above, the customers of the firm act in the role of consumers, since they use the services of the given enterprise. Suppliers also play an important role as at what prices fuel and track superstructure will be purchased, such will be the transportation rates.
These two factors are ranked first in terms of importance for the organization due to the fact that in activities in this direction, since the lower the transportation rates, the more customers there will be. Naturally, the more clients a firm has, the more opportunities it has for development, the more globally its activities can be deployed and, accordingly, the greater the amount of profit it can receive.
Among the most significant factors of the external environment of direct influence, one can also note the authorities and the laws they issue. They can both stimulate and restrict the activities of this type of organization (direct or indirect methods), because the firm is a monopolist.
The main factors of the direct impact environment are the resource providers; consumers of products and services; competitors; government bodies and regulations that directly affect the activities of the organization.
Analysis of the direct impact environment includes consideration of individual factors and their interactions.
Suppliers ensure that the organization's need for a variety of resources is met. The main types of resources: material, labor, financial, information.
Provision with material resources includes the supply of raw materials and semi-finished products, component parts and assemblies, equipment, energy in accordance with the volume and structure of needs on time, provided that other conditions are met.
Provision of financial resources includes substantiation of the volume and structure of the required resources, relationships with investors, financial and commercial structures, the budget, and individuals.
For a modern organization, the importance of providing quality information management is increasing. This can be information about sales markets, competitors' plans, government policy priorities, new product developments, etc.
A special place is occupied by the provision of the organization with labor resources corresponding to it in terms of quantity, structure, level of general and professional training, and age. The most important thing here is the attraction of highly qualified senior managers, as well as the training of capable leaders, including within the organization.
Consumers purchase manufactured goods or services. Depending on the volume of demand, small and large consumers are distinguished. Accounting for recent requests necessary condition successful activity of the organization. Depending on the attitude towards consumers, we can talk about different strategies of the organization: sell already manufactured products; to produce products that the consumer needs; shape your consumer, convincing him of the need to purchase products that will be produced.
State and municipal bodies also directly influence the organization, and therefore relate to the environment of direct influence. These are tax and sanitary inspections, statistical bodies, etc.
As a result of the interaction of the organization with suppliers and consumers, a system of economic ties is formed - one of the most important characteristics of the direct impact environment.
Another characteristic is the state of the market environment. Here, first of all, the nature of the environment is determined - monopoly (pure, natural), oligopoly or monopolistic competition.
Competitors can compete for various objects. Traditionally - for the product markets. Currently, it is also a struggle with manufacturers of replacement products, for consumers' money.
Resources can also be objects of competition: labor, material and financial, scientific and technical developments, etc.
State influence is carried out through legislation and the activities of state bodies. Labor relations between employees and employers, tax, customs relations, labor protection, production conditions for certain types of products, consumer protection, environmental load, etc. are regulated by law.
State bodies, by the nature of their functions, can be conditionally divided into controlling and regulating. This uses different ways and methods of influencing organizations - issuing licenses, setting tax rates and quotas, regulating the level of prices and tariffs, determining construction sites, etc.
3.2 Indirect factors
The indirect impact environment consists of factors that do not have a direct and immediate impact on the organization's activities.
The environmental factors of indirect impact have a more complex structure, multifaceted nature. They, to a lesser extent than the environmental factors of direct influence, are influenced by the organization. Information about the environment of indirect effects is often incomplete. As the impact of this environment on the competitiveness of an organization increases, it has to rely on subjective assessments rather than analytical data.
Technologies as an environmental factor of indirect influence characterize the general level of productive forces. This is the most dynamic factor in this environment. The level and pace of technology change in different industries differ significantly. However, the most knowledge-intensive industries and industries are computer technologies, telecommunication systems, production synthetic materials- have a significant and increasing impact on other organizations, the effectiveness of their activities. The labor-intensive and capital-intensive stages of production development have been replaced by high-tech technologies that save traditional resources.
