The Ultimate Environmental Influences on Organizations Quiz

Environmental Influences on Organizations

• Organizations must change and adjust rapidly to survive in changing environments and ecosystems.
• Drivers for change in a digital world include institutional and systemic factors such as globalisation, regulation, and automation.
• PESTEL analysis is a tool used to examine macro-environmental influences on organizations, including political, economic, social, technological, ecological, and legal factors.
• Examples of PESTEL factors include changes in government, economic boom or recession, demographic shifts, technological advancements, environmental regulations, and industry-specific laws.
• Industry convergence is a contemporary environmental influence where historically separate industries come together to offer more diverse products or services.
• Technology plays a big role in industry convergence, such as telecommunications and digital products.
• The international dimension is another contemporary influence where more organizations have a global presence and offer the same products in many countries, resulting in cost advantages.
• Global businesses face competition on a global basis, and governments may offer grants or protection to home industries against foreign competition.
• Organizations should be aware of emerging markets, as they offer great opportunities for growth but also come with risks.
• Environmental influences can affect recruitment, economies, and marketing of products.
• Globalisation has resulted in many industries being dominated by relatively few global competitors.
• Technological changes can come out of the blue but once invented, they cannot be reversed, resulting in profound effects on organizations.