To understand the relationships & the stakeholders is to understand the nature and scope of the organization.

Organizations have to cope with constant change in society and in the economy. Important recent changes include the following.

Transport has become faster with the growth in the motorway network.

Population changes such as the growth in the number of over 65s have created new markets for products such as private nursing homes and sheltered accommodation. The fall in the number of teenagers during the 1990s will make it difficult for employers such as hospitals and building firms to recruit new workers, and will affect the sales of products aimed at teenagers.

New Products have created markets which were unknown only a few years ago. They also create opportunities for service industries such as video rental and computer programming.

Changing tastes mean that firms must always be prepared to adapt their goods and services. For example, food manufacturers now have to make ‘additive-free’ and ‘low-sugar’ products to keep their customers.

Social changes such as more women working affect a firm’s attitude to its workers, e.g. firms may offer increasing opportunities for part-time work.

Legislation may force a business to make changes such as avoiding discrimination against women or changing products to meet new safety standards.

Rising incomes and more leisure time in recent years have led to increases in demand for many services such as sporting facilities and travel.

International competition, particularly for manufacturers, has made it increasingly difficult for firms to survive among international markets.