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Understanding Organizational Environments and Business Ethics
- 3. Content (1st quarter) Chapter1: Nature and Concept of Management Chapter 2: The Firm and Its Environment Chapter 3: Planning Chapter 4: Organizing
- 6. Organizational Environments: Definition & Types Organizational environment – forces or institutions surrounding an organization that affect performance, operations and resources.
- 7. Environmental Scanning Organizational environment must be scanned so as to determine development and forecasts of factors that will influence organizational success. Environmental scanning – refers to possession and utilization of information about occasions, patterns, trends and relationships within an organization’s internal and external environment. There are three kinds of environmental scanning: ad hoc, regular and continuous scanning LC 4
- 8. • The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering; • *Ad hoc scanning – short term, infrequent examinations usually initiated by a crisis • *Regular scanning – studies done on a regular schedule (e.g. once a year) • *Continuous scanning – continuous structured data collection and processing on a broad range of environmental factors
- 10. •External environment – consists of legal, physical, economic, technology, social, political culture; it includes opportunities and threats of an organization
- 11. The outer layer that is widely dispersed and affects the organization indirectly. These dimensions influence the organization over time but often are not involved in day- to-day transactions with it.
- 12. PESTLE The acronym PESTLE is used to describe a framework for the analysis of macro- environmental factors expressed as” Political Economic Social & Technological + Legal and Environmental LC 5
- 13. • 1.
- 14. • Political: These factors determine the extent to which a government may influence the economy or a certain industry.
- 15. • Economic - Represents the general economic health of the country or region in which the organization operates. Consumer purchasing power, the unemployment rate, and interest rates are part of an organization’s economic environment
- 16. •Social - representing the demographic characteristics, norms, customers, and values of the population within which the organization operates.
- 17. Technological - this includes scientific and technological advancements in a specific industry as well as in society at large. This dimension created massive changes for organizations in all industries.
- 18. • Legal – this factors include current and impending legislation that may affect the industry in areas such as employment, competition, and health and safety.
- 19. • Environment - that includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate.
- 21. •It indicates the sectors of the external environment that has a direct and immediate impact on the organization.
- 22. •CUSTOMERS •Related to individuals and entities that acquire goods or services from the organization.
- 23. •COMPETITORS •Other organization that monitors and responds to in the battle of resources and markets. Other organization in the same industry or type of business that provide goods or services to the
- 24. SUPPLIERS Related to individuals and entities who provide raw materials, goods, and services needed by the organization in the production of outputs.
- 25. • Pressure Groups - Special interest groups that try to exert influence on the organization’s decisions or actions. • Investors - Provide the company with the financial support it needs • Employees - Comprised of those who work for another of for an employer in exchange of salaries/wages or other considerations.
- 26. • Organizational environment consists of both external and internal factors. • Internal Environment – consists of organization’s owners, board of directors, regulators, physical work environment and culture; it includes strengths and weaknesses of an organization. • the entities, conditions, events, and factors within the organization that influence choices and activities.
- 27. • The SWOT Analysis enables organizations to identify both internal and external influences; its primary objective is to help organization develop full awareness of all the factors involved in decision making; it stands for Strengths Weaknesses Opportunities Threats
- 29. STRENGTH is any kind of resource or capability which gives the organization an advantage over other organizations in offering their service or goods. WEAKNESS is a lack of resource or capability which makes the organization vulnerable to the competition.
- 30. It is an OPPORTUNITY if it is a development that is favorable to the operations of the company and will most likely improve its performance and prospects. It is a THREAT if it is an unfavorable development in any element in the general environment which can slow down the performance of the company.
- 32. Local and International Business Environment International Business Environment – can be defined as the environment in different sovereign countries; It involves cross-border transactions of goods and services between two or more countries. LC 6
- 33. • Local Business Environment – can be defined as the environment in the domestic / local setting
- 34. Chronemics – the study of how time affects communication, it is used to understand the use of time in differing cultures, it’s effect in technology and time management.
