Factors of indirect impact

Kuznetsov. Fundamentals of management

These factors relate to the total environment of the organization and do not have such an impact on its operations, as the group of the previous factors. However, the indirect effects environment is usually more complex than the environment of direct influence.Consequently, its study is usually based primarily on forecasts.
1. Economic environment. It is characterized primarily by the level of development and the state of the economy. The state of the economy has an impact on the cost of resources and demand of goods and services. In terms of inflation firms are interested in increasing stocks of material resources, delays in payments, including wages, the increase in loans. The economic downturn is forcing organizations to reduce inventories, to reduce the number of workers and to significantly limit or even to abandon the expansion of production. The economic environment influences the political environment.
2. Political environment. The methods and purposes of management of the economy is the result of political goals and objectives of the ruling government. Of great importance is political stability. Laws passed by Parliament are often the result of the political situation and pressure of lobbyists, which reflect the corresponding currents in social and cultural spheres.
3. The technological environment. Technology is both an external factor of the organization and its internal variable. As an external factor, it reflects the level of scientific and technological development, which affects the organization, for example, in the areas of automation, computerization, etc. to remain competitive, every organization is forced to use the achievements of scientific and technological progress, at least the ones that affect the efficiency of its activities.
4. Socio-cultural environment. Socio-cultural factors influence the formation of demand, employment, wages and working conditions. These factors include the demographic state of society. The importance and relationship of the organization with the local population where it operates. In this regard, there are also as a factor of socio-cultural environment, an independent media, which can shape the image of the company and its products and services.
5. International environment. Of course, these factors have an impact primarily on organizations operating in the international market, but many of them can have not only indirect but also direct impact on organization, existing only on the world market.