EXTERNAL ENVIRONMENT

External Environment
-presents varying forces that influences organizational direction and strategic decision making.
•External Environment Forces
1.SOCIAL FORCES

-important issues that are characteristic of global and local societies.

a.) Changing Social Structures

-the network of social institutions that includes the family and community

b.) Aging Population/Demand for Health Services

-people needed more medicine and health services
-provide elderly people with adequate medical and community services.

c.)Sophisticated Lifestyle of People

-wants and needs of people that are continuously changing, more demanding,
complicated, and unique.
d.)Cross-cultural Diversity
-workplaces are shifting and people in the global community are either working or
migrating as a result, culture being a basic compound of the global environment.

2.POLITICAL FORCES
-affects the global political balance
a.) Political Independence/Changing Government
-fight to attain and maintain political supremacy.
-changes in government; from communism to capitalism, dictatorship to democracy and
some colonize are waging to attain independence.

b.)Terrorism/Suicide Bombings
-critical security problems like terrorisn, kidnapping,suicide bombings and hijackings.

c.)Chemical and Nuclear Threats

-developing and producing weapons to blackmail other countries.Spread of chemicals,
viruses and other forms of microorganisms.

d.) Global Alliances

-politically, nations are aligning themselves for self-presentation and global stability and
strength. Global relationships are essential to national survival for today.

3. ECONOMIC FORCES

-affect the growth and development of the Nation.

 a.)Globalization
-can be viewed from four perspective;

•product •people •ideas •money

-mobility of people
-marketing or trading

b.)Competitors and Suppliers

-competes to get a large slice of the market.

c.)Fall of Financially Stable Organizations

-downfall of a number of financially successful organizations that were managed by
respetable and competent presidents and chief executive officers.

d.)Increasing Oil Prices

-creating economic instability in global communities.

e.) Economic Trade Agreements

-economic alliances that allows local products to reach other markets.

WTO- World Trade Organization

AFTA- Asian Free Trade Organization

NAFTA- North American Trade Agreement

APEC- Asia-Pacific, Economic, Cooperation

f.) Emerging Markets

-political, social and economic growth and development of a country is the emergence of
different markets.

g.) Rise of China

- supplier and big market
-provide goods and services to the world market.

4. TECHNOLOGICAL FORCES
-changes in the world today have been the result of rapid developments in information
technology.

a.) Communication Technology

-CCTV cameras, advancements of phones and gadgets , communication through apps
 b.)Computer-Integrated Business
-makes production more efficient, designs result in concise output, product innovation is
easier to create, product development.

c.) E-banking
- transactions like deposits, withdrawals and payments.

d.) E-learning
-makes convenient in learning from home, office, vacation

e.)Digital Medicine
-cure illnesses through the help of technology.

f.) E-security
-information technology

5. Environmental Forces
- Urgent call of the global neighborhood.

a.) Climate change/Use of Biodegradable Materials

-effects of environmental degradation and malpractices.

b.) Environmental Waste Management

- air, noise, and water pollution
-mismanaged disposal of toxic wastes

c.) Preservation of Rainforest and Marine Life

-depletion and denudation of forest
-damage to properties and danger to human lives.