- 35. Anthropologist Edward T. Hall, as cited by Schermerhorn (2008), Noted that the way people approach and deal with time varies across cultures…. MonochronicCultures - time is scheduled, arranged, and managed - refer to cultures wherein people tend to do one thing at a time, also these cultures emphasize punctuality and sticking to set rules.
- 36. • PolychronicCultures • - a more fluid approach is taken in scheduling time. • - relationship is valued over time and material things • - more relationship oriented rather that emphasizing punctuality • – refer to culture that are more flexible as regards time; accomplishing many different things at once is also common for these cultures..
- 37. Monochronic • Do one thing at a time • Concentrate on the job at hand • Think about when things must be achieved • Put the job first • Emphasized Promptness Polychronic • Do many things at once • Are easily distracted • Think about what will be achieved • Put relationship first • Base promptness relationship factors
- 38. Being a Monochronic or Polychronic? NONE! Find Balance in both
- 39. LIFE teaches us to make good Use of TIME, While TIME teaches us the VALUE of LIFE
- 40. •CulturalIntelligence – an individual’s ability to favorably receive and adjust to an unfamiliar way of doing things.
- 41. • Geert Hofstede Five Cultural dimensions he studied: • 1. Power Distance • 2. Uncertainty avoidance • 3. Individualism-Collectivism • 4. Masculinity-Femininity • 5. Time Orientation
- 42. • 1.Power Distance – the degree to which a society accepts or rejects the unequal distribution of power among people in organizations and the institutions of society.
- 43. High Degree of Power Distance will be more accepting of power division. Low Degree of Power Distance would involve less stiffness and more ease of power flow.
- 44. •2. Uncertainty avoidance – the degree to which society is uncomfortable risk, change and situational uncertainty.
- 45. • High Degree – uncomfortable with change and uncertainty.. • Low Degree – more open to ambitious changes and risky decisions •
- 46. •3. Individualism-Collectivism – the degree to which a society emphasizes individual accomplishment versus collective accomplishment.
- 47. High Degree : Individualism “ I am” - present the need to succeed as an individual with very little concern with the group. Low Degree : Collectivism “we are” - emphasis on succeeding as a group or community.
- 48. • 4. Masculinity-Femininity – the degree to which society values assertiveness and feelings of material success vs concern for relationships
- 49. High Degree : Masculinity - Characteristics: Achievement, Heroism, Material Rewards and Assertiveness.. Low Degree : Femininity - Characteristics : Cooperation, Modesty, Caring for the weak and Quality of Life
- 50. •5. Time Orientation – the degree to which a society emphasizes short term thinking versus greater concern for the future or long-term thinking.
- 51. Long Term orientation dimension can be interpreted as dealing with society’s search for virtue. Short Term orientation generally have a strong concern with Establishing the absolute truth.
- 53. Why do organizations care so much about factors in the external environment?.
- 54. •UNCERTAINTY means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes.
- 55. 1. Boundary-spanning roles. 2. Inter-organizational partnerships 3. Mergers and joint ventures
- 57. 2. INTERORGANIZATIONAL PARTNERSHIPS An increasingly popular strategy for adapting to the environment is to reduce boundaries and increase collaboration with other organizations. Companies are joining together to become more effective and to share scarce resources. A way of coupling the assets of two separate entities to produce something of greater value. Successful partnerships occur between two companies that deal in similar but not identical businesses.
- 63. •Business creates wealth for the economy and society by generating income through its activities. •Businesses also create value through its relationships with its stakeholders. These relationships are imbued
- 64. •ETHICS • – deals with the morality of one’s actions. It refers to what a manager holds as good and bad, and how he applies these beliefs to the decisions and actions he makes.
- 65. •CORPORATE SOCIAL RESPONSIBILITY •– the obligation of a manager to operate the business in ways that are both beneficial to the company and the society.
