MODULE identify various forceselements of the firms environment.pdf

organization management module

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SENIOR
HIGH
SCHOOL
ORGANIZATION &
MANAGEMENT
Quarter 1
Self-
Learning
Module
6
Various Forces/Elements of the
Firm’s Environment

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Organization & Management – Grade 11
Quarter 1– Self-Learning Module 6: Various Forces/Elements of the Firm’s
Environment
First Edition, 2020

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Published by the Department of Education Division of Pasig City

Printed in the Philippines by Department of Education – Schools Division of
Pasig City
Development Team of the Self-Learning Module

Writer: Rizza V. Tamayo
Editors: Dennis T. Alex
Reviewers: Content / Language: Dr. Ronie B. Basinang/ Dr. Edna D. Camarao
Technical:
Illustrator:
Layout Artist:
Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
Aurelio G. Alfonso EdD
OIC-Assistant Schools Division Superintendent
Victor M. Javena EdD
Chief, School Governance and Operations Division and
OIC-Chief, Curriculum Implementation Division
Education Program Supervisors
Librada L. Agon EdD (EPP/TLE/TVL/TVE)
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Wilma Q. Del Rosario (LRMS/ADM)
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Perlita M. Ignacio PhD (EsP)
Dulce O. Santos PhD (Kindergarten/MTB-MLE)
Teresita P. Tagulao EdD (Mathematics/ABM)

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Various Forces/Elements of the
Firm’s Environment
Organization &
Management
SENIOR
HIGH
SCHOOL

Self-
Learning
Module 6
Quarter 1

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Introductory Message

For the facilitator:
Welcome to the Organization & Management for Grad 11 Self-Le arning
Module on Various/Elements of the Firm’s Environment
This Self-Learning Module was collaboratively designed, developed a nd
reviewed by educators from the Schools Division Office of Pasig City headed by its
Officer-in-Charge Schools Division Superintendent, Ma. Evalou Concepcion A.
Agustin, in partnership with the City Government of Pasig thr ough its mayor,
Honorable Victor Ma. Regis N. Sotto. The writers utilized the standards set by the K
to 12 Curriculum using the Most Essential Learning Competencies (MELC) in
developing this instructional resource.
This learning material hopes to engage the learners in gui ded and
independent learning activities at their own pace and time. Further, this also aims
to help learners acquire the needed 21st century skills especially the 5 Cs, namely:
Communication, Collaboration, Creativity, Critical Thinking, and Character while
taking into consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:






As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them
to manage their own learning. Moreover, you are expected to encourage and assist
the learners as they do the tasks included in the module.







Notes to the Teacher
This contains helpful tips or strategies
that will help you in guiding the learners.

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For the learner:
Welcome to the Organization & Management Self-Learning Modu le on
Various/Elements of the Firm’s Environment
This Self-Learning Module was designed to provide you with fu n and
meaningful opportunities for guided and independent learning at your own pace
and time. You will be enabled to process the contents of the learning material while
being an active learner.
This module has the following parts and corresponding icons:

Expectations - This points to the set of knowledge and skills
that you will learn after completing the module.

Pretest - This measures your prior knowledge about the lesson
at hand.

Recap - This part of the module provides a review of concepts
and skills that you already know about a previous lesson.


Lesson - This section discusses the topic in the module.


Activities - This is a set of activities that you need to perform.


Wrap-Up - This section summarizes the concepts and
application of the lesson.

Valuing - This part integrates a desirable moral value in the
lesson.

Posttest - This measures how much you have learned from
the entire module.

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VARIOUS FORCES/ELEMENTS OF THE
FIRM’S ENVIRONMENT


E X P E C T A T I O N
At the end of the lesson, you are expected to:
a. identify the various forces/elements of the firm’s environment and
b. enumerate various forces/elements of the firm’s environment.


PRETEST
This activity aims to test your ability to identify the various forces/elements
of the firm’s environment.
Directions: Read the sentence carefully and identify what is being asked.
Write your answer on the line before the number.

