Economics Condition
Offshoring - Moving a certain business process to another country
Ex. Iphone’s production to China
Reshoring - Bringing back the business process from foreign country back to its origin/domestic.
Ex. Ford offshoring to China and now bring it back to US.
Legal Political Condition
Internet censorship - the deliberate blockage and denial of public access to information posted on the Internet.
Ex. Google and Yahoo at China
Technological Condition
Technological development affect everything from the way we work to how we live and how we raise our children.
Example: The existence of 3D technology
Natural Condition
We expect organization and their managers to help preserve and respect the environment.
Example : BP oil spills in gulf of Mexico
Is composed of the organizations, grups, and persona with whom and organization interacts and conduct business
Source:https://www.slideshare.net/muhammadsyukhrishafee/external-environment-and-organizational-culture
The specific enviroment
Includes the people and groups with whom and organization interacts
Stakeholders
Are the person, groups, and institutions directly affected by an organization
Stakeholder is consisded by customer,supplier,competitor,regulator, and owner
Value Creation and Competitive Advantage
source : https://www.slideshare.net/muhammadsyukhrishafee/external-environment-and-organizational-culture
Competitive advantage can be acheived through cost
Competitive advantage can be achieved through quality
Competitive advantage can be achieved through delivery
Competitive advantage can be achieved through flexibility
Environmental Uncertainty, lack of complete information
The greater the environmental uncertainty, the more risk taking required
Two dimensions :
Degree of complexity
Rate of change
Complex and dynamic environments are the most challenging