- 69. • Stage 1 Traditional Society • – subsistence, barter, agriculture • Stage 2 Transitional Stage • – specialization, surpluses, infrastructure • Stage 3 Take Off • – industrialization, growing investment, regional growth,
- 70. • Stage 4 Drive to Maturity – diversification, innovation less reliance on imports, investment • Stage 5 High Mass Consumption – consumer oriented, durable goods, flourish, service sector becomes dominant
- 71. • A total process which includes not only economic growth or the increase in the given amount of goods and services produced by the country’s economy, but also considers the social, political, cultural, and spiritual aspects of the country’s growth.
- 72. •Increase in the given amount of goods and services produced by the country’s earning.
- 88. • According to Robbins and Coulter(2009) Business Organizations may be traditional (simple, functional, divisional, profit or non profit) or open/flexible. 1. Simple Business Organization • - these refer to business organizations with few departments, centralized authority with a wide span of control, and with few formal rule and regulations.
- 89. • 2. Functional Business Organization • - group together those with similar or related specialized duties that introduced the concept of delegation of authority to functional managers. • 3. Divisional Business Organization • - made up of separate business units that are semi – autonomous or semi – independent, with a division head responsible for his or her units performance.
- 90. • 4. Profit Business Organization • - designed for the purpose of achieving their organizations’ mission, vision, goals, and objectives and maintaining their organizational stability trough income generationand profit making activities
Editor's Notes
- Why are organization affected with their environments
- The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering; *Ad hoc scanning – short term, infrequent examinations usually initiated by a crisis *Regular scanning – studies done on a regular schedule (e.g. once a year) *Continuous scanning – continuous structured data collection and processing on a broad range of environmental factors
- The environmental scanning process entails obtaining both factual and subjective information on the business environments in which a company is operating or considering entering; *Ad hoc scanning – MEANS IN A PARTICULAR PURPOSE ONLY. USED IN BUS. INTELLIGENCE TO ANSWER SPECIFIC QUESTIONAT A SPECIFIC TIME. *Regular scanning – studies done on a regular schedule (e.g. once a year)AQUIRING, ANALYZING EVENTS AND TENDS IN ON THE BUS.ENV. IN WHICH THE COMPANY OPERATES OR WANTS TO ENTER. *Continuous scanning – continuous structured data collection and processing on a broad range of environmental factors. DATA COLLECTION IN ORDER TO PLAN AND STRATEGIZE FOR AN ORGANIZATION
- External factors -> Political – governmental activities and political conditions that may affect your business Macroeconomic – factors that affect the entire economy, not just your business, like interest rates, unemployment rates, currency exchange rates, recession Microeconomic – market size, demand, supply Social – sociological factors related to general society and social relations like changes in fashion and consumer preferences Technological – technological innovations can increase productivity or pose existential threat to business
- THESE MUST BE CONSIDERED MANAGERS PLAN, ORGANIZE, STAFF, LEAD, AND CONTROL THEIR RESPECTIVE ORGANIZATIONS. INFLATION, RATES OF INTEREST, CHANGING OPTIONS IN STOCK MARKET AND PEOPLE SPENDING HABITS ARE SOME These factor cannot be controlled by the business, but can influence decision making.
- Political factors – government regulations and legal issues; e.g. tax policy, employment laws, trade and tariff restrictions Economic factors – economic factors affect the purchasing power of customers; e.g. economic growth, interest rates, exchange rates, inflation rate Social factors – includes demographic and cultural aspects of the external macro-environment; e.g. health consciousness , population growth rate, age distribution Technological factors – lower barriers to entry, reduce minimum efficient production levels, influence outsourcing decisions; r&d activity, automation, technology incentives
- Political Example -, a government may impose a new tax or duty due to which entire revenue generating structures of organizations might change Political factors include tax policies, Fiscal policy, trade tariffs etc. that a government may levy around the fiscal year and it may affect the business environment (economic environment) to a great extent Government policy, political stability or instability, bureaucracy, corruption, competition regulation, foreign trade policy, tax policy, trade restrictions, labor/environmental/copyright/consumer protection laws, funding grants & initiatives, etc.. Political factors relate to how the government intervenes in the economy. ...
