Presentation Transcript
Ten Elements of the External Business Environment: Ten Elements of the External Business Environment
1. Government Regulation: 1. Government Regulation Traditional Industry Regulation - ICC, CAB, FCC
New Regulation - CPSC, OSHA, EEOC
Markets and Competition - Anti-Trust
2. Energy and the Physical Environment: 2. Energy and the Physical Environment EPA- Environmental Protection Agency
3. Labor and Human Resources: 3. Labor and Human Resources Labor Movement
Diverse Workforce
Immigration Policy
Public Sector Unions
4. Technology: 4. Technology Robotics and Plant Automation
Computers in the Office
Elimination of Jobs
5. Welfare and the Provision of Public Services: 5. Welfare and the Provision of Public Services Public Service Provision - Roads, Sewer, Water, etc..
Welfare - Welfare Reform
Social Security
6. Inflation, Unemployment and the National Output: 6. Inflation, Unemployment and the National Output Overall Economic Conditions
GDP, Unemployment Rate, CPI, i rates, Stock Market
Fiscal Policy
Monetary Policy
7. Regional and Local Issues: 7. Regional and Local Issues Politics and Public Policy
Growth and Development or Decline
New Industry
8. International Events: 8. International Events Globalization of Industry
International Trade
End of Communism
Wars, International Strife
9. The Political System: 9. The Political System Public Policy Affects All Elements of the External Environment of Business
Course of Public Policy is Crucial
Liberal, Conservative
Democrat, Republican, Independent
10. Social Responsibility and Ethics: 10. Social Responsibility and Ethics Concerns Business Response
Social Responsibility - What is it?
Ethics
Implications for Management: Implications for Management Planning
Organizing
Controlling
Staffing/Rewarding
Pullman Standard Corporation: Pullman Standard Corporation Largest Railcar Manufacturer in US
1980
Sales $800 Mill per Year
5,000 Employees
1982
Sales $0
25 Employees
How Could This Happen?: How Could This Happen? 1972 Russian Wheat Deal
Grain Backed Up at Gulf Ports
ICC - Allocated Hopper Cars to Small Shippers
Tax Shelters
Oil Price Increases
Result - Tremendous Increase in Demand for Railcars: Result - Tremendous Increase in Demand for Railcars Pullman Produced Railcars as Fast as it Could
1980’s Changes: 1980’s Changes Soviet Invasion of Afghanistan
Wheat Deal became Grain Embargo
1980’s Changes: 1980’s Changes ICC Removed Restrictions on Grain Hopper Cars
Staggers Rail Act of 1980
Tax Laws Changed
Economy - Recession
End to Increase in Oil Prices
Internal Factors
Result: Result Pullman Closed its Doors in Two Years
25 Employees
Zero Sales