Influence of Non-economic Environments on Management Effectiveness Essay

Influence of Non-economic Environments on Management Effectiveness - Essay Example This paper offers a comprehensive analysis of the non-economic factors of business environment and describes the effects that this factors could have on an overall economic performance of any organization. One of the most important issues when designing a business strategy is the location and the evaluation of the factors that could influence the operation and the performance of the business. The nature of the factors that can ‘interact’ with a firm’s management can vary in accordance with the following variables: the type of business activities, the country where the firm operates, the political and natural environment and the culture/ knowledge/ ethnicity of the employees but also of the employer. Moreover, these factors can be related to financial data or to other elements of non-economic character, like the physical environment, the human resources and the market (referring to the people and not to financial activities). In order to achieve an integrated presentation of the non-economic business environment that has an influence to the structure, the decisions and the performance of its management, we should refer to its separate elements (in both external and internal area) as they can be observed from their interaction to the firm’s activities. The role of the non-economic factors to the business management can be characterized as critical regarding the consequences that they may have on the performance and for the individuals that participate to the firm’s operation. Behavior of the business as an entity is also important as it can provide the measures for the limitation or even the elimination of the negative consequences that can follow the interaction of the non-economic factors with the corporate activity.