De La Salle University Graduate School of Business
2.2 Analysis of the Present Task Environment All companies do not operate in a vacuum; rather, their existence is a function of their interactions with its external environment. Figure 1 shows the different layers of environment for a company like Banco de Oro Unibank, Inc.: Figure 1. Levels of Environment for BDO
BDO
Task Environment Industry Environment Relevant Environment Macroenvironment
The broadest level of environment affecting the organization is the macroenvironment. This layer encompasses demographic, economic, political, social, technological, infrastructural, ecological, and legal segments (Narayanan & Fahey, 1986). On the other hand, relevant environment defines the boundaries of the general environment for analytical purposes. Industry environment surrounds the task environment and covers factors that affect all segments of a specific industry. Lastly, the task environment includes the set of customers, suppliers, and competitors that constitute the firm‘s immediate environment. Majority of the day-to-day operations of a company involve activities or decisions related to its task environment. The task environment is more or less specific to a firm, and is not necessarily shared by its competitors. The environmental analysis for this term paper is limited only to the 2 levels, namely: macroenvironment and task environment. Michael Porter stated that the essence of formulating competitive strategy is relating a company to its environment. Although the relevant environment is very broad, it is still in the industry level where the key aspects of a firm‘s environment lie. The structure of the industry plays a big role in determining the level of competition and the strategies available for a specific organization. Forces outside the industry are significant since these affect all firms in the industry; and it is crucial to know how firms have differing abilities in dealing with these forces (Porter, 1980).
Banco De Oro Unibank, Inc. UDARBE, John Paul F. - 10981241
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