The rates of inflation, unemployment, tax rates and bank loans, the form and scale of state support for business, etc. directly affect the relationship of the organization with suppliers and customers, the behavior of competitors. For example, the establishment of tax incentives promotes capital inflows, and therefore facilitates the satisfaction of the need for financial resources. The forecast of an increase in the inflation rate prompts to increase inventories and obtain loans. The growing demand for material and financial resources also makes it difficult to acquire them.
The state of the economy as an environmental factor of indirect impact includes a number of characteristics.
First, these are the most General characteristics economic system- population size, availability and use of resources, type of government, monetary system, currency position, sectoral structure of the economy, parameters of the domestic market, volume, structure and geography of exports and imports, etc.
Secondly, this is an analysis of the general conditions for the development of entrepreneurship: characteristics of economic stability, the presence of market and technical infrastructure, the legislative framework, investment climate, conditions for the formation of new market entities, forms and scales of state regulation of the economy.
Third, this is a specific state, a stage of economic development, including an assessment of the economic situation, the level and rates of inflation, and the phase of the economic cycle.
Sociocultural factors are manifested in social values and attitudes, priorities, national traditions that affect the activities of the organization. In every country there are ideas about ethical business practices, the required quality standards of service, and acceptable levels of environmental impact. Typical examples of factors to be considered by an organization are Japan's lifelong employment tradition, the green movement and the demand for fur products; perceptions that women are risk-averse and their promotion to senior management positions.
Some social attitudes change with age. Comparatively young workers strive for independence in their work, willingly accept responsibility. At an older age, the desire to maintain one's status, the desire for social protection, etc. come to the fore. This influence of environmental factors should be taken into account in the systems of motivation.
Political factors determine the general political situation in the country, the level of its stability and predictability. A high level of political risk leads to a slowdown in the scientific and technical renewal of production, obsolescence of the structure, and a decrease in the competitiveness of national enterprises in the competition.
However, even in a relatively stable situation, there are clashes between various economic entities and the political forces and lobbying groups representing their interests. In the transitional economy of Russia, this is a clash of three complexes - military-industrial, fuel and energy, and agrarian. Currently, the struggle is going on in the field of privatization of the former state property, as well as for the distribution budget funds... It is clear that the solution of these problems, on the one hand, is determined by political factors, and on the other hand, it influences them.
The policy of local authorities has a significant impact on employment in the region and the location of enterprises, their impact on the environment, the extraction and use of natural resources, the creation of production, technical and social infrastructure.
For example, the number of building sites is always limited. Currently, local authorities are more interested in allocating them for the construction of industrial facilities, rather than housing. The reason for this is also because employees pay income tax at the place of work.
The environmental factors of indirect impact differ significantly from country to country. This must be taken into account by organizations involved in international business.
It is clear that the measure of the influence of environmental factors of indirect impact on the implementation of the organization different types international business will differ significantly. This influence will be most significant when creating joint ventures, less when making capital investments, especially portfolio ones, and even less when issuing licenses.
The influence of specific environmental factors of indirect impact will also be different. The general prerequisite for effective international business is the political situation in the country where the organization operates. The state of the economy and the development of technologies have a significant impact on international business. In some cases, for example, when exporting certain consumer goods, sociocultural factors can play a decisive role. When locating new production facilities, it is necessary to seek the support of local authorities.
4 Methods for analyzing the internal and external environment of the organization
Analysis of the external environment is an assessment of the state and development prospects of the most important, from the point of view of the organization, subjects and environmental factors: industries, markets, suppliers and a set of global environmental factors that the organization cannot directly influence.
There are a large number of methods for analyzing the internal and external environment of an organization, consider some of them:
SWOT analysis is the definition of the strengths and weaknesses of the enterprise, as well as the opportunities and threats emanating from its immediate environment (external environment).
