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General and specific environment
Transcript of General and specific environment
What is it refering to?
External environment: It refers to force and institutions outside organization that potentially affect an organizations perfomance.
According to the degree of specificity?
General environment: The factors and conditions (such as economic, legal, political, and social circumstances) that generally affect everyone in an industry or market in more or less similar manner.
Specific environment: The part of the environment that is directly relevant to the achievement of an organization's goals.
Economic conditions: It includes the impact of economic factors like Interest rates,inflation,changes in disposable income and the stage of general business cycle.
Political/legal conditions: Federal,state and local government influence what organization can and can not do.
Socio-cultural conditions:Managers must adapt their practices to the changing expectations of the society and their life style.
Demographic Conditions: Trends in the physical characteristics of population such as gender,age,level of education,income,geographical location.
Technological: It is changing the ways the organization are operating, so businesses must address this issue and its impact on performance of organization.
Ecological: Aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.
That is directly relevant to achievement a goal
1) Customers. They represent potential uncertainty to an organization.
Their taste can change,they can become dissatisfied with organization’s product or service.
2) Competitors: Organizations can not ignore its competitors.
Managers must be prepared to respond to competitors policies regarding pricing new products, services offered and so on.
3) Suppliers: Any party that provides input for the business. E.g financial institutions are provider of money
Managers need to have steady and and reliable flow of inputs to meet the goals
4) Pressure groups: Managers must recognize the special interest groups that attempt to influence organization
The degree of change and complexity in an organizations environment.
Degree of change: If the components of in an organization environment changes frequently we call it dynamic environment.
If the change is minimal we call it stable.
Environmental complexity: number of components in an organization environment and extent of an organization knowledge about its environmental components.
Complexity is measured in terms of the knowledge and an organization needs to have about its environment.
Fewer competitors, customers,suppliers governmental institutes,less complex environment and thus less uncertainty.
Seat: Spanish Society of passenger cars, S. A. or more commonly known as SEAT.
This company was born on 29th May in 1950 , they invested first a capital of 600 million pesetas, distributed as follows: 51 %, belonged to the INI file; 42 %, banks Urquijo, Banesto, Bilbao, Vizcaya, Hispanic American and Central; the remaining 7% was FIAT. Was appointed chairman of the new company to D. José Ortiz echagüe.
Due to the crisis in Seat in the 1980s starts to search for a partner being the June 18, 1986 when Volkswagen has 50% of capital of Seat; The December 23, 1986: Volkswagen holds 75% of Seat; in 1990: Volkswagen has full powers on Seat.
This group also belong the following companies: Volkswagen, Audi, Skoda, Scania.
General Environment SEAT:
Socio-cultural factors: In the early seventies ------› SEAT took his first steps in motor racing formula creating national Spanish circuits. And is currently present in major competitions such as WTTC and ETTC.
Politico-Legal Factors: The state itself create a monitoring both quality and product safety. Vehicles must pass the tests EuroNCAP (European New Car Assessment). As one of the requirements for the sale of vehicles.
Economic factors: The balance of last year SEAT: 412,946 vehicles produced. Total Sales: 5.571 billion euros. Profit after tax of 169 million euros. However, if these results are deducted the consolidation of the dividends, extraordinary income and exemptions and deductions, the benefit of Seat stands at 23 million euros last year.
Technological Factors: One of the major advances in the company's Seat trains transport 80,000 vehicles a year from its factory in Martorell to the port of Barcelona, thanks to a direct rail link has been put in place and prevents the circulation of 25,000 trucks and emission of 700 tons of carbon dioxide a year.
Politica de I+D: Create new cars requires innovative approaches. And you do not talk about the importance of Research and Development (R & D) at the time of making vehicles today ready for tomorrow.
Specific Environment SEAT:
Customers: SEAT customers are varied depending on the model car chosen. In these last years SEAT opted for draw sports models, these models are designed for young people aged between 18 and 40 years old.
Competitors: Nowadays the competition in the automobile sector is enormous, apart from other things, the Economic crisis has fallen prices and car sales decreases. The competitors of SEAT are all brands of cars directed toward young people like for example, SKODA, KIA, OPEL, FORD, ETC ...
Suppliers: SEAT gets raw materials of very different types and, depending on where you are in your factory has a few suppliers or others. In these times of economic crisis, SEAT has to be very careful when choosing suppliers already that some are going through difficult situations and can leave you without stock at any time.
Credit Entity: These entities decisively influence because cars are consumer goods, and the people need financing to buy it, credit institutions are fundamental to enable people to buy cars. In the case of SEAT the banking situation in Spain and in all the world is not good but Seat achieved increase sales and revenues in last year.
SEAT is competing with a lot of companies in a very aggressive market and SEAT is surviving thanks to good research about general and specific environment.