COMPONENTS OF THE INTERNAL BUSINESS ENVIRONMENT

 An Organizational Internal Business Environment is composed of its resources,

research and development, production, procurement of supplies, and the
products and services it offers.
 The Organizational Internal Environment must be Also subjected to internal
analysis, Internal strengths and weaknesses, opportunities and threats (SWOT)
with regards to its resources (Financial, Physical, Mechanical, Technological,
and Human Resources)

COMPONENTS OF ENVIRONMENTAL SCANNING

COMPETITIVE MINDSET

 Adapting to environmental uncertainties must star with developing a

Competitive mindset. By seeking and sorting through data about the
environment, you’re able to understand and predict the vatious changes,
opportunities, and threats that may affect organizations in the future.

CONSIDERING FUTURE BUSINESS SCENARIOS

 By realistic consideration of both worth case scenario or unfavorable future

conditions and best-case scenario or favorable future conditions, as well as
middle ground possible conditions, you will have an idea of what to do in the
future.

BUSINESS PREDICTION

 Business Prediction, also known as business forecasting, it is a method of

predicting how variables in the environment will alter the future of business.

BENCHMARKING

 Benchmarking is defined as the process of measuring or comparing one’s own

products, services, and practices of those of the recognized industry leaders in
order to identify areas for improvement.
LESSON 2: THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE
FIRM

CULTURAL INTELLIGENCE

 Cultural Intelligence is an Individual’s ability to favorably receive and adjust to

an unfamiliar way of doing things.

Anthropologist EDWARD T. HALL, as cited by SCHERMERHORN (2008), the way

people approach and deal with the time varies across cultures.

MONOCHRONIC CULTURES

 refers to cultures wherein people tend to do one thing at a time; also, these
cultures emphasize punctuality and sticking to set rules.

POLYCHRONIC CULTURES

 are more flexible as regards time; accomplishing many different things at once
is also common for these cultures.

Geert Hofstede, cited by SCHERMERHORN (2008), showed how selected countries

ranked on the five cultural dimensions he studied

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 emphasize individual accomplishments versus collective

accomplishments

MASCULINITY-FEMININITY

The degree to which a society values assertiveness and feelings of material success
versus concern for relationship.

TIME ORIENTATION

The degree to which a society emphasizes short-term thinking versus greater concern
for the future or longterm thinking.