Environmental Forces and Environmental Scanning

               The External Business Environment  includes the factors and elements outside the
organization which may affect its performance. The internal business environment refers to the
factors or elements within the organization which may also affect its performance, either
positively or negatively .
Components of The External Business Environment:General and Specific
              The general business environment includes the economic, sociocultural, politico-legal,
demographic, technological, and world and ecological situations.
EXTERNAL:
Economic situations- may affect management practices in organizations.
Sociocultural situations – includes the costumers changing values and preferences customs
could also affect management practices in companies.
Politico-legal situations-  refer to national or local laws , international laws, and rules and
regulations that influence organizational management.
Demographic situations- such as gender ,age , education level , income, number or family
members ,georaphic origin etc.
Technological situations- companies involve the use of varied types of electronic gadgets and
advanced technology such as computers, robotics, microprocessors.
World and ecological situations- are related to the increasing number of global compe those
titors and markets , as well as the nature and condition of changing natural environment.
SPECIFIC:
             Meanwhile, the specific business environment focuses on stakeholders,  costumers,
pressure groups , and investors or owners and their employees.
Stakeholders- are parties likely to be affected by the activities of the organization,  while
costumers are those who patronize the organization’s products and services.
Suppliers – are who ensure the organization’s continous flow of needed and reasonably priced
inputs or materials required for producing their goods and randering their services.
Pressure groups- are special interest groups that try to exert influence on the organization’s
decisions or actions.
Investors or owner – provide the company with the financial support it needs .
Employees – are comprised of those who work for another or for an employer in exchange of
salaries / wages or other considerations.