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Organizational environments and cultures - Making sense of hanging environments

Q: What are the characteristics of social influence

1. Demographic characteristics and changes : The world population is increasing, with higher life expectancy, Demographic aging, a shrinking workforce, greater care needs, and active older generations. 2. Cultural characteristics such as changes in general behavior, attitudes, and beliefs: They affect the demand for a business's products.

6 important questions on Organizational environments and cultures - Making sense of hanging environments

What are the characteristics of the economic influence?

1. Growing economy means consumers have more money to spend
2. Domestic economic indicators include national income, purchasing power, income distribution, inflation, and employment
3. International economic indicators include economic growth, exchange rates, interest rates, and labor costs in other countries.
4. Influences basic business decisions: Managers scan the environment by business confidence indices

What are the characteristics of social influence

1. Demographic characteristics and changes: The world population is increasing, with higher life expectancy, Demographic aging, a shrinking workforce, greater care needs, and active older generations.
2. Cultural characteristics such as changes in general behavior, attitudes, and beliefs: They affect the demand for a business's products.

What are the characteristics of the technological influence?

1. Knowledge, tools, and technique to transform raw inputs into outputs.
2. Technological changes creates opportunity, but also risks. (disruptive innovation).
3. Must be used effectively to improve products or decrease costs.

What are the characteristics of environmental influence?

1. Economic growth is linked to a rise in pollution, and the exhaustion of natural resources. (Loss of biodiversity, climate change, overexploitation, etc.)
2. The environment is now seen as a major point of attention, with a focus on cleaning up, innovating, and sustainability.

What are the characteristics of the legal influence?

1. Legalisation regulation, and court decisions that govern and regulate business behavior.
2. Managers must be aware of the laws, regulations, and potential lawsuits that could affect their businesses.

What are the general political trends?

1. Democracy or autocracy?
2. Movements to left/right
3. Changes in political ideologies
4. Political stability in a certain country
5. Movement towards political integration (EU), or isolationism (Brexit) can have a significant impact on organizations.