MANAGEMENT

Chapter 3: Managerial Environment

 Learning objectives of chapter 3

After studying this chapter, you should be able to:

 Define what managerial environment is

Explain the reasons why to study the managerial environment

Identify the factors that affect the manager’s work

Managerial Environment
What is managerial environment?

• Changing factors affecting the operation of an

organization
• Advantage or a disadvantage to the organization.
• Require managers to monitor and control
• To make the best decision for the organization.
How many managerial environment are there?

MACRO
ENVIRONMENT

r al nt MICRO Political
a t u me
N ron ENVIRONMENT
v i
En Competitive
Supplier

Eco
nom
ORGANI
l
Lega ZATION

ic
Customer
Distributor
l
Te Stake- Socia
ch Partner
no holder
l og
y
Content

Topic 1 Internal environment

Topic 2 External Environment

 Topic 1: Internal environment
:
After studying this topic, you should be able to:
Topic 3: Levels and skills of managers.

Define what internal environment is

 Identify forces in the internal environment

 Explain the reasons why to study the internal environment

Content

 What is internal environment?

 The forces of internal environment

 The importance of analyzing internal environment forces

1. What is internal environment?

Forces or conditions within the boundary of an

organization

An organization's internal environment is composed

of the elements within the organization.
2. The Forces of Internal Environment

(1) Value System

(2) Vision, Mission and

Objectives

(3) Organization Structure

Internal
Environment (4) Corporate Culture

(5) Human Resources

(6) Physical Resources and

Technological Capabilities.
3. The importance of analyzing internal environment forces

Why do managers analyze the forces of internal environment?

Analyze Find out What for?

Internal Achieve competitive
Organizational Strengths
Environment advantages of
Forces organization
Weaknesses
 Topic 2: External Environment

After studying this topic, you should be able to:

Topic 3: Levels and skills of managers.

Define what external environment is

 Identify forces in the external environment

 Explain the reasons why to study the external environment

1. What is external environment?

All outside factors that may affect an organization make up

the external environment.

The external environment is divided into two environment

2. External Environment

Micro

External
Macro
2.1. Micro

Supliers

Customers

Micro
Distributors

Competitors
2.2. Macro

Political

Economic

Sociocultural
Macro
Technical

Legal

Natural environment
3.The importance of analyzing external environment
forces

What do managers study the external environment for?

Identify Find out What for?

external take the opportunity
external Opportunities
Environment
Forces
threats avoid the threats