§ Strengths - the strengths of the organization;
§ Weaknesses - weaknesses of the organization;
§ Opportunities - the organization's advantages in the market;
§ Threats.
Unlike the analysis of the strengths and weaknesses of SNW, the analysis also suggests the mid-market state (N). The main reason for adding a neutral side is that "it may often be sufficient to win the competition when a given organization is in state N in relation to all its competitors in all but one key positions, and only one in state S".
PEST - analysis is a tool designed to identify political (Policy), economic (Economy), social (Society) and technological (Technology) aspects of the external environment that can affect the company's strategy. The policy being studied regulates power, which in turn determines the environment of the company and the acquisition of key resources for its activities. The main reason for studying economics is to create a picture of resource allocation at the state level, which is essential condition activities of the enterprise. No less important consumer preferences are determined using the social component of PEST - Analysis. The last factor is the technological component. The purpose of her research is considered to be the identification of trends in technological development, which are often the reasons for changes and losses in the market, as well as the emergence of new products.
It is convenient to use an environment profile to compose a profile of the macroenvironment, the immediate environment, and the internal environment separately. The individual environmental factors are written out in the environmental profile table. Each of the factors is assessed in an expert way.
The external environment of the organization of indirect impact
- political factors, socio-cultural factors, the state of the economy, international events and other factors that may not have a direct immediate impact on operations, but, nevertheless, affect them.
The indirect environment is usually more complex than the direct environment. Predicting its impact on the organization, the management, as a rule, does not have reliable information regarding the direction and absolute values of environmental factors (the dollar exchange rate, the statutory minimum wage, the lending interest rate, and much more), therefore, when making strategic decisions for the organization, it is often forced to rely only on your intuition. It should be borne in mind that the organization cannot have a direct impact on changes in environmental factors of indirect impact. Since among them are technologies (in a broad sense, as a state of scientific and technological progress), the state of the economy, socio-cultural and political factors, relations with the local population, and the international environment.
So, the elements of the indirect impact of the external environment of the organization include:
1) Technology(as the state of scientific and technological progress) as an external factor reflects the level of scientific and technological development that affects the organization. Technology as an internal variable and external factor of great importance to the organization.
Technological innovations affect the efficiency with which a product or service can be produced and sold, the rate at which products become obsolete, how information can be collected, stored and distributed, and what kind of new products and services consumers expect from a given organization. ...
2) The state of the economy. The manager should also be able to assess how general changes in the state of the economy will affect the organization's operations, since it can strongly affect the organization's ability to obtain capital for its needs.
The state of the world economy affects, as a rule, the cost of raw materials. The state of the national economy determines the solvency of the population, the price of loans and much more.
A particular state of the economy can have a positive impact on some, and a negative impact on other organizations. Organizations doing business in many countries consider the state of the economy to be a particularly difficult and important factor in the external environment.
3) Socio-cultural factors. Any organization operates in at least one cultural environment. Therefore, the socio-cultural factors of this environment, including attitudes, life values, national traditions of the population, independent media and much more, affect the organization directly.
4) Political factors- the mood of the administration, legislatures and courts in relation to business. Sentiment influences government actions such as taxing corporate income, establishing tax breaks or preferential trade duties, compulsory certifications, trends in price-to-wage ratios, and more.
Certain aspects of the political environment are of particular importance to organizations.
Another element of the political environment that influences the performance of many firms is special interest groups or lobbyists. Examples of such groups: the military-industrial complex, big business, small business and more.
5) Relations with the local population. The local community is of overriding importance for the organization. In almost every community there are certain laws and attitudes in relation to business that determine where the activities of a particular organization can be deployed.
6) International environment. While the environmental factors described above affect all organizations to one degree or another, the environment of organizations operating internationally is highly complex. This is due to the unique set of factors that characterize each country. Economy, culture, quantity and quality of labor and material resources, legislation, state structure, political stability, level of technological development vary from country to country. All this makes it especially difficult to make managerial decisions in such an organization.
