External Environmental Factors

Environmental factors play a big role in an organization and for the manager of that organizations, and so I will have to take note of these important ones and how they could affect me. These external factors are essential for an organization to survive in today's world:

International:

The international environment is all about how today's world and organizations are intertwined with one another. This is seen with how there are increasing amounts of global organizations in recent years. Globalization means that something happening in one country can affect what happens in an organization in another country. According to Daft and Marcic, "the international environment provides new competitors, customers, and suppliers and shapes social, technological, and economic trends as well." (Daft & Marcic, p. 65) as both an organization and a manager, this is important for me to understand because it means I need to be informed of everything that is going on in the world, and not just national news.

Technological:

Technology without a doubt is one of the most important advancements in the world today. In the past few years, there has been an exponential growth in technology. Growing up in this time of growth has been really beneficial for me as both an organization and a manager because it has helped me understand this change and why it is so important. For example, the smart phone in my pocket today is more powerful than most computers 10 years ago, and so I know how important it is to stay up to date with the newest technological advancements. This is why my organization would implement only the most cutting-edge technology and I would incorporate the ease of these new technologies as a manager.

Sociocultural:

Each company will have a different sociocultural feel as each one will have different demographics. Along with the demographic characteristics, the sociocultural dimension represents the norms, customs, and values of the population. (Daft & Marcic, p. 66) Since these customs and values are developed within people in their formative years from ages 4 to 12, people in the workplace will value different traits based on how they grew up. This is why it is important for the manager me to understand how not everyone values the same things and how I can work in a way to make everyone comfortable. This will help the organization have a more connected feel to it and will improve the overall attitude of the people.

Economical:

The economical environmental factor is essential to an organization and a manager to understand because factors such as unemployment, interest rates, and consumer purchasing power in the location of the organization have a large effect on the strategies that organization should employ. Since economies are so globalized today, this factor is closely related with the international factor because an event that happens to the economy of one country can have an impact in factors of another country. An example provided by Daft and Marcic talks about how "the economic recession and the decline of consumer confidence in the United States in the early 2000s affected economies and organizations around the world." (Daft & Marcic, p. 68) As an organization and a manager, I will need to be aware of how global economies are doing so I can be prepared for changes in the market of my home state.

These external environmental factors are those that I deem the most important to grow as an organization and a manager.

- Sayuz

Sources:
Daft, Richard L. Management. 9th ed., Cengage Learning, 2018.