Open systems – organizations that are affected by and that affect their environment
Inputs – goods and services organizations take in and use to create products or services
Outputs – products and services organizations create.
External environment – all relevant forces outside a firm’s boundaries, such as competitors, customers, the government and the economy
Competitive environment – immediate environment surrounding a firm; includes suppliers, customers, rivals and the like
Macroenvironment – includes governments, economic conditions and other fundamental factors that generally affect all organizations.
All organizations operate in a macroenvironment which comprise of the following:
Laws and regulations * The government can affect business opportunities through tax laws, economic policies and international trade rulings. * Regulators are specific government organizations in a firm’s more immediate task environment.
The economy * Economic environments dramatically affect managers’ ability to function effectively and influences their strategic choices. * The stock market is an important economic influence. It may also have profound effects on the behavior of individual managers. * Economic conditions change over time and are difficult to predict.
Technology
* Technological advances create new products, advanced production techniques and better ways of managing and communicating * Also, new industries, markets and competitive niches develop.
Demographics – measures of various characteristics of the people who make up groups or other social units * Managers must consider workforce demographics in formulating their HR strategies * A more diverse workforce has many advantages, but managers have to make certain they provide equality for women and minorities with respect to employment, advancement opportunities and