_________________ 1. It is the process of identifying and analyzing the various
forces/elements interacting with the organization
________________ 2. It is the statistically study of people and human population.
________________ 3. Who patronize the organization’s products and services.
________________ 4. It is the behavior of members of an organization and the
values, visions, beliefs, habits that they attach to their actions.
_________________ 5. include rival firms within the same industry and the ways
that they behave competitively toward one another





MODULE
6

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RECAP
Let ’s do the recap
In our previous lesson, managers play a certain key role in an organization
that enables to carry out their function. Each role plays an important part in
relation about a specific management function. Managers also are required
essential skills to functions more effectively. These skills are acquired through a
combination of education and experience. Now, what are the role s and skills of
managers? Can you enumerate and explain?
Roles of a Manager Skills of a Manager
_____________________________ ________________________________
_____________________________ ________________________________
____________________________ _________________________________
Now, I will show you a photo of different personalities and tell me what is
their influence on the lives of other people.











https://images.app.goo.gl/9uVKqXcYkjAVtELPA
https://images.app.goo.gl/kyP6WXxiUhBWjs6c
A
https://www.facebook.com/QueenSGKnights/
httprsf.org/en/owners/individual-
owners/detail/owner//manuel-v-pangilinan/

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LESSON
In the study of management, the relationship between the manag ers
and his subordinates with entire the organization is always given importance.
However, we should also give importance to the organization’s relationship with
forces and elements inside and outside its environment. These forces, also called
“key players” are essentials to the success of the organization.
In able to determine the effect of these forces on the achievement of the goals
of the organization. We need Environmental Scanning - it is the process of
identifying and analyzing the various forces/elements interactin g with the
organization. Through this process, the organization decide how to can respond to
the various issues and challenges brought about by these forces.
The business environment is divided into two: (a) External and (b) Internal
Environments.
A. The External Environment
It is composed of all the outside factors or influences that impact the
operation of the business. The business must act or react to keep up its flow of
operations. The external environment can be broken down into tw o types: the
macro environment and microenvironment.
The Macro Environment
It consists of the most general elements that can potentially influ ence the
strategic and long-term decisions of the firm. These forces/ elements are
uncontrollable- the firm does not have any control over them, but the firm can
think of various ways to respond and adapt to the influences that these may bring
to the organization.
The following are the elements of macroenvironment:
1. Demographic conditions - It is the statistical study of people and the human
population. Information such as age, sex, marital status, family size, occupation,
and the like are being gathered by businesses to forecast future trends and
consumptions of the products and services that they may offer.

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2. Economic conditions - It refers to the overall health of the economy. The
economy can effect on two essential aspects – your company’s levels of production
and the decision-making process of your customers.
3. Political-Legal conditions - It refers to national or local laws, international
laws, and rules and regulations that influence organizational management.
4. Socio-cultural conditions – It refers to the structure and dynamics of
individuals and groups and how these affect their behaviors, belief, and lifestyles.
5. Technological conditions -These conditions are related to skills and ability
that are implemented into production, as well as all the materials and technology
that a particular product requires to be made. They are essential and can have a
big impact on how well your business is running.
6. World and Ecological Environment conditions - This refers to the physical
environment of the organization and the resources available to be able to produce
output. It also refers to how the firms can meet the needs of their customers while
advancing the well being of the natural environment.

The Micr-Environment
The micro-environment of a business includes the factors in the immediate
area of operation affecting its performance and decisio n-making freedom. It
consists of all the actual organizations, groups, and persons with whom the
organization interacts and conducts business. It is also called a task environment or
competitive environment.
The following are the elements of the micro-environment:
1. Customers - Customers are those who patronize the organization’s products
and services. Increasing customer sophistication makes it necessary for
managers of organizations to make crucial decisions regarding the development
of products with higher value and the improvement of their services to meet
their patrons’ increasing demands.
2. Employees - Employees are comprised of those who work for another
employer in exchange for salaries/wages or other considerations. Employees
execute the company’s strategies and are important for the maintenance of the
company’s stability.
3. Suppliers and distribution channels - Managing the supply chain and
distribution network should also be a primary focus of businesses that strive to

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be successful. A well-managed supply chain reduces operatio nal costs and
improves efficiency. Some companies that have managed efficient supply chains
have been able to pass the savings to their customers.
4. Competitors - These include rival firms within the same industry and the ways
that they behave competitively toward one another.
5. Shareholders and Investors - Shareholders and investors are among the most
important internal stakeholders for any business. Businesses also exist for
creating shareholder value. These people have helped you grow your business
and expect returns on their investment. You share both your risks and profits
with them. So, any business must create healthy profits to keep its investors
happy.
6. Public and Media - The public supports the companies that have an ethical
image and if you are not a responsible business, the chances of a poor image in
public and media are higher. Image means a lot in today ’s environment and
sometimes lost reputation can be very difficult to regain.

