, or taxpayers, if it is a publicly sup ported institution, (2) suppliers, (3) unions, or other employee groups, and (4) the general public. Relatively recently, the concept of an organization's external environment as an exter nal coalition has been expanded (Glueck, 1989). This expanded definition of the external environment includes the following elements:
1. Economic factors. The economic factors which have the greatest impact on an organization's strategic planning are (a) the stage of the business cycle, (b) trends in price infla tion and deflation, (c) monetary policies, (d) fiscal policies, (e) international balance of payments, (f) international
3balance of trade, and (g) governmental budget deficits and sur pluses (Glueck, 1989).
2. Governmental and legal factors. The governmental and legal factors which most directly affect an organization's strategic planning are (a) wage and price controls, (b) equal opportunity laws, (c) occupational safety and health laws, (d) consumer credit regulations, (e) zoning laws, (f) environmental protection laws, (g) consumer protection laws, (h) labor rela tions laws, and (i) plant termination laws (Glueck, 1989). Additionally, governmental actions affect strategic planning conducted by organizations through (j) governmental purchasing policies, (k) governmental subsidies for selected industries, (l) export and import laws, (m) anti trust laws, and (n) taxa tion policies at all levels of government (Glueck, 1989).
3. Market and competitive factors. The principal mar ket and competitive factors affecting the strategic planning of an organization include (a) population demographics, (b) pro duct life cycles, (c) product substitute availability, (d) strategic changes by competitors, and (e) the entry and exit from markets and industries of competitors (Glueck, 1989).
4. Supplier and technological factors. The relevant supplier and technological factors affecting st...