Analize
The Environment and Corporate Culture
Chapter 2
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The elements of the world constantly change
The external organizational environment includes all outside elements that affect the organization
Task environment:
Sectors that conduct transactions with the organization
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The External Environment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
General environment:
Affects organizations indirectly
Organizational ecosystem:
Formed by the interaction among a community of organizations in the environment
Internal environment:
Elements within the organization boundaries
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The External Environment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Organizational Ecosystem includes organizations
in all sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to survive.
2.1 – Dimensions of the Organization’s General, Task,
and Internal Environments
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Customers
Competitors
Suppliers
Labor Market
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Task Environment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2.2 – The External
Environment of
Costco Wholesale
Corporation
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Globalization influences all other aspects of the external environment
New competitors, customers, suppliers
Changes in social, technological, and economic trends
All organizations must compete and think globally
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General Environment:
International
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Massive advancements in a specific industry and society
Advances drive competition and help innovative companies gain market share
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Technological
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Demographic characteristics, norms, customs, and values
Connected Generation or Gen Z has woven technology into every aspect of life
U.S. population is aging
Growing diversity has implications for business
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Sociocultural
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Economic health of the country/region
Extended globally with uncertainty
Consumer purchasing power
Unemployment rate
Interest rates
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Economic
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Government regulation; state, local, and federal
Political activities
Government agencies and regulation
Managers must recognize the power of pressure groups
Work to influence companies to behave in a socially responsible way
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Legal-Political
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Organizations must be sensitive to the environment
Growing importance and pressure
Natural dimension does not have own voice
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Natural
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Environmental groups advocate action/policy
Reduce pollution
Develop renewable energy
Global warming
Sustainable use of scarce resources
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Natural
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2.3 – 2012 Environmental Performance
Index
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
The environment creates uncertainty for managers
Managers must respond and design adaptive organizations
Uncertainty – managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes
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Organization-Environment
Relationship
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2.4 – The External Environment
and Uncertainty
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Boundary-spanning roles – link and coordinate the organization with external environment, seek:
Business intelligence
Competitive intelligence
Interorganizational partnerships – reduce boundaries and begin collaborating with other organizations
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Adapting to the Environment
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Mergers – occur when two or more organizations combine to become one
Joint ventures – strategic alliances or programs by two or more organizations
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Adapting to the Environment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2.5 - The Shift to a
Partnership Paradigm
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Corporate culture is the set of key values, beliefs, understandings, and norms that members of an organization share
Symbols
Stories
Heroes
Slogans
Ceremonies
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The Internal Environment:
Corporate Culture
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2.6 - Levels of Corporate
Culture
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2.7 - Four Types of
Corporate Culture
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Corporate culture plays a key role in learning and innovate responses
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Shaping Corporate Culture
for Innovative Response
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Bottom-line strategies are successful in the short term
Successful companies balance culture and performance
Culture is the “glue” that holds the organization together
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Managing the High-
Performance Culture
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Based on solid organizational mission/purpose
Shared adaptive values that guide decisions and practices
Encourages individual employee ownership
Bottom-line results
Organization’s culture
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High-Performance Culture
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2.8 - Combining Culture
and Performance
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Defines and uses signals and symbols to influence corporate culture
Articulate a vision for the organizational culture that employees can believe in
Heeds the day-to-day activities that reinforce the cultural vision
Leaders communicate through words and actions
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Cultural Leadership
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.