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I. INTERNAL ENVIRONMENT
Including features and conditions inside the organization: finance, human resource, infrastructure, organizational culture, etc. This group tells strengths and management of an organization.

weaknesses

in

Lecturer: Phung Minh Duc (Master) Professional Operation Faculty Tel: 0915075014 Email: ducpm@ftu.edu.vn

I. INTERNAL ENVIRONMENT
1. Organizational culture
UNESCO (2002): Culture should be regarded as the set of distinctive spiritual, material, intellectual and emotional features of society or a social group, and that it encompasses, in addition to art and literature, lifestyles, ways of living together, value systems, traditions and beliefs. Organizational culture is systems or patterns of values, symbols, rituals, myths and practices that have evolved over time. These shared values determine, in large degree, what employees see and how they respond to their world.

I. INTERNAL ENVIRONMENT
1. Organizational culture
It represents a common perception held by the organizations members. It is also a factor affecting managers decision making. The origin of organizational culture is normally closely associated with the vision of the founder.

Lets make things better Lun lun lng nghe, lun lun thu hiu

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I. INTERNAL ENVIRONMENT
2. The importance of organizational environment
Being the source to create competitive advantage for an organization Make their own styles and nuances Create a total strength of the organization Attract and retain talents Encourage innovation in business processes Enable an efficient default controlling system of the organization

3. Charateristics of organizational culture

The degree to which employees are encouraged to be innovative and take risks

The degree to which employees are expected to exhibit precision, analysis, and attention to detail

II. EXTERNAL ENVIRONMENT

The more dynamic and complex the environment is, the more uncertain it is.
Global conditions

The degree to which management focuses on results or outcomes rather than on the techniques and processes used to achieve those outcomes

Innovation & Risk Taking Low.. High Stability Low.. High

The degree to which organizational activities emphasize maintaining the status quo in contrast to growth

Attention to Detail Low.. High

Outcome Orientation Low.. High

Organizational culture
Aggressivenes s Low..High Team Orientation

People Orientation Low.. High Thp.cao

The degree to which management decisions take into consideration the effect of outcomes on people within the organization

Economic condi -tions

Pressure groups Competitors Organization

Suppliers

Political/ legal conditions

Low. High

The degree to which people are aggressive & competitive rather than easy-going

The degree to which work activities are organized around teams rather than individuals

Techno -logical conditions

Custom -ers

Sociocultural conditions

Demographic conditions

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1. The specific environment

including those constituencies that have a direct and immediate impact on managers decisions and actions and are directly relevant to the achievement of the organizations goals. unique and changes with conditions.

1. The specific environment

a. Customers
customer or client who absorbs the organizations output, including Pressures from customers to the organization: Their tastes can change They may bargain, or ask for a discount Buying in big quantity, they require a full supply with discount and promotion. They may change to another provider The industry consists of many small businesses and the number of buyers is small.

1. The specific environment

b. Supplier

1. The specific environment

c. Competitors
are organizations or individuals who can satisfy the organizations targeted customers with the same kinds or substitutes of products, or services. including:
Current competitors:

including providers of inputs, such as: materials, equipment, financial and labor inputs, semi-products or services (information, management or R&D,) to the organization. Pressures depending on: The product is important and essential to the organization. There are few substitutes. Products differ from the ones of other suppliers. Sales of buyers account for a large proportion of the supplier's sales There is few similar suppliers The cost of changing to another supplier is high.

in the same industry/direct competitors providing substitutes Potential entrants

Competitors

Competitors

1. The specific environment

c. Competitors
Competition among firms in the same industry:
Industry structure: quantity and size of firms in the

1. The specific environment

c. Competitors

Barriers to potential competitors:

Government policies of industry entry High initial investment capital advantages due to large-scale production Products with identification High cost of goods changing Disadvantages of penetration of solid distribution channels customer loyalty Advantage

industry
Growth speed of the industry Growth speed of the demand Fixed cost weight The diversity of the products Excess capacity in the industry: supply > demand High barriers to industry entry, low barriers to industry

exit

of price that competitors cannot (proprietary technology, more favorable resource). Strong reactions from current firms

have

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1. The specific environment

c. Competitors
Competitors providing substitutes: Most of the substitutes result from technology development.
Pressure of substitutes limits the potential of profit of

1. The specific environment

the industry as the highest price is limited.

1. The specific environment

d. Pressure groups
Groups or organizations, the interests of which affect the operation of the firms These groups force the firm/organization to change their policies

2. The general environment

a. Economic conditions
Interest rates Inflation Disposable income Share-market fluctuations

When socio-political life changes, pressure groups also change.

Exchange rate
GDP

b. Political/legal conditions
Political stability Government officers attitude to the firms trade practices regulations Legal system

2. The general environment

c. Technological conditions
refers to the current state of technological knowledge and know-how. Breakthrough in technology (new production methods, new materials) Faster and better communication Development of Internet

2. The general environment

d. Socio-cultural conditions
The concept of aesthetic The customs Religions Lifestyle, occupations affect the habit of consumption Concerns and priorities of the society: education, environment.

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2. The general environment

e. Demographic conditions
The demographic conditions encompass trend in the physical characteristics of a population, such as gender, age, level of education, geographic location, income, family composition

2. The general environment

f. Global conditions
is the cooperation and exchange among countries: the lower, remove trade barriers and investment among nations Pros: Opportunity to expand markets Learn from experience in business, management, and the application of modern technology Cons: more intense competition and increasing business risks