CEO & Management Environment:
+ Environment is a combination of forces and institutions that impact and affect the activities
and results of operations of the business.
- Force: the power law of nature (economic / social / natural)
- Institutional: the impact of human subjectivity (laws / regulations / ...)
+ There are many approaches to different environments but this course focuses on the
environment of business organizations.
As we have three levels of environmental layers:
+ Macro Environment (MT Overall, the general MT)
+ Micro Environment (MT characteristics, competitive MT)
+ Internal environment (inside MT)
A. Macro-environmental factors:
a. Economic environment:
Gross Domestic Product (GDP), inflation, exchange rate and interest rates, wages and
b. Political Environment - law:
- Government: agencies supervise, maintain and protect law and protect national interests.
Regulatory role of macro-economy through fiscal policy, monetary, tax and spending
- Law: Giving the regulations to allow or not allow, or the binding, requiring businesses to
+ To take advantage of opportunities and minimize risk, companies must capture the views,
rules, priorities, expenditure programs of Government.
+ Establish a good relationship, maybe even make lobbying when necessary.
c. Cultural environment - social
- Population: The Impact on human resources, affect the output of the business.
Determination of market size ....
- Lifestyle: More Coordination to form the category of demand for quality and design goods.
- Culture: The Impact and govern the behavior of consumers and business management.
- Family: Impact on productivity directly effect the quality of people working.
- Religion Influenced cultural ethical and legal status of any person, in the observance and
enforcement of decisions.
+ The im