It is usual to consider the environment through form of analysis known as pest analysis which has 4 main categories ; political this looks at the government involvement through legislation that they provide outlining the legal frame work within which every business must exist and taxation policy which are dependent on company success and Hereford their profit ECONOMIC Factors affecting the financial functioning of the organization and value of money in the economy which will affect the ability to purchase as well as produce goods n services .
It looks at the potential growth in a economy and how the value Of money changes as well as trade SOCIAL This refers to factors affecting the population and supply of labor by looking at the influences on individuals whether their are employees or customers . It will look at the taste n preferences of PIP in society, culture of
PIP the profile of the working population an the number of PIP in the job market which influences expectations and behavior at work TECHNOLOGICAL Factors affecting the processes of production such as changes in computer technology and communication and new manufacturing processes MANAGEMENT FUNCTIONS Management involves creating and internal environment in a business which makes use of the inputs or factors of production to be transformed tap create outputs of goods and services . T is Hereford the responsibility of management to create conditions that allows people to perform to their best ability to be efficient and effective. MANAGEMENT is able to do this through their basic functions of planning organizing directing mad controlling the organizations resources in order to achieve the goals of the company. Organizations considered to be employee oriented so they are likely to be more productive and as a result become more profitable.
Similarly employees ho are mistreated are more likely to reject the policies of the organization.