- For example, a rise in the inflation rate of any economy would affect the way companies’ price their products and services. Adding to that, it would affect the purchasing power of a consumer and change demand/supply models for that economy. Economic factors include inflation rate, interest rates, foreign exchange rates, economic growth patterns etc. It also accounts for the FDI (foreign direct investment) depending on certain specific industries who’re undergoing this analysis. Economic factors include economi cgrowth, interest rates, exchange rates, inflation rate. These factors greatly affect how businesses operate and make decisions.
- Most companies analyze the population growth and age structure. They also show interest in consumer attitudes and lifestyle changes.There is no doubt that the society is continually changing. The tastes and fashions are a great example of this change. One of the most significant differences is the growing popularity of social media. Social networking sites like Facebook have become very popular among the younger people. The young consumers have grown used to mobile phones and computers. Filipino customers are now conscious about the importance of avoiding fatty foods, so many food companies now make sure that the product they offer are cholesterol free or are low cholesterol, in doing so they avoid losing their customers such as the age, gender and income of the people within thepopulation MAY ALSO INFLUENCE SOME MANGERIAL DECISIONS IN ORGANIZATIONS
- Today, computer networks, internet access, handheld devices, videoconferencing capabilities, cellphones, and laptops are the minimum tools for doing business. A new generation allows users to check their corporate email, daily calendars, business contacts, and even customer orders from any location with a wireless network. Some companies updated security codes that enable employees to log onto their networks SOPHISTICATED INFORMATION SYSTEM HAVE RAPIDLY CHANGED THE WAYS THAT BUSINESS IS CONDUCTED IN THE 21sT CENTURY
- For example, consumer laws- aim to protectthe rights of consumers. For example, a government may require businesses to disclose detailed information about products—particularly in areas where safety or public health is an issue, such as food., safety standards - constitutional mandate to safeguard the worker's social and economic well-being as well as his physical safety and health., labor laws - here are various laws and legal factors that affect businesses. Some of these include organizational, securities, employment, contract, commercial, immigration, consumer protection, tax, and industry-specific laws and regulations. difference between Political and Legal factors is that Political refers to attitudes and approaches, whereas Legal factors are those which have become law and regulations. Legal needs to be complied with whereas Political may represent influences, restrictions or opportunities, but they are not mandatory. Political factors relate to how the government intervenes in the economy. ...
- POLITICS – Bureaucracy. Foreign trade policy, tax policy, trade restrictions ECONOMIC – Economic Trends, growth rates, industry growth, taxation, inflation, interest rate, public spending power, SOCIAL – attitudes and shared beliefs about a range of factors including work, leisure, money, customer service, imports, religion, family size, trends TECHNOLOGICAL – automation, legislation around tech. research and innovation, technology and development. LEGAL – consumer protection – labor, health and safety ENVIRONMENTAL – weather, climate change, recycling and waste management
- Patients are the customers of hospitals Students are the customers of schools Travelers of airlines With high school and college students representing billion consumer spending market, it’s serious business for managers at companies such as Apple, Coca-cola, etc.
- Myspace keeps a close eye on Facebook’s growing popularity. --- both are battling it out for market leadership and advertising market share. Rival FIRMS, NEW ENTRANTS, SUBSTITUTES
- SUPPLIERS could also be a threat, pwede nilang ipitin ang raw materials if alam nila sila lang ang merong ganun materials They could also be possibly be a new entrants, then will become a competitor Many companies are using fewer suppliers and trying to build good relationship with them so that they will receive high-quality parts and materials at lower prices. The relationship between manufacturers and suppliers has traditionally been an adversarial one, but managers are finding that cooperation is the key to saving money, maintaining quality, and speeding products to market.
- PG – pressure from the Food and Drug Administration on some department store and drug stores led them to stop selling beauty products containing lead and to sop ordering or importing such products from their suppliers The company of course, cannot exist without them thus thet greatly influence Org’l Mgt. TL, ML,LL managerial decisions are all influenced, in one way or another by the investors or owners of org. Branching out , offering new products and services and applying for needed loans are all affected by the investors or owners way of thinking.
