Managing External Relations

by William Newman, Thomas Berg



Assembling resources is one of the major divisions of administrative work, along with planning, organizing, directing, and controlling. People to man the positions of the organization, necessary materials and equipment, and funds for working capital-all must be brought together for the use of the enterprise if it is to function. In a broader sense, the enterprise is also dependent on a favorable legal, economic, and social environment. Laws that enable a company to operate must be enforced; business institutions such as wholesalers or transportation firms must be ready to serve the company, key political groups must at least tolerate company activities. Such resources are not brought into a plant, like materials, but their support is nevertheless essential. Common to the task of assembling both tangible and intangible resources is a question of the type of relationship-or alliance-the administrator should establish with each outside group. No enterprise operates in isolation. Even a so called "integrated" company obtains at least some raw materials and supplies from outsiders, and sells goods and services of some sort to outsiders.

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