B. The Internal Environment
The internal environment generally consists of those elements that exist
within or inside the organization such as physical resources, financial resources,
human resources, information resources, technological resources, organization’s
goodwill, corporate culture, and the like.
The following are the elements of the internal environment:
1. Owners and Shareholders - Owners are people who invested in the
company and have property rights and claims on the organization. Owners can
be an individual or group of persons who started the company; or who bought a
share of the company in the share market.
2. Board of Directors- The board of directors is the governing body of the
company who is elected by stockholders, and they are given the responsibility
for overseeing a firm’s top managers such as the general manager.
3. Employees -Employees or the workforce, the most important element of an
organization’s internal environment, which performs the tasks of the
administration. Individual employees and also the labor unions they join are
important parts of the internal environment.

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4. Organizational Culture - Organizational culture is the collective behavior of
members of an organization and the values, visions, beliefs, habits that they
attach to their actions.
5. Resources of the Organization - An organization s resources can be
discussed under five broad heads: physical resources, human resourc es;
financial resources, informational resources, and techn ological resources.
Physical resources include land and buildings, warehouses, all kinds of
materials, equipment, and machinery.
6. Organization’s image/goodwill - The reputation of an organization is a very
valuable intangible asset. High reputation or goodwill develops a favorable
image of the organization in the minds of the public
“No- reputation” cannot create any positive image. A negative image destroys
the organization ’s efforts to attract customers in a competitive world.

ACTIVITIES
ESSAY WRITING
Directions: On one whole sheet of paper, address the following questions:

1. What is included in the external enviroment of the firm?
2. How do forces or elements in the external environment affect the firm?
3. Who are the stakeholders of your school? Give specific examples and state
why they are important for the maintenance of your school’s stability as a
business organization.


WRAP UP
Let’s wrap up by answering the following questions:
1 . What is Environmental Scanning?
2. What are the types of environment?
3. Enumerate the elements of Macroenvironment and Microenvironment?
4. Enumerate the elements of Internal Environment?

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VALUING
Point of Reflection
In our lesson, we talked about the forces/elements inside an d outside of an
organization. These elements influence the leaders or manage rs and even the
employees of an organization either a negative or positive way.

In your understanding, what do you mean by the above quotatio ns?
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________

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POSTTEST

TRUE OR FALSE. Direction: Identify whether the statement is correct or
incorrect by encircling the option that represents your answer.

T F 1. Employees execute the company ’s strategies and are important for
the maintenance of the company’s stability.
T F 2. Technological conditions are the collective behavior of members of an
organization and the values, visions, beliefs, habits that they attach to
their actions.
T F 3. Owners are people who invested in the company and have proper ty
rights and claims on the organization
T F 4. Demographical conditions refer to the structure and dynamics of
individuals and groups and how these affect their behaviors, belief, and
lifestyles
T F 5. Economic conditions refer to national or local laws, international
laws, and rules and regulations that influence organization al
management.


*******

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KEY TO CORRECTION








R E F E R E N CE S
A. Books
Ng, Mark Francis G. “Organization and Management” Anvil Publishing, Inc,
2017; page 45-46
Cabrera, Helen Ma. F. ,Altarejos, Anthony DC. and Benjamin ,Riaz .
“Organization and Management Textbook for Senior High ”, Vibal Publishing
Group Inc, 2016, page 12- 13

B. Website
https://study.com/academy/lesson/what- is-an-external-environment-in-business-
definition-types-factors.html
https://www.mageplaza.com/blog/micro-and-macro-factors-affect-your-
business.html#demographic-forces
https://www.cliffsnotes.com/study-guides/principles-of-management/managerial-
environments/the-internal-environment
https://notesmatic.com/2017/07/microenvironmental-factors-affecting-
business/
https://www.iedunote.com/organizational-environment-elements
http://www.businessdictionary.com/definition/microenvironment.html
Pretest Posttest
1. Environmental scanning 1. T
2. Demographic conditions 2. F
3. Customers 3. T
4. Organizational culture 4. F
5. Competitor 5. F

15. 15

http://smallbusiness.chron.com/six-microenvironmental-factors-affect-
businesses-78023.htm
Pratap, Abhijeet. “MICROENVIRONMENTAL FACTORS AFFECTING BUSINESS ”.
Notesmatic, July 2017 notesmatic.com/2017/07/ microenvironmental-factors-
affecting-business/