Explain in your own words what the specific and general environment of an organisation are

💌

Week 4: Environment and

Culture

Date:

Topic: Discussion

Recall

political issues

economic

social issues

Notes

bribery corruption tax policies inflation stock market poverty aging immigration

@July 23, 2021

technological

enviromental

legal

simple

complex

dynamic

stable

inability to adapt automation r&d blockchain cybersecurity privacy climate change pollution renewable energy - solar, wind, turbo law health and safety measure consumer protection easy to adapt to new changes, new changes don't involve a lot of agencies, etc changes require complicated adaptation: Tan Viet Sin Food frequent changes little changes

📌 SUMMARY:

Date:

Topic: Slides

Recall

Two views on management

Notes

Omnipotent and Symbolic

organizational culture: rituals, stories, symbols, language

@July 23, 2021

Internal Environment

Two types of the external environment

Specific External Environment

General External Environment

PEST(EL) analysis stands for?

What two things determine Environmental Uncertainty?

Stakeholders

Specific and general

factors that directly impact the achievement of an organization’s goals e. suppliers, customers, competitors, government agencies, public

economic, sociocultural, political, legal, technical aspects that may affect the organization.

Political, Economic, Sociocultural, Technological, Environmental, Legal

Degree of change (stable/dynamic) Degree of complexity (simple/complex)

any party in the organization’s external and internal environment that is affected by the organization’s decisions and actions e. customers, employees, investors, suppliers, communities, government

shared values, principles, traditions, ways of doing things that influence how members act "the ways we do things

I. Sample 1

Question 1:

1. Explain in your own words what the specific and general environment of an organisation is (2 points).

Both of these belong to external environment.

Specific environment:

those who have a direct impact on the organization's execution and plans. e. suppliers, customers, employees, investors, competitors.

General environment:

those in socio-cultural, political, legal, economic, etc aspects that may have an impact on the organization's activities. They don't have direct contact with the organization, yet their values and principles would be reflected in the organization's adaptation and structure.

1. Give examples of two elements of Vinfast’s specific environment. (2 points) Potential Customers: Vinfast's potential customers, those who are financially capable of purchasing Vinfast's product line and are interested in their products are essential targets for Vinfast to investigate and understand. Since Vinfast receives most of its revenue from product sales, these customers have a direct impact on Vinfast's profits and thus belong to its specific environment. Mechanics Suppliers: In order to assemble and promote its cars, it's essential that Vinfast orders and receives its quality mechanics parts from trusted suppliers. Ultimtely, consumers will l base their purchasing decision on the longevity and efficiency of Vinfast's products. Therefore, these suppliers have a direct impact on Vinfast's achievements and reputation in the vehicles sector.

Question 2

Present 1 change in the general environment of Vinfast which could have a positive impact on its activity (3 points) and 1 change in its general environment which could have a negative impact on its activity (3 points). Explain Why.

(150 words max, you do not need to write an introduction or conclusion, please answer the questions directly)

Pro:

Sociocultural environment: consumer's purchasing perception. When the perception of Vinfast's target audience (Vietnamese Millenials to Gen X) becomes more open-minded about the quality of domestic vehicles production, then Vinfast's aspiration to become a leading vehicle supplier for Vietnamese people could be executed. They long to support Vietnamese produced vehicles. The higher the tendency Vietnamese people are to purchase its cars, the higher the sales and the bigger the organization can expand nation-wide and worldwide.

Con:

Legality: legal aspects regarding safety measures could restrict Vinfast from exporting its product lines internationally to countries that employ different car assessment methods. If these legal requirements aren't satisfied, Vinfast's ambition to expand its products worldwide would turn into a plight. Petroleum —> increase in gasoline price

I. Sample 2

South Korean metro operator proposes $3 billion Da Nang urban railway

By Hung Le  February 25, 2019 | VNEXPRESS

South Korea’s Seoul Metro Corporation has proposed a Da Nang rail network with 2 metro and 8 tramway lines.

The urban rail network would cover the city’s central area, connect to the beach, airport and main roads, and meet travel needs in all directions, according to a recent report of Da Nang People's Committee.

The committee has estimated the combined cost of the network at $3 billion.

The biggest investment in the rail network will be the east-west metro route connecting the city’s central districts with industrial parks in the northeast of the city, where travel demand is the highest. The metro line will be 17 km long and cost $2 billion to build.

The tramway (overground) routes will be much less expensive, the two longest being the 13 km connecting the resort area of My Khe beach to downtown Da Nang, with an

City tourist attractions (clients have more access to arrive at their locations, more flood of customers from both tourists and locals who couldn’t come because of the lack of transportations before — or the price)

Topic: Individual Activity

Analyze the degree of change and complexity in your life as a student, answer the following:

Complexity :

•What are the factors (components), in your external environment that have a significant influence upon you, at the present time? state at least three.

•What level of knowledge do you have for each component? How much do you really know about managing and dealing with each component?

Change:

•For each component above, do they belong to dynamic or stable environment? (Explain why)

Answer

Complexity

Three factors in my external environment:

1. Family —> the well-being of my parents and their businesses. They are the main sponsors for my education, so their economic balance matters tremendously. My level of understanding of this component is average. There are definitely areas where I could learn more about them and know them better. This component is stable since my family members will hardly ever respond to displacements.
2. Relationships —> I need to maintain relationships with those I have met, as well as reaching out to new people as I venture into new environments. This is significant since networking is essential for psychological needs and future career preparation. I'm confident that I can manage new relationships well. Managing, though, requires more patience and persistence.

This component is quite dynamic. I'm constantly establishing different views and feelings about a person as I get to know him/her more. My levels of affinity and closeness with each person also change as time passes by. 3. School —> the pressure to perform well at school, maximize my understanding of the content in class and engage in essential school clubs/organizations. Entering university truly challenged my old studying methods. I feel an urge to truly push myself and overcome comfort zones in order to meet my goals and expectations. This component is quite mixed. The school's setting, location, core values, and traditional practices would hardly ever change. However, its students, staffs, and resources are subject to constant changes. Any graduating class of students welcomes a new class of freshmen entering the school, making it highly dynamic and responsive.

Topic: Team Activity

Identify an organisation that is experiencing issues in an area of their business (Strong turnover, employee low performance, poor customer relationship...) due to a weak organisational culture. Describe what the problems are and recommend an approach that the organization can take to address these issues. Explain your recommendation using the theory from the class.

Answer: Saks Fifth Avenue — poor customer relationship caused by apathetic customer's service.

Organizational culture focuses on output (sales, marketing, stores upgrades, rankings) and less on the customer experiences —> employees receive poor trainings and perceive little connection with the brand's identity and its customers.

What is the general environment of an organization?

What do you mean by general and specific sources of business environment?

What are the general and specific environments affecting the business?

What is general environment and what are its elements?