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MANAGEMENT AND ITS ENVIRONMENT

MANAGEMENT

Macro environment

Microenvironment

Social-Cultural . Technological state 3. Political-legal environment 2.MACRO ENVIRONMENT 1.

Technological state:  Technology can bring millions to one company and take millions from another. Political-legal environment  The effects of this are quite visible.1. Organizations on the frontier usually experience a boom. pushed by politics lowers he acceptable emission rates. or raising interest rates. Just think of the effect of changing taxes. Social-Cultural environment  This is a very important but also very diverse category. 3. If the legal system. 2. with many following. A good manager has to be aware of change and embrace technology to gain an edge on competition. . but some rivals may go bankrupt. companies may have to invest in new equipment or close down.

Competition 6. Owners and the Board 3. Government .MICROENVIRONMENT 1. Contractors 5. Consumers 4. Employees 2. Financial Organizations 7.

but this doesn t always mean large profits have to be shown all the time. The investment mood is a primary question for every organization. while a negative mood means extra costs. Organizations are limited by their money supply and the constraints of the general workforce. This means finding some highly specialized people and generally trained workers.1. It is important that the owners are satisfied with the company. A positive mood means funds. Employees  Organizations have to find the right people for each job. 2. Owners and the board  .

there are ten of the same. The main objective here is sustaining a well oiled input supply system. Today. . Contractors The inputs of organizations are supplied by its contractors. competition is so large that for every product. but it may happen viceversa. but different brands. Depending on size the contractors may race to keep the organizations happy.3. Consumers Another important goal of the company is to keep the consumers happy. 4. Organizations recognize that it is in their own interest to keep consumers happy.

It is also possible for organizations to buy a part of their competition. Competition  Competition. Their guarantee may be needed for large projects. . For example. or rather the observation of it. the most important thing is that they insure functionality day to day. but aside all that. the exchange rate difference between two banks could mean millions of extra loss or profit. 6. or they can try to outsmart them. is important if the company wants to keep its position on the market. Financial organizations  Their effect is possibly the most visible.5.

They can also give extra tax-refunds or they may punish unlawful behavior. They may subsidize. The government  Governments may have a direct or indirect effect.7. giving money directly to the organizations. .

SOCIAL RESPONSIBILITIES OF BUSINESS .

Social Responsibility Social responsibility of business refers to all such duties and obligations of business directed towards the welfare of society. These duties can be a part of the routine functions of carrying on business activity or they may be an additional function of carrying out welfare activity. .

The activities of business towards the welfare of the society earn goodwill and reputation for the business. So for its survival and growth. ii. Government Regulation . Survival and Growth -Every business is a part of the society. . support from the society is very much essential. iii. i.Why should business be socially responsible? Public Image .To avoid government regulations businessmen should discharge their duties voluntarily.

v. transportation. Consumer Awareness . Employee satisfaction .Now-a-days consumers have become very conscious about their rights. employees also expect other facilities like proper accommodation. education and training.Besides getting good salary and working in a healthy atmosphere. .Why should business be socially responsible? iv.

Proper utilization of capital and other resources. . b. d.Responsibility Towards Different Interest Groups i. Responsibility towards owners Owners are the persons who own the business. a. They contribute capital and bear the business risks. Growth and appreciation of capital. Regular and fair return on capital invested. Run the business efficiently. c.

financial institutions. b. Responsibility towards investors  Investors are those who provide finance by way of investment in debentures. . c. deposits etc. Banks. Timely repayment of principal amount.Responsibility Towards Different Interest Groups ii. and investing public are all included in this category. bonds. Ensuring safety of their investment. a. Regular payment of interest.

transport. retirement benefits. crèches etc. c. Job security as well as social security like facilities of provident fund. Better living conditions like housing. f. b. pension. Responsibility towards employees a. Proper working conditions and welfare amenities. d. . Opportunity for better career prospects. etc. e. Timely training and development. canteen.Responsibility Towards Different Interest Groups iii. group insurance. Timely and regular payment of wages and salaries.

d. Dealing on fair terms and conditions. b. Availing reasonable credit period. Timely payment of dues. . Giving regular orders for purchase of goods. c. Responsibility towards suppliers a.Responsibility Towards Different Interest Groups iv.

adulteration. g. if any. Products and services must be qualitative There must be regularity in supply of goods and services Price of the goods and services should be reasonable and affordable. b. h. e. Products and services must be able to take care of the needs of the customers. must be settled quickly. Unfair means like under weighing the product. All the advantages and disadvantages of the product as well as procedure to use the products must be informed do the customers. Grievances of the consumers. c. . There must be proper after-sales service. f. must be avoided. etc. Responsibility towards customers a. d.v.

agents etc. Responsibility towards competitors Competitors are the other businessmen or organizations involved in a similar type of business. not to offer to customers heavy discounts and /or free products in every sale.Responsibility Towards Different Interest Groups vi. not to offer exceptionally high sales commission to distributers. ii. not to defame competitors through false or ambiguous advertisements. iii. . i.

Setting up units as per guidelines of government b. Conforming to pollution control norms set up by government. e. c. Payment of fees. Responsibility towards government a. Not to indulge in monopolistic and restrictive trade practices. Not to indulge in corruption through bribing and other unlawful activities.vii. d. . duties and taxes regularly as well as honestly.

to generate employment d. Responsibility towards society a. medical science. . to protect the environment e. to promote sports and culture g. to provide assistance in the field of developmental research on education. technology etc.viii. to conserve natural resources and wildlife f. to preserve and promote social and cultural values c. to help the weaker and backward sections of the society b.

END .

GROUP 8 Moises Calastravo Rancette Ancheta Mylene Garcia Kryzza Layus Mae Dawn Sagun .