Nama : Farhandhika Giswara
Class : ICT A
- 1. Explain the concepts of organizational boundaries and multiple organizational environments!
All business operate within a larger external environment consisting of everything outside an organization’s boundaries that might affect it. Because the external environment plays a major role in determining success or failure, managers must have a complete understanding of their environments so that they can operate and compete within it.
An organizational boundary is that which separates the organization from its environment. But while they were once relatively easy to identify, they are becoming harder to pin down. For one thing, organizations have multiple environments. Some environments are relatively general, such as prevailing economic conditions. Others are much more precise, such as the pricing policies of competitors.
- 2. Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system!
The overall of the economic environment-the economic system in which they operate-affects organizations. The two key goals of U.S. system are economic growth and economic stability.
Economic growth : the pattern of short-term ups and downs in an economy constitute its business cycle. The main measure of growth in this cycle is aggregate output : the total quantity of goods and services produced by a system in given a period.
In a growing economy, two things happen : (i) output per capita-the quantity of goods and services provided by the system per person-goes up. (ii) people then benefit from a higher standard of living : they can buy more goods and services with their currency. To know how much standard of living is improving, we consider the following factors : (i) Gross National Product (GNP)– the total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located. (ii) Gross Domestic Product (GDP)-the total value of all goods and services produced within a given period by national economy through domestic factors of production. If GDP is going up, so is aggregate output;if aggregate output is going up, we have economic growth.
GDP is preferred for calculating national income and output. The real growth rate of a system is the growth rate of GDP adjusted for inflation and changes in the value of the country’s currency. Nominal GDP means GDP measured in current dollars, but we calculate real GDP when we calculate GDP to account for changes in currency values and prices changes. This adjusment accounts for purchasing power parity– the principle that exchange rates are set so that the prices of similiar products in different countries are about the same.
Productivity compares how much a system produce with the resources needed to produce it. Among the factors that can inhibit growth, two of the most important are balance of trade and the national debt. (i) balance of trade is the value of all products exported minus the value of imported products. (ii) national debt is the amount of money that a government owes its creditors.
(2) Economic stability : stability means that the amount of money available in an economic system and the quantity of goods and services produced in it are growing at about the same rate. There are two key threats to stability : inflation and unemployment. (i) inflation occurs when there are widespread price increases throughout an economic system. We measure inflation by measuring inflation by measuring price increases through such indexes as the consumer price index (CPI)-the prices of typical products purchased by consumer living in urban areas. (ii) unemployment is the level of joblessness among people actively seeking work. When it’s low, there’s a shortage of labor available. Meanwhile, producers also start producing less because they can’t sell as much. Aggregate output then decreases and we have recession-a period during which aggregate output, as measured by real GDP, declines. A prolonged and deep recession is a depression.
The government manages the economy through two sets of policies. (1) it manages the collection and spending of its revenues through fiscal policies (such as tax increases). (2) monetary policies focus on controlling the size of the nation’s money supply. Together, fiscal policy and monetary policy make up stabilization policy : government economic policy whose goal is smooth out fluctuations in output and unemployment and to stabilize prices.
- 3. Describe the technological environment and its role in business!
Technology refers to all the ways by which firms create value for their constituents, including human knowledge, work method, physical equipment, electronics and telecommunictions, and various processing system.
Enterprise resource planning (ERP) is a large-scale information system for organizing and managing a firm’s processes across product lines, department, and geographic locations. The ERP stores information on activities, coordinates internal operations with activities by outside suppliers and customers, and generates up to the minute financial reports.
- 4. Describe the political – legal environment and its role in business!
The political – legal environment reflects the relationship between business and government, usually in the form of government regulation. The legal system defines in part what an organization can and can’t do. Pro-or antibusiness sentiment in government can further influence business activity. During periods of probusiness sentiment, firms find it easier to compete and have fewer concerns about antitrust issues.
- 5. Describe the sociocultural environment and its role in business!
The sociocultural environment includes the customs, mores, values, and demographic characteristics of the society in which an organization functions. Sociocultural processes determine the goods and services, as well as the standards of business conduct, that a society values and accepts.
An especially critical element of the sociocultural environment is the practice of ethical conduct and social responsbility. The central issue today resolves around the fact that rapid changes in business relationship, organizational structures, and financial flows pose difficulties in keeping track of company’s financial position.
- 6. Identify emerging challenges and opportunities in the business environment!
Business today is more complex and demanding than ever before. Successful companies are responding to these challenges in new ways. They are redrawing traditional boundaries, joining together to develop new goods and services. They are focusing on their core competencies-the skills and resources with which they compete best and create the most value for owners.
The innovative ways in which companies respond emerging challenges and opportunities include outsourcing, viral marketting, and buiness process management.
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