Ch.2: Discussing the Major Dimensions of the General Environment

In my last class, which was Marketing Management, we discussed the PESTEL analysis. This analysis reviews various environmental factors that can influence an organization's success. For the purpose of this blog we will discuss the dimensions of the general environment, which according to the text represents the primary external forces that affect a firm or organization (Gulati, Mayo, & Nohria, 2016). They include technology, economy, political/legal, and sociocultural. As you can see they are very similar to the PESTEL analysis (Marshall & Johnston, 2019). Further discussion on the major dimensions of the general environment and which of them I find to be the most complicated. I will also discuss how managers can influence each of these.

Picture made by me using Photoshop

Picture made by me using Photoshop

Each of these aspects are very important to the overall environment of an organization. And each of these dimensions have unique complications that an organization or firm will have to conform or comply with. The one that sticks out for me and has a stronger impact and complication of my work environment of healthcare/private practice/mental health is the political/legal dimension. There are various regulations in this dimension that I have to make sure and follow, or I could potentially lose my license or worse, even have charges brought up against me or get sued. There are national, state, and local level legalities that I must follow, including but not limited to HIPAA privacy policies, national and state board certifications and licensure's (I have 5 total), malpractice insurance requirements, various insurance paneling rules and guidelines, city and state business licensing guidelines, and various tax laws. Simply just writing all these out are enough to bring me some anxiety. But I chose this field for a reason and all organizations have various political and legal guidelines they must follow. And unlike the other dimensions, the ramifications for not managing this dimension can have drastic ramifications, such as jail/prison sentences or lawsuits. 

Managers have a compelling position to gauge, oversee, influence, and develop strategies for each of these dimensions. Below I discuss each dimension and how managers can influence them.

• Technology: Understanding and adapting to new and innovative technologies, such as hardware and software an organization utilizes, is key for managers to become versed in. For my sector EHR (Electronic Health Records) technology is one of extreme importance. Finding ones that are user friendly and accommodating can be a rather tedious task at times. 
• Economic: Inflation, unemployment, and various interest rates in different countries can complicate a large majority of organizational efforts. The text details various aspects that a manager must consider in regards to managing a firm in various economies. Considering these aspects before entering a new market is recommended, as well as investigating currency issues, and overall labor situations in these various markets (Gulati, Mayo, & Nohria, 2016). 
• Political/Legal: As described in the above personal example, managing the political and legal conditions are very important for managers. Managers need to determine what those legalities are, as well as any political pressures the firm might face. Staying educated to these conditions, in an ever changing political environment can be rather tedious. Managers must then educate the firm's employees to make sure all policies and legalities stay aligned with the organizations trajectory. 
• Sociocultural: This dimension refers to the values and customs of society as well as other demographic characteristics. A manager must stay informed about how the various demographic populations view particular values, tastes, and products. Managers must have a broad understanding of various different cultures and how those can also affect their decisions towards products and services. The larger the service area for a organization, the more complicated this dimension can be. 

As the reader will note, all of these factors are very important to consider for the long-term success of an organization and business. And consideration is something that is fluid and continues througout the life cycle of the organization. Overall, each of these dimensions are complicated in their own right and need to given their proper consideration and respect. 

References

• Gulati, R., Mayo, A. J., & Nohria, N. (2016). Management: An integrated approach. Australia: Cengage Learning.
• Marshall, G. W., & Johnston, M. W. (2019). Marketing management. New York, NY: McGraw-Hill Education.
• Photos created by me using photoshop, Jessica Kitchens, 07/01/2020