Introduction
A variety of environmental factors can influence the management process. In some cases, the impact is minor. But ,in the other suituation an environmental factors can significantly alter management decisions.
Environmental factors affecting managenent
1. External and internal expectations
2. Competitive environment
3. Economic setting
4. Social and structural factors
External and internal expectations
There are numerous external and internal expectations that impact on the frame work if management. Executive tend to take actions that fulfil the the expectations of people both inside and outside the firm. Tradition; the customary way if doing something ,plays a major in management decisions making.while traditions is primary an internal expectations,a firms image with the public influence external expectations. The image of firms could impact on variety if management decisins. These could range from employees training decisions to merchandising practices.
Competitive environment
The competitive environment refers to the firms relative situation in the market places. It's includes such factors as how the firms rates in market share ,technological innovation,financial strength, involvement in growth industries ,and the development of it's human resource . All of these factors can play a major role in management decision making.
A firm might be financially strong, have good personnel and dominate it's industry; yet if the company is posituined in a declining industry , management may have to take aggressive action to move the firm into new expanding market. Similarly,a firm in a growth industry may lack the financial strengths to compete in the longrun . So management might consider a manager with another enterprises that will correct thus deficiency.
One of the major lessons any manager must learn is that the competitive environment is not set ,it is dynamic. To paraphrase the classical Maxim if the TV weather's firecast.” If you don't like the competitive environment that exist,just wait ,it will change soon” the real question for management is weather or not the new setting will be more favourable than the previous one.
Legal environment
All societies have some sort of formal legal system that regulates activities. The asset of legal mandates facing businesses is exceedingly complicated. And in some cases perhaps contraductory.
The legal environment for management consist of federal, state ,and local regulations ,as well as those of foreign nation's in which the business may operates ,some aspect if the legal environment have very broad goals ,which are the preservations if the competitive environment
Economic environment
Markets require purchasing power as well as people the available purchasing power in the economy depends on current income,prices,savings,Dept,and credit availability. Managers must pay close attention to major treads I income and consumer spendings patterns
Social cultural environment
Society shapes our beliefs, values and norms,people absorb almost unconsciously, a world view that defines their relationship to themself ,to others ,to organisatios ,to society,to nature and to the universe, managers must have good knowledge of these factors so as know how to operates.
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