Organization and Management Week 3
Organization and Management Week 3
Organization and
Management
Quarter 1 – Module 3:
Business Environment
ORGMGMT | Q1 W3
Content Standards:
The learners have an understanding of the role of business in the environment,
and how the environment affects the firm
Performance Standards:
The learners shall be able to analyze the various environmental forces affecting
the firm and summarize these using Political Economic Social and Technological
Analysis PEST) and Strengths, Weaknesses, Opportunities and Threats (SWOT)
Analysis frameworks
Learning Competency:
The learners shall be able to analyze various forces/elements influencing local
and international business environment using PEST and SWOT strategies
Learning Objectives:
At the end of this module the students will be able to :
This module contains information that you will need to understand managing
in diverse milieus. It will help you to have vital understanding about the business
environment and its local and international settings.
In order for you to be successfully benefited with this material, I would like you
to ponder the following:
1. Take time to read and understand all the contents in every page
2. Follow direction and/or instruction in each page of this module thoroughly
3. Accomplish all given activities in this module
4. Apply all the knowledge you are going to learn in this module in answering
the provided Post test
5. Enjoy learning!
ORGMGMT | Q1 W3
What I know
A. Read and understand each statement and choose the letter of the correct
answer.
TRUE or FALSE: Write TRUE if the statement is correct and FALSE if it is wrong
What’s In
Directions: Expound your ideas by defining the below terminologies. Write your
thoughts in your notebook and read it later after you do so
1. Analysis
2. Environment
3. Customer
4. Economy
5. Legal
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What’s New
The business environment involves all of the internal and external factors that
affect the company as a whole including employees, customers, management, supply
and demand and business regulations. It can be classified into three stages namely:
general environment, operating environment, and the internal environment
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Supplier has something to do with individuals or business who provides goods,
raw materials or services to an entity needed for their production
Pressure Groups has something to do with environmental issue that affects the
business through their project, demands, course, campaigns etc.
3. Internal Environment
Company mission describe what the organization stands for and why it exists.
Policies are principles that govern how situations should be addressed. Structure is
the hierarchical arrangement of people and their responsibilities. Resources are the
people, facilities, infrastructure at an organization’s clearance. Corporate culture is
the organization’s personality. It consists values, beliefs, attitudes and standard that
define employee’s success
One of the reasons why businessmen expand their businesses are to increase
their profit and to reach the growth of their firm in a period of time. Some of the local
firms who are seeking to expand internationally find challenges in extending the
following factors: (1) Political and legal differences- national environment will always
be different from the other
countries and it should be noted
that adjustment will occur. (2)
Cultural differences is one of the
difficult aspect especially if your
firm is not diversified (3)
Economic differences such as
exchange rates that varies
country from country to country
(4) Religions, genders and other
restrictions and etc. https://www.google.com/search?q=globalization+icon&tbm=isch&hl=en&chips=q:globalizati
on+icon,g_1:business:plm62tuXTAw%3D&hl=en&ved=2ahUKEwjf9-ea-
9rqAhVtyIsBHT_jBqgQ4lYoAnoECAEQDw&biw=1263&bih=610
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What is it
Before entering into new ventures, manager needs to analyze the positive and
negative side of environment so he can assess what are the necessary steps to be
taken. PEST and SWOT are closely related approaches to business analysis.
What’s More
Activity 1: Examine each element and identify what kind of business environment
they belong. Write G if it is related to general environment, O if it is
related to operating environment and I if it belongs to internal
environment
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What I have learned
Activity 2: Expanding business internationally is profitable yet risky. What are the
things you must consider first before going through? Write 5 advantages
and 5 disadvantages that you might think in setting business abroad.
Advantages Disadvantages
Activity 3: SWOT: Analyze the following features and use SWOT tool in classifying
them. Write the letter of your answer on the space provided
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Critical Thinking:
Using Venn diagram, write all possible relationship and differences of SWOT and
PEST analysis
Assessment
A. Read and understand each statement and choose the letter of the correct
answer.
1. It is the stage of the organization’s environment that may affect the firm in the long
run
A. Internal environment C. General environment
B. Operating environment D. International environment
5. What element of internal environment where you can see values and beliefs of
members of the organization?
A. structure B. culture C. mission D. resources
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8. PEST element assessment will be seen in what organization’s environment?
A. Internal environment C. General environment
B. Operating environment D. International environment
10. A tool that is usually used to analyze the external aspects of the organizations is
called __
A. SWOT B. SWOT C. PEST D. VENN
Additional Activity
Directions: At this stage, you already know your capabilities and flaws. As a senior
high school student, write down your strength, weakness, opportunities and threats.
S W O T
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