Macroenviroment
2. External
environment
Microenvironment
1. Internal
environment
1. Internal environment => all functions
within a firm
2. External environment => all forces and
events outside organization affect on its
activities
 Macro environment: not immediately affect
firm’s activities
 Micro environment: directly affect the firm’s
activities

Factors and forces outside the
organization that affect the
organization’s performance

There are 2 main components:
› Specific Environment
› General Environment

Includes external forces that directly
impact managers’ decision and actions
and are directly relevant to the
achievement of organization’s goals
Customers
 Suppliers
 Competitors
 Pressure Groups


Includes broad factors affect not only
one specific organization but they also
affect other organizations involve with
those environment, thus managers must
take these environment into
consideration when they do planning,
organizing, leading, and controlling






Economic Conditions
Political/Legal Conditions
Sociocultural Conditions
Demographic Conditions
Technological Conditions
Global Conditions

Economic Conditions: GDP growth rate, interest
rate, inflation rate, exchange rate, minimum wage
rate, etc.

Political/Legal Conditions
Sociocultural Conditions
Demographic Conditions
Technological Conditions
Global Conditions





Economic Conditions

Political/Legal Conditions: political stability,
corruption, government policy, labor law, tax law,
environment law, etc.

Sociocultural Conditions
Demographic Conditions
Technological Conditions
Global Conditions





Economic Conditions
Political/Legal Conditions

Sociocultural Conditions: social value, life style,
educational standard, language literacy, health
concern, social problems, etc.

Demographic Conditions
Technological Conditions
Global Conditions





Economic Conditions
Political/Legal Conditions
Sociocultural Conditions

Demographic Conditions: gender, age,
educational level, geographic location, income,
etc.

Technological Conditions
Global Conditions





Economic Conditions
Political/Legal Conditions
Sociocultural Conditions
Demographic Conditions

Technological Conditions: telecommunication
technology, alternative energy technology,
technology development and transfer, etc.

Global Conditions






Economic Conditions
Political/Legal Conditions
Sociocultural Conditions
Demographic Conditions
Technological Conditions
Global Conditions: WTO, IMF, international conflict,
FTA, trading blocs, etc.

Includes internal factors drive
organization to its goals which consist of:
1. System
2. Internal stakeholders
3. Facility
4. Organizational culture
1. System: functions or departments within
organization i.e. system of marketing,
operation, human resources,
accounting, finance, and information

Manager must concern: goal and plan
of each system within org. thoroughly,
resources are needed for each system,
and how well each system coordinate to
each other.
2. Internal stakeholders: shareholders,
board of directors, employees

Manager must clearly understand: role,
responsibility, and expectation of each
stakeholder within organization
[*Board of directors is a group of people elected by the owners of a
business entity who have decision-making authority, voting
authority, and specific responsibilities which in each case is
separate and distinct from the authority and responsibilities of
owners and managers of the business entity]
Source: http://en.wikipedia.org/
3. Facility: equipments, tools, building,
plant, location

Manager need to provide proper
facilities are needed for employees and
also need to concern with the budget
are provided by organization
4. Organizational culture

The shared values, principles, traditions,
and ways of doing things that influence
the way organizational member act.

The specific collection of values and
norms that are shared by people and
groups in an organization and that
control the way they interact with each
other and with stakeholders outside the
organization.*
*Source: http://en.wikipedia.org/wiki/Organizational_culture

Symbols

Stories
It was first established in the King
Chulalongkorn (Rama V) period and was
established to be the higher education
institution in the King Vajiravudh (Rama
VI) period.

Rites & Ceremonies
WaiKru Ceremony & New
Students Welcoming
Activities

Values
Seniority system among students and staff.

Beliefs
Members in CU believe in virtues of the
King Chulalongkorn (Rama V) and Thai
royal families.

Norms
First year student uniform:
Male: CU Necktie
Female: White shoes & socks
1.
Attention to detail: need to provide detailed data to support the
decision making ?
2.
Outcome orientation: focus on results (ends) or processes or methods
(means) ?
3.
People orientation: all decision making concerns effect on people in
organization ?
4.
Team orientation: work teams or individuals ?
5.
Aggressiveness: competitive working environment or cooperative ?
6.
Stability: focus on maintaining the current org. status ?
7.
Innovation and risk taking: encourage creative decision and adapt to
change ?
Strong Cultures
Weak Cultures
Values widely shared
Values limited to a few people—
usually top management
Culture conveys consistent
messages about what’s important
Culture sends contradictory
messages about what’s important
Most employees can tell stories
about company history/heroes
Employees have little knowledge of
company history or heroes
Employees strongly identify with
culture
Employees have little identification
with culture
Strong connection between shared Little connection between shared
values and behaviors
values and behaviors

Employee are more loyal.

High organizational performance.
(If values are clear and widely
accepted, employees know what
they’re supposed to do & what’s
expected of them  they can act
quickly to take care of problems.)

Strong culture might prevent employees
from trying new approaches, especially
when conditions are changing rapidly.

Planning
› The degree of risk plan should contain
› Whether plans should be developed by
individuals or teams

Organizing
› How much autonomy should be designed
into employees’ jobs
› Whether tasks should be done by individuals
or in teams
› The degree to which department managers
interact with each other

Leading
› The degree to which managers are
concerned with increasing employee job
satisfaction
› What leadership styles are appropriate

Controlling
› Whether to impose external controls or to
allow employees to control their own actions
› What criteria should be emphasized in
employee performance evaluations
Source: Based on the Caux Round Table’s Principles for Business. The principles are printed
in Business Ethics magazine, 52 S. 10th St. #110, Minneapolis, MN 55403.