Managers and the Environment

Environmental Factors:

1. Economic: Includes capital, labor, prices, and policies.

2. Technological: Advances in technology affecting business operations.
3. Social: Societal attitudes, expectations, and cultural factors.
4. Political: Political stability and regulations impacting business.
5. Ethical: Business ethics and compliance with laws.

MIS Influence: MIS helps managers navigate these environmental factors by providing data and
insights for better decision-making. For example, an MIS can track economic indicators,
technological trends, and social changes, allowing managers to adjust strategies accordingly.

Real-Life Examples

1. System Theory in Management:

o Example: A manufacturing company uses an MIS to monitor production
processes. When a drop in efficiency is detected, the system alerts managers, who
then investigate and resolve issues, ensuring continuous productivity.