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The general environment represents an outer layer of the environment. The dimensions of the general environment include international, technological, socio-cultural, economic and legal political.
1)International dimension includes opportunities for companies to enter and operate in international markets.
· Events originating in foreign countries
· Impacts all aspects of the external environment
· New competitors
· New customers
· New suppliers
Today, all companies global
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Scientific and technological advances
Specific industries
Society at large
Impact:
Organizations
Managers
Customers
3)Economic dimension represents general economic health of the country or region in which the organization operates .(consumer purchasing power, unemployment rate, interest rate)
In order to survive in unstable environment many companies create merges and joint ventures.
-Merger occurs when two or more organizations combine to become one(Bank TuranAlem)
-Joint venture involves a strategic alliance or a program by two or more organizations (short term or long term)This typically occurs when a project is too complex, expensive or uncertain for one firm to do alone(SonyEricsson)
4)Socio-Cultural dimension represents the demographic characteristics(population density,age and education levels)as well as the norms, customs and values of poulation.
Today’s demographics are the foundation of the future workforce
Demographic trends affect organizations globally
5)Legal-political dimension includes government regulations as well as policies designed to influence company behavior.(For ex: prohibition of the advertisement of alcoholic beverages)
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