organisation and its environment

• Organization and its environment can be categorized as stable or turbulent, with slow changes and predictable directions of change, or rapid changes in different directions that are hard or impossible to predict.
• Macro-environment includes general forces shaping conditions for business, which can be divided into sectors such as Political and legal, Economic and financial, Social and cultural, Technological and physical.
• Economic environment consists of entities that are linked to the organization by market ties of purchasing (supplier), cooperation (cooperators), selling (clients), competition (competitors) or financing (financial institutions, banks, investors, sponsors).
• Social environment includes the specificity of social groups that the organization comes into contact with and that by nature have an autonomous character, i.e., they are not subject to any influence in the management process of the organization.
• Strengths, weaknesses, opportunities, and threats (SWOT) analysis is one of the most popular strategic analyses.
• Determinants of supplier power include bargaining leverage, price sensitivity, and substitution threats.
• Entry barriers include industry growth, fixed (or storage) costs/value added, intermittent overcapacity, product differences, brand identity, switching costs, concentration and balance, informational complexity, diversity of competitors, corporate stakes, and exit barriers.
• Rivalry determinants include differentiation of inputs, switching costs of suppliers and firms in the industry, presence of substitute inputs, supplier concentration, importance of volume to supplier, cost relative to total purchases in the industry, impact of inputs on cost or differentiation, threat of forward integration relative to threat of backward integration by firms in the industry.
• Porter's Five Forces include economies of scale, proprietary product differences, brand identity, switching costs, capital requirements, access to distribution, absolute cost advantages, proprietary learning curve, access to necessary inputs, proprietary low-cost product design, government policy, expected retaliation.
• Environmental analyses can be conducted through Macro-environment, PEST, Micro-environment, PORTER Five Forces, Task environment, and SWOT.
• External material balance is a condition in which the material benefits received from the environment cover all the costs of the organization's functioning, including depreciation due to wear and tear of resources and remuneration of capital, enabling the organization to continue functioning and generate profits for further expansion.
• External balance is a condition of exchange between the organization and its environment, where the material benefits received from the environment cover all the costs of the organization's functioning, including depreciation due to wear and tear of resources and remuneration of capital, enabling the organization to continue functioning and generate profits for further expansion.
• External social balance is a phenomenon that can be described as the level of social acceptance of an organization, with factors such as positive or negative opinions in media, legal disputes, opinions of analysts, investment advisors, political support, relationships with trade unions, consumer associations, environmental protection associations, minorities, complaints and accusations, polls results, and extraordinary events in social environment, such as boycotts, collective disputes, consumer and employee strikes, solidarity actions, etc.
• Internal balance is a condition in the organization where the expectations of both parties, the organization and its employees, are met satisfactorily, enabling the organization to continue functioning and generate profits for further expansion.
• Internal material balance is the balance between the material benefits provided by the organization to its participants and the ones provided by the participants to the organization, and the material harmonization of the activities and operations within the organization.
• Legal environment includes the applicable legal norms that stipulate the framework and the terms under which organizations function, usually designed as “hard” restrictions that explicitly enforce determined norms for structures and processes that are realized within the organization and their effects (for example, the financial law, tax law, labor law, company law).
• The proactive transformation process involves a fundamental transformation of the organization internally, which is caused by a change in the comprehension of its mission and goals.
• Information is the knowledge that is acquired through these interactions.
• Managers are responsible for mobilizing resources which include material, technological, and human resources.
• Monitoring and control are crucial aspects of management.
• Contacts are the interactions between people through various channels such as phone, email, social media, etc.
• The competitive and task environment refers to the network of stakeholders such as customers, suppliers, unions, partners, competitors, and special interests, which are different for every organization.
• Culture refers to the values, beliefs, and behaviors that are shared by a group of people.
• Knowledge management system is a tool used to manage and organize information.
• Autoreflection and self-esteem are important aspects of personal development.
• Understanding the needs of the environment involves understanding the wants and desires of the people who use the products or services of the organization.
• The result of such a transformation is a redefinition of the relationship between the organization, its resources that are involved in the realized processes, the actual processes and their products, and the environment in which the organization functions.
• The adaptive transformation process should occur as a result of serious qualitative changes in the external environment of the organization.
• Technological environment includes the development of various technologies, which may effect the functioning of the organization.
• In the next three years, respondents said the following technologies will drive the greatest business transformation: IoT, AI, Robotics, and Drive the greatest benefit to life, society, and the environment.
• Sources of imbalance can be a decrease in demand, change in access to resources or their price, external blockade, lack of processes harmony, riots, or loss of credibility in the eyes of members.
• Internal social balance is based on mutual acceptance, understanding or even emotional involvement between an organization (in practice – its management) and the organizational participants (members).
• The participants (employees) have to be convinced about the righteousness of the mission and goals of the organization, as well as about its durability and the fact that the organization treats them fairly and that it is in their personal advantage to operate within its framework and in accordance with the expectations of the management and to be loyal.
• Internal revolt, limitations of funding, uncertainty of the environment, reengineering, innovation, adaptation to the environment, structural changes, internal social mobilization or demobilization, additional funding, low and high levels of destabilization, stabilization, and balance are factors that can affect the balance of an organization.
• The dynamic character of the organizational balance includes managers, stabilization, intentional destabilization, short-term and long-term strategies.
• Functional balance is a situation in which all four individual balances are at such a level that an organization reacts appropriately to the impulses of the control centre (in other words, it is “manageable”) and can realize its mission and its goals to an extent that considered satisfactory.
• Based on such convictions and attitudes the roles of the organizational participants (employees) are fulfilled properly and commitment to the organizational matters is created, which is reflected in innovativeness, undertaking extracurricular tasks and in the general willingness to perform better than is actually required from the given function, etc.
• Starbucks is an example of an organization with dynamic organizational balance.
• In such a situation, the processes realized within the organization receive sufficient support, both material and social, as well as internally and externally.
• Intangible information is the capacity of an organization to acquire the necessary information internally as well as from its environment, storing this information, locating this information when needed and utilizing it in the realized processes.