OM

• Environmental scanning


  Seeking for and sorting through data about the environment
• External business environment


  Factors/elements outside the organization which may affect, either positively or negatively, the performance of the organization
• Internal business environment


  Factors/elements within the organization which may affect, either positively or negatively, the performance of the organization
• Inflation


  A period of above normal general price increases, as reflected in the consumer and wholesale price indexes
• Interest rates


  The total amount that a borrower must pay annually to the lender and above the total amount borrowed
• Changing options


  The consumers' change in preference of goods and services offered
• People's spending habits


  Consumers' changing ways of spending their money on goods and services
• Economic situations


  Includes inflation rates, interest, people's spending habits, changing options, etc.
• Components of the External Business Environment


  • Economic situations
  • Sociocultural situations
  • Politico-legal situations
  • Demographic situations
  • Technological situations
• Stakeholders


  Parties likely to be affected by the activities of the organization
• Customers


  Those who patronize the organization's products and services
• Suppliers


  Those who ensure the organization's continuous flow of needed and reasonably priced inputs or materials required for producing their goods and rendering their services
• Pressure groups


  Special-interest groups that try to exert influence on the organization's decisions or actions
• Investors/owners


  Provide the company with the financial support it needs
• Employees


  Those who work for another or for an employer in exchange of salaries/wages or other considerations
• Business prediction/forecasting


  A method of predicting how variables in the environment will alter the future of business
• Benchmarking


  The process of measuring or comparing one's own products, services, and practices with those of the recognized industry leaders in order to identify areas for improvement
• Inflation rate


  Rate reflected during a period of above normal general price increases
• Gross national product (GNP)


  Total domestic and foreign output claimed by the residents of a country
• Gross domestic product (GDP)


  Total final output of goods and services produced by the country's economy, within the country's territory
• Currency exchange rate


  The rate at which central banks will exchange the country's currency for another
• Monochronic cultures


  Cultures wherein people tend to do one thing at a time, and emphasize punctuality and sticking to set rules
• Polychronic cultures


  Cultures that are more flexible as regards time, and accomplishing many different things at once is also common
• Power Distance


  The degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society
• Uncertainty Avoidance


  The degree to which society is uncomfortable with risk, change, and situational uncertainty
• Individualism-Collectivism


  The degree to which a society emphasizes individual accomplishments versus collective accomplishments
• Masculinity-Femininity


  The degree to which a society values assertiveness and feelings of material success versus concern for relationships
• Time Orientation


  The degree to which a society emphasizes short-term thinking versus greater concern for the future or long-term thinking
• Worldwide Environment


  The external business environment (i.e. sociocultural, natural, politico-legal, and economic technological factors) around the world
• Globalization


  Changes in the dimensions of external environment that result in increased interdependence and integration among people and organizations around the world
• Economic development


  A total process which includes not only economic growth or the increase in the given amount of goods and services produced by the country's economy, but also considers the social, political, cultural, and spiritual aspects of the country's growth
• Economic development phases


  The distinct stages involved in the total process of economic development in a particular country, including economic growth, improvement of the Human Development Index (HDI), availability of benefits provided by science and technology, and the societal improvement of the opportunities and general welfare of its members
• Economic growth


  Increase in the given amount of goods and services produced by the country's earning
• The MDGs and the PDP can help guide the management of businesses in the Philippine setting. In particular, the PDP must be taken into consideration in order to deem management as appropriate or country-specific.
• Organization


  A collection of people working together to achieve a common purpose
• Business organization


  A collection of people working together to achieve a common purpose in relation to their organization's mission, vision, goals, and objectives, sharing a common organizational culture
• Organizational culture


  The set of beliefs and values shared by organization members which guide them as they work together to achieve their common purpose
• Simple business organizations


  Business organizations with few departments, centralized authority with a wide span of control, and with few formal rules and regulations
• Functional business organizations


  Business organizations that group together those with similar or related specialized duties that introduce the concept of division of labor
• Changing Forms of Business Organizations

  • Traditional (simple, functional, divisional, profit, or non-profit)
  • Open/flexible