Environmental Factors in Organizations

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Questions and Answers

What does the micro-level of business environment focus on?

External market trends

Technological advancements

Individual roles and internal departments (correct)

Societal behaviors and norms

Technological factors only refer to internal advancements within an organization.

False

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats

A local organic products online business can leverage government support for small businesses related to __________.

eco-friendly initiatives Signup and view all the answers

Which of the following is NOT considered a weakness in the local organic products online business example?

Skilled workforce Signup and view all the answers

Match the following SWOT components with their examples:

Strengths = Uses locally-sourced organic materials Weaknesses = Limited funds for marketing Opportunities = Government support for eco-friendly initiatives Threats = Increased competition Signup and view all the answers

Social factors can include customer preferences that are influenced by cultural norms.

True Signup and view all the answers

What key advantage does the local organic products online business gain by using locally-sourced materials?

Reducing import costs Signup and view all the answers

What is the primary purpose of environmental scanning?

To gather information about events and trends Signup and view all the answers

The internal environment is entirely uncontrollable by the organization.

False Signup and view all the answers

List one example of an external environmental factor according to the PEST model.

Political, Economic, Social, or Technological Signup and view all the answers

The forces within an organization that can affect its performance are part of the __________ environment.

internal Signup and view all the answers

Match the environmental factors to their descriptions:

Internal Environment = Organizational structure and culture Task Environment = Immediate operational influences External Environment = Uncontrollable external factors Five Ms = Method, manpower, money, materials, and machinery Signup and view all the answers

Which of the following factors is included in the task environment?

Suppliers Signup and view all the answers

Competitors are part of the internal environment of an organization.

False Signup and view all the answers

The five internal resources are method, manpower, money, materials, and __________.

machinery Signup and view all the answers

Study Notes

Environment Definition

"Environment" originates from the Greek word "enveron," meaning "to surround."
It encompasses all factors that influence an organization's growth and development.
This includes both internal processes and external influences.

Environmental Scanning

It's the process of gathering information about internal and external factors.
Helps organizations understand current and potential future changes.
Enables informed decision-making for the organization's future.

Types of Environmental Factors

Internal Environment:
- This includes controllable factors within the organization.
- Examples:
  - Organizational structure
  - Culture
  - Human resources
- "5Ms" (method, manpower, money, materials, machinery) are crucial internal resources.
  - Helps identify the organization's strengths and weaknesses.
Task Environment:
- Refers to the immediate environment influencing the organization's daily operations.
- Includes:
  - Suppliers: Provide raw materials and resources.
  - Distributors: Help sell the organization's products/services.
  - Customers: The people/entities purchasing goods or services.
  - Competitors: Businesses offering similar products, competing for the same customers.
External Environment:
- Factors outside the organization's control.
- Requires adaptation from the organization.
- PEST model (Political, Economic, Social, and Technological) helps identify opportunities and threats.
  - Political Factors: Government policies and regulations affecting business operations.
  - Economic Factors: Economic trends (inflation, unemployment) influencing purchasing behavior.
  - Social Factors: Societal trends, behaviors, and cultural norms affecting customer preferences.
  - Technological Factors: Technological advancements changing the market landscape and production/sales.

Levels of Business Environment

Micro-Level:
- Focuses on the internal workings of the organization.
- Considers departments, teams, and individual roles.
- Emphasizes how internal elements interact to achieve organizational goals.
Macro-Level:
- Views the organization as a whole within the larger society.
- Considers external factors (market trends, societal changes) impacting the organization's operations.

SWOT Analysis

Connects internal strengths/weaknesses with external opportunities/threats.
Provides a strategic view of the organization's position.
Strengths (internal): Resources and capabilities providing an advantage.
Weaknesses (internal): Limitations hindering performance.
Opportunities (external): Beneficial external factors for growth and improvement.
Threats (external): Challenges or risks that could harm the organization.

SWOT Analysis Example

Strengths (internal):
- Uses locally-sourced organic materials, reducing import costs.
- Growing interest among Filipinos in sustainable, eco-friendly products.
- Lower operating costs due to being an online business.
Weaknesses (internal):
- Limited funds for marketing and advertising.
- Struggles with high shipping costs, especially for customers in remote areas.
- Difficulty competing with well-known brands.
Opportunities (PEST-related external):
- Political: Government support for small businesses and eco-friendly initiatives.
- Economic: More Filipinos (particularly in cities) are willing to spend on premium, organic products.
- Social: Filipinos are becoming more environmentally conscious, preferring green products.

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Description

This quiz explores the concept of the environment in organizations, including internal and external factors that affect growth and development. It covers environmental scanning and the types of environmental factors, such as the internal environment and task environment. Test your knowledge on how these elements influence organizational decision-making.