How Mega Environment Affects the Overall Growth of an Organization? Every organization in the market upgrades its business strategies on the basis of external and internal environment factors that are highly fluctuating. External environment is described under two categories: mega environment and task environment. Mega environment (sometimes known as general environment) reflects the broad conditions and trends in the societies within which an organization operates.
Factors controlling the mega environment There are mainly five factors that control the mega environment of an organization:
Legal-Political Economic Technological International Socio-cultural
Organizations have little control over these factors and hence cannot alter them for short-term gain or prevent loss. Let us discuss each of these factors in details: Legal-political Factors: Legal-political factors covers the legal and governmental systems within which the organization must operate. These influential factors include various federal, state and local government regulations which have the capability to affect the performance of an organization. From political perspectives, it is very important to have a stable and positive attitude of elected government officials towards the business of the organization for the organization’s progress and prosperity.
Economic Factors: Prevailing economic conditions have a great impact on the management practices in an organization. This factor covers the system of producing, distributing and consuming wealth. For instance, a capitalist economy is controlled by market forces and the means of production are privately owned. On the other hand, in a socialist economy, the means of production are owned by the state and economic activity is coordinated by the plan. Technological Factors: Technological factor can affect the overall success of an organization both positively and negatively. The evolution in technology can greatly affect industries like automobile, telecommunication, computer etc. The organization should adopt current technological developments in order to stay ahead in the competition. International Factors: International factors have great influence on the success of an organization. For example, a slight increase in the value of dollar makes a great impact on the ability of an organization to conduct business abroad. Those organizations that purchase raw materials from abroad also get affected.
Socio-cultural Factors: Socio-cultural factor covers custom, norms, behaviours, societal values, beliefs etc. Socio-cultural aspects are evolving in nature. Therefore, companies must adopt their practices with respect to the changing expectations of the society. For example, if there is a shift in behaviour of the people for a certain product, there will be direct increment in demand and price of the product. Why do students need help in writing on leadership versus management? Mega environment has a close relation with topics like internal environment, task environment, SWOT analysis and PESTLE analysis. Management and marketing students are frequently asked to write on these topics as part of their academic assignments. Hence, detailed knowledge on these topics is required.