midterm multiple choice
saud64
chp_3.pptxPowