Understanding economic and environmental factors that affects an organization

1. SOCIO-SOCIO-
ECONOMIC ANDECONOMIC AND
ENVIRONMENTALENVIRONMENTAL
ASPECT OF ANASPECT OF AN
ORGANIZATIONORGANIZATION
BY: CHELDY SYGACOBY: CHELDY SYGACO ELUMBA-ELUMBA-
PABLEO,MPA;LLBPABLEO,MPA;LLB

2. SOCIOSOCIO
from the word sociologyfrom the word sociology
means the science ofmeans the science of
society involving socialsociety involving social
interactions, social acts,interactions, social acts,
social relationship, socialsocial relationship, social
organizations, socialorganizations, social
structures and socialstructures and social
processprocess
BY: CHELDY SYGACO ELUMBA-PABLEO,MPA;LLB

3. ECONOMICSECONOMICS
is concerned with human activitiesis concerned with human activities
related to production, consumption andrelated to production, consumption and
distribution of goods, services anddistribution of goods, services and
wealth within societies as well aswealth within societies as well as
commercial exchange. It usescommercial exchange. It uses
mathematical methods to predictmathematical methods to predict
changes in economic indicators.changes in economic indicators.
Statistics on gross national productsStatistics on gross national products
per capita income, savings and credit,per capita income, savings and credit,
investments, trade, balance orinvestments, trade, balance or
imbalance, capital formation andimbalance, capital formation and
economic cycles that belong to theeconomic cycles that belong to the
realms of economic but these figuresrealms of economic but these figures
are reflections of individual and groupare reflections of individual and group
behavior is economically motivated.behavior is economically motivated.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

4. SOCIO-SOCIO-
ECONOMICSECONOMICS
may defined as themay defined as the
monetary flow of amonetary flow of a
certain community. Itcertain community. It
involves savings, loans,involves savings, loans,
expenditures, production,expenditures, production,
consumption, taxes,consumption, taxes,
infrastructures,infrastructures,
employment andemployment and
services rendered.services rendered.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

5. ““4 MAJOR ENVIRONMENTAL4 MAJOR ENVIRONMENTAL
ASPECTS THAT AFFECTSASPECTS THAT AFFECTS
AN ORGANIZATION”AN ORGANIZATION”
 1. The ups and downs1. The ups and downs
of economy.of economy.
 2. The changing2. The changing
attitudes of theattitudes of the
customers.customers.
 3. The requirements3. The requirements
of the governmentof the government
agencies.agencies.
 4. Inflated cost of4. Inflated cost of
energy, materials andenergy, materials and
labor.labor.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

6. ““2 TYPES OF2 TYPES OF
ENVIRONMENT”ENVIRONMENT”
 1.1. INTERNALINTERNAL
ENVIRONMENT-ENVIRONMENT-
composed of thecomposed of the
owners/manager,owners/manager,
employees andemployees and
stockholders.stockholders.
 22. EXTERNAL. EXTERNAL
ENVIRONMENT-ENVIRONMENT-includesincludes
the unions, suppliers,the unions, suppliers,
competitors, public interestcompetitors, public interest
associations,associations,
protest groups, andprotest groups, and
government agencies. Itgovernment agencies. It
also composed of directalso composed of direct
and indirect-actionand indirect-action
elements.elements.BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

7. DIRECT-ACTIONDIRECT-ACTION
ELEMENTSELEMENTS
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

8. CONSUMERSCONSUMERS
they are the directthey are the direct
persons affected by anypersons affected by any
change brought aboutchange brought about
by organizations orby organizations or
business firms.business firms.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

9. COMPETITORSCOMPETITORS
closely linked with theclosely linked with the
customers environment arecustomers environment are
the type, number andthe type, number and
behavior of thebehavior of the
organizations competitors.organizations competitors.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

10. SUPPLIERSSUPPLIERS
every organization takes inevery organization takes in
raw materials, servicesraw materials, services
energy, equipment andenergy, equipment and
labor from thelabor from the
environment and usesenvironment and uses
them to produce its output.them to produce its output.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

11. LABORLABOR
SUPPLIERSSUPPLIERS
dealt within a similardealt within a similar
fashion through personnelfashion through personnel
or human resourceor human resource
specialist.specialist.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

12. FINANCIALFINANCIAL
INSTITUTIONSINSTITUTIONS
most organizationsmost organizations
depends on a variety ofdepends on a variety of
financial institutions suchfinancial institutions such
as commercial banks,as commercial banks,
investment banks,investment banks,
insurance companies toinsurance companies to
maintain and expandmaintain and expand
their activities.their activities.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

13. GOVERNMENTGOVERNMENT
AGENCIESAGENCIES
are always involved inare always involved in
any organizations orany organizations or
business firm tobusiness firm to
establish its ground rulesestablish its ground rules
within which industrywithin which industry
must operate.must operate.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

14. SHAREHOLDERSSHAREHOLDERS
AND BOARD OFAND BOARD OF
DIRECTORSDIRECTORS
they affects thethey affects the
action taken by anaction taken by an
organization.organization.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

15. INDIRECT-ACTIONINDIRECT-ACTION
ELEMENTSELEMENTS
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

16. TECHNOLOGICATECHNOLOGICA
L VARIABLESL VARIABLES
play a significant role inplay a significant role in
determining whatdetermining what
products and servicesproducts and services
will be produced, whatwill be produced, what
equipment will be usedequipment will be used
and howand how
various operations will bevarious operations will be
managed.managed.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

17. ECONOMICECONOMIC
VARTIABLESVARTIABLES
this is the major cost-this is the major cost-
such as “labor” and awsuch as “labor” and aw
materials” that thematerials” that the
organization incur.organization incur.
Since cost vary fromSince cost vary from
time to time, managerstime to time, managers
must assess prospectsmust assess prospects
for price stability orfor price stability or
inflation.inflation.
BY: CHELDY SYGACO ELUMBA-

18. SOCIO-SOCIO-
CULTURALCULTURAL
VARIABLESVARIABLES
the values andthe values and
customs of a society,customs of a society,
establish guidelineestablish guideline
that determine howthat determine how
must an organizationmust an organization
and managersand managers
willwill
operate.operate.BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

19. POLITICAL-POLITICAL-
LEGALLEGAL
VARIABLESVARIABLESthis trend increasethis trend increase
when people call uponwhen people call upon
government to protectgovernment to protect
consumers, preserveconsumers, preserve
the environment andthe environment and
put an end toput an end to
discrimination indiscrimination in
employment,employment,
education,education,
andand
BY: CHELDY SYGACO ELUMBA-

20. INTERNATIONAINTERNATIONA
L VARIABLESL VARIABLES
present opportunitiespresent opportunities
and challenges and hasand challenges and has
potential for movingpotential for moving
from an indirect tofrom an indirect to
direct-action factor.direct-action factor.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

21. ** TRENDS IN THETRENDS IN THE
EXTERNALEXTERNAL
ENVIRONMENTENVIRONMENT**
The most commonThe most common
component that influencedcomponent that influenced
the consumers/customersthe consumers/customers
areare “MEDIA”“MEDIA” with access towith access to
more information than evermore information than ever
before have created a massbefore have created a mass
audience of well-informedaudience of well-informed
customers.customers.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

22. *INFLUENCING AND THE*INFLUENCING AND THE
INDIRECT-ACTIONINDIRECT-ACTION
ENVIRONMENTENVIRONMENT**
Managers influence consumersManagers influence consumers
through media orthrough media or
“advertisements”“advertisements”. And through. And through
this, they tendthis, they tend
to established cooperative relationsto established cooperative relations
and negotiate with suppliers toand negotiate with suppliers to
ensure prompt delivery of neededensure prompt delivery of needed
materials and accepted prices.materials and accepted prices.
They can lobby their stateThey can lobby their state
capitals.capitals.
Managers gain passage ofManagers gain passage of
favorable legislations and forestallfavorable legislations and forestall
the passage of undesirable lawsthe passage of undesirable laws
and regulations.and regulations.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

23. *FORECASTING AND*FORECASTING AND
THE INDIRECT-THE INDIRECT-
ACTIONACTION
ENVIRONMENTENVIRONMENT**
Enables the managers to monitorEnables the managers to monitor
environmental trends continually,environmental trends continually,
hoping by this means to develop ahoping by this means to develop a
usable understanding of the externalusable understanding of the external
environment.environment.
By using this techniques managersBy using this techniques managers
can anticipate changes in thecan anticipate changes in the
government regulations, publicgovernment regulations, public
attitudes, suppliers’ cost, availability ofattitudes, suppliers’ cost, availability of
raw materials, actions of competitorsraw materials, actions of competitors
and so on to be prepared withand so on to be prepared with
alternative course of action andalternative course of action and
concrete plans for future actions.concrete plans for future actions.
BY: CHELDY SYGACO ELUMBA-

24. *PLANNING*PLANNING
ORGANIZATIONALORGANIZATIONAL
DESIGN ANDDESIGN AND
ENVIRONMENT*ENVIRONMENT*
The most important way aThe most important way a
manager adjust to themanager adjust to the
external environmentexternal environment
through development andthrough development and
implementation of plans forimplementation of plans for
the organizations.the organizations.
BY: CHELDY SYGACO ELUMBA-
PABLEO,MPA;LLB

25. THANK YOU FOR
READING!
CHELDHAYE