- Employee behavior the organization’s culture Mission statement Leadership style - Refers to the forces/ factors within the organization which may affect either positively or negatively the performance of the orgs.
- e.g. Strength – maraming recruited basketball players, tall and willing to become athletes Weaknesses – walang coordination, hindi magkakakilala, needs practice Opportunities – may 5 basketball court sa loob ng campus Threats – no ball, other varsity players outside/inside the school
- The exchange of goods and services among individuals and businesses in multiple countries. 2. A specific entity, such as a multinational corporation orinternational business company that engages in business among multiple countries.
- A type of business that is based in a local area and provides a variety of commodities, goods, products or services that are needed to a local population.Local business differs from a regional business, national business or international business.
- There is one factor that we always share we have equal access to time. No matter who we are each day we have 86,400 seconds to use, loose, spend or save . Not everyone or every culture use the value of time the same way , depending on where you live in the world you can develop or how can you conduct each day
- Completing a task with a carefully planning Highly emphasized on following the schedule. High concentration on the job at hand Low commitment to relationship WESTERN COUNTRIES: America, Britain, Germany. ASIAN COUNTRIES : Japan, Singapore, South Korea Mono People tend to be low context -
- It may be frustrating for one who is influence by a monochronic culture to be dealing with one who is influenced by a polychronic culture if he or she does not posses cultural intelligence Fluid approach – changing their availability LATIN AMERICA : Arab and African Countries ASIAN COUNTRIES : China, Philippines, Pakistan Poly People tend to be High Context
- Which is better????
- UNDERSTANDING THE LOCAL AND INTERNATIONAL BUSINESS ENVIRONMENT OF THE FIRMS REQUIRES MANAGERS OF ORGANIZATION TO SHARPEN THEIR CULTURAL INTELEGENCE Works effectively across cultures CULTURE – is the collective programming of the mind: culture is us. Culture is learned Norms and values are learned in childhood, they can be collective or individual THIS WILL ENABLE THEM TO DEVELOP THEIR ABILITY TO ACCEPT AND ADAPT TO DIFFERENT CULTURES. BOTH LOCAL AND INTERNATIONAL, THAT MAY AFFECT THE ORGANIZATION TO WHICH THEY BELONG.
- Understanding the local and international business environment of the firm requires managers of organization to sharpen their Cultural Intelligence
- Example: India and Philippines have high power distance, while the US and Australia have low power distance, the use of the term “sir” and “Mam” to refer to the boss /superior by subordinate employees in the Phils. shows respect for authority figures or high power distance. In the US, subordinates just use the name or nickname of the boss when addressing him, or her indicating low power distance. is the strength of societal social hierarchy—the extent to which the lower ranking individuals of a society accept and expect that power is distributed unequally It basically measures how a culture views power relationships between people. Cultures demonstrating high power distanceview power as distributed unevenly, according to a hierarchy of authorit
- 2. Example: Managers in US are risk taker. They introduce product easier for them to do than from Japan and France. Filipinos are seguristas that are afraid of taking risks within business endeavors in the market
- “if it Aint broke, don’t fix it! Change is good “Go with the flow
- 3. Example: Individual (US) and Australia are characterized as “I” and “ME” culture where employees prefer to work alone without help of each other VS Philippines, Mexico, Thailand exhibit collectivism or preference for group or team work. Changing job in order to grow as an individual Staying in a companyto help your team. Japanese culture type
- Changing job in order to grow as an individual Staying in a companyto help your team. Japanese culture type
- 4. Example: Japanese don’t hesitate to say what they want and don’t accept defeat (Masculinity) while Filipino will just keep quit` and accept defeat if what they want is not acceptable to others (femininity) Tough vs. Tender The Japanese and Mexicans do not hesitate to push or express what they want, unmindful of hurting others’ feelings, thus showing masculinity. Filipinos, Thais, and Swedes would rather keep quiet and accept defeat if what they want is not acceptable to others, thus, exhibiting femininity
- Masculine examples: Plumbing, Engineering and Attorney at Law Femininity examples: Obstetrician. Hr, and nursing
- Example: The Americans, who are risk takers prefer short term thinking, on the other hand, Filipinos and the Japanese, who are not risk takers are long term thinkers.. Manana Habit which is part of local Filipino Culture and practiced by some Filipino, workers. It is counter productive since it encourages the postponement of performing tasks that can be done immediately to another day. The Americans, who are risk-takers, prefer short-term thinking. On the other hand, Filipinos and the Japanese, who are not risk-takers, are long-term thinkers Question.. 1. Which is valued by members of a Filipno society masculinity anf femininity?
