Bus Org a 04 | Stakeholder (Corporate) | Economics

The business organization and its environment

Module 04-The business organization and its environment 1

Stakeholders
• Groups or individuals directly or indirectly affected by an organization’s pursuit of its goals. • There are internal and external stakeholders.
Module 04-The business organization and its environment 2

Internal stakeholders
Employees • individuals responsible for work in an organization Shareholders and Board of Directors • owners • representatives of the firm’s various owners; voted to make decisions for the company
Module 04-The business organization and its environment 3

External stakeholders
Customers • exchange resources, usually in the form of money, for an organization’s products and services.

Module 04-The business organization and its environment

4

External stakeholders
Suppliers • provide the input/resources needed by the firm to produce its output.

Module 04-The business organization and its environment

5

External stakeholders
Competitors • companies that offer similar or alternative products or services

Module 04-The business organization and its environment

6

External stakeholders
Financial institutions • organizations that provide or lend funds needed by business for their operations or capital investments

Module 04-The business organization and its environment

7

External stakeholders
Government • aids and protects industries and the national economy • provides infrastructure, utilities, and security Special Interest Groups • use the political process to advance their position on particular issues
Module 04-The business organization and its environment 8

External stakeholders
The Media • provide general public with information, opinion, and entertainment on relevant issues Labor Unions • voice of the workers to top management • organized within the company or outside the organization
Module 04-The business organization and its environment 9

The STEP Environment
On national and international levels the organization is affected by these variables:

Social Technological Economic Political
Module 04-The business organization and its environment 10

Soci al Envi ronment
• demographics • lifestyle changes • social/cultural values Examples: • The rise of the “yuppy” • Overpopulation • Strong catholic influences
Module 04-The business organization and its environment 11

Technol ogi cal Envi ronment
• Advances in basic sciences • New developments in products, processes, and materials Examples: • the Internet • Biotechnology (genetics) • cellular mobile technology services
Module 04-The business organization and its environment 12

Eco nomi c Envi ronment
• monetary and fiscal policies of national and foreign governments • wages and employment Examples: • GNP/GDP • Liberalization trends • purchasing power of consumers
Module 04-The business organization and its environment 13

Poli ti cal Env iron ment
• laws, regulations, and policies • political processes Examples: • Elections • GATT and GATS • Zoning regulations
Module 04-The business organization and its environment 14

Bus ines s envi ronment
Social
competitors the media labor unions financial institutions

Technologic al
employees
customers suppliers government special interest groups

The Firm
shareholders and board of directors

Economi organization and its environment Module 04-The business

Political 15

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