Accounting technicians scheme west africa
Download 3.37 Mb. View original pdf
|
- Navigate this page:
- (ii) Socio-cultural environment
- (iv) International environment
| (ii) Economic Environment This is defined by factors such as a) Government fiscal and monetary policies b) Gross Domestic Product (GDP) c) Industrial policy d) Unemployment rate e) Exchange rate f) Inflation rate g) Capacity utilization h) purchasing power and spending i) geographical income variation j) money supply k) consumer savings & debt patterns l) availability of credit m) consumer expenditure patterns n) interest rate o) tariffs and quotas One must take cognizance of the fact that the above factors could and do operate most of the time simultaneously. Invariably, managers in the organisation should be concerned about the trends in the economic conditions in their decision- making. (ii) Socio-cultural environment This is a complex chain of social and cultural conditions prevailing in the society which have far reaching effects on business conditions. The social and cultural conditions in which the organisation operates can be understood by studying the demographic characteristics of the population, nature and lifestyle of the people, the groups they form and the nature of interactions among the groups and the institutions they have created for themselves. For example, the religious, ethnic and social stratification of the population and the degree of harmony and integration which exists in the specific society are key indicators of the nature of the social environment. The crime rate and level of perceived insecurity in the environment have significant implications for managers and their efforts at achieving their goals. The cultural conditions are indicated by values and value systems, morals, beliefs and the norms, which control the behavioural patterns of the people. All these 31 assist a business to fully understand how well it would cope, affect and integrate itself in the mainstream of things. (iv) International environment The international environment of business refers to all those elements on the international scene, which can help or inhibit the decisions and operations of the business enterprise. Changes in the economic, social, technological, political and public policy issues affect the operations of businesses. This is because most companies depend on imported raw materials, technology and other services or export their goods and services overseas. Business enterprises also seek to adopt standards and best practices that can enable them compete effectively. Various environmental, social and legal issues, which emanate from the international scene, influence decision-making in domestic organisations. For example, protection of the environment has become a major issue which all business enterprises take into account in their operations. Other issues including compliance with standard established by the International Labour Organisation (ILO), the rights of women and children, promotion of competition and protection of intellectual property rights, through various international agreements, especially under the World Trade Organisation (WTO. Download 3.37 Mb. Share with your friends:
|