- Virtue – behavior showing high moral standards
- The reason is that the environment creates uncertainty for organization managers, and they must respond by designing the organization to adapt to the environment
- Ex. NOKIA --- they focused more on the hardware.. They refused to change the OS.. The android phones. They believed that what more important is the design. Then, launched the ANDROID phones and iphones. When external factors change rapidly, the organization experiences high uncertainty; Ex. Telecommunications and aerospace firms Computer and electronic companies E-commerce organizations that sell products and services over the internet -- companies have to make an effort to adapt to the rapid changes in the environment.
- PETRON AND TOYS MANUFACTURER -- PROMOTION MCDO AND TOYS MANUFACTURER as a way of coupling the assets of two separate entities to produce something of greater value Inter-organizational partnerships lead to symbiotic collaboration that is veryimportant for the survival and growth of businesses. ... Smaller business cannot adapt and change because of limited budget, staff and expertise. An interorganizational system (IOS) is a system between organizations, or "shared information system among a group of companies." The most common form ofinterorganizational system is electronic data interchange, which permits instantaneous computer-to-computer transfer of information.
- Merger = two companies come together "permanently" for mutual gains or to reduce competition. Acquisition = one company buys another company which may or may not be doing well. ... after the project/job is completed the joint venture is dissolved When a company seeks to expand or grow its operations, it may choose to join with another company so that it may access additional resources and achieve mutually beneficial goals. While mergers and joint ventures both involve two or more distinct companies working together to achieve a common goal, PCI BANK AND BDO, THEY MERGED BUT USED THE BDO NAME The Banco de Oro-Equitable PCI Bank merger (2004–2006) was a plan by the SM Group of Companies and Banco de Oro Universal Bank, then the fifth-largest bank in the Philippines, to merge with Equitable PCI Bank, the third-largest bank. Philippine Commercial International Bank
- Universal Robina Corp, founded by tycoon John Gokongwei, said Tuesday it was selling the rightsto manufacture and distribute Hunt’s products to Century Pacific Food’s Corp, the maker of Century Tuna and Argentina Corned Beef. The transaction, URC, said, would enable it to focus on its core snack food and beverage business. Universal Robina’s brands include Jack n Jill and C2 iced tea. SM Investments Corp (SMIC). in March said it was acquiring a 34.5-percent stake in 2GO, for its first foray into the fast-growing logistics business. The conglomerate, founded by the country’s richest man, Henry Sy, wants to adapt to the changing retail landscape. “Some people will like to order from the comfort of their living room, some go to the mall to socialize and interact with other shoppers. We are going to cater to different ways,” SMIC vice chairman Tersita Sy-Coson said. The Ayala Group said in February that it was acquiring nearly half of online retailer Zalora, as it expands into e-commerce. The fusion of physical and virtual spaces will create an “omni-channel retail experience,”according to Zalora, which plans to bring its “pop-up” stores to Ayala Malls. State-run Land Bank of the Philippines announced in November that it would acquire Philippine Postal Savings Bank and spin it off into a lender for overseas Filipino workers. Finance Secretary Carlos Dominguez said PostBank was in the best position to serve overseas workers, given its ties to the postal service.
- Managers create ethical organizations by incorporating moral reasoning into the decision making processes that affect their stakeholders.
- CEO – that is giving work opportunity to deaf/mute Charity or foundation that company is helping Free service like medical mission given to society --- all these without thinking of profit Nowadays, it is widely recognized that business should go beyond just making profits. Organizations, in as much as they get affected by the external environment, can also establish a kind of environment that is beneficial to individuals, business, and society. Indeed, businesses are serious about the impacts of their actions to society.
- Stage 1 Traditional Society – subsistence, barter, agriculture Stage 2 Transitional Stage – specialization, surpluses, infrastructure Stage 3 Take Off – industrialization, growing investment, regional growth, political change Stage 4 Drive to Maturity – diversification, innovation less reliance on imports, investment Stage 5 High Mass Consumption – consumer oriented, durable goods, flourish, service sector becomes dominant
- They rely on fishing and hunting of caribou for their existence. subsistence the action or fact of maintaining or supporting oneself at a minimum level. Basic needs Barter - exchange (goods or services) for other goods or services without using money. 2. A transitional period is one in which things are changing from one state to another. Specialization increases the amount of goods and services that people produce and consume. Examples: Different community workers specialize in the jobs they do. People also specialize when they divide the labor on an assembly line or in an office. Surplases an amount of something left over when requirements have been met; an excess of production or supply over demand. Infrastructure - he basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise. 3. the take-off” is defined as “the interval during which the rate of investment increases in such a way that real output per capita rises and this initial increase carries with it radical changes in the techniques of production and the disposition of income flows which perpetuate the new scale of investment and perpetuate there by the rising trend in per capita output. Industrialization - is the process in which a society transforms itself from a primarily agricultural society into the manufacturing of goods and services.
- drive to maturity. Rostow defines it "as the period when a society has effectively applied the range of modern technology to the bulk of its resources.“ Diversification is a corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market. Reliance - dependence on or trust in someone or something. 5. a durable good or a hard good is a good that does not quickly wear out, or more specifically, one that yields utility over time rather than being completely consumed in one use. Examples of consumer durable goods include automobiles, books, household goods (home appliances, consumer electronics, furniture, tools, etc.), sports equipment, jewelry, medical equipment, firearms, and toys. Examples of consumer durable goods include automobiles, books, household goods (home appliances, consumer electronics, furniture, tools, etc.), sports equipment, jewelry, medical equipment, firearms, and toys. Nondurable goods or soft goods (consumables) are the opposite of durable goods. They may be defined either as goods that are immediately consumed in one use or ones that have a lifespan of less than three years. Examples of nondurable goods include fast-moving consumer goods such as cosmetics and cleaning products, food, condiments, fuel, beer, cigarettes and tobacco, medication, office supplies, packaging and containers, paper and paper products, personal products, rubber, plastics, textiles, clothing, and footwear. Flourish (of a person, animal, or other living organism) grow or develop in a healthy or vigorous way, especially as the result of a particularly favorable environment:
- – is a process of bringing about changes in the economic and social structure of the economy. It involves economic structural changes which means the modernization of techniques of production.
- – is the sustained increase per capita real output of goods and services. The output of goods and services is measured in terms of Gross Nat’l Product (GNP). Economic growth is usually expected to result from economic development.
- THE FORM OF BUSINESS ORGANIZATIONS MAY DEPEND ON ITS PURPOSE, NATURE OF OPERATION AND RESOURCES. HOWEVER, A BUSINESS ORGANIZATIONS FORM MAY CHANGE WITH THE CHANGINGTIMES AND DEMANDS THEY PRESENT.
- Sole Proprietorship examples include small businesses, such as a single person art studio, a local grocery, or an IT consultation service. The moment you start offering goods and services to others, you form a Sole Proprietorship. It's that simple. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
- Change is constant and organizations continue to undergo various changes to ensure effectiveness, efficiency and relevance in the world of business..
- 2.Like personnel manager, sales manager, or financial manager but allows the CEO’s to retain authority for strategic decisions. 3. In other words each division has its own functional organization, and its own general manager; however the central headquarters management maintains responsibility for the delineation of organizational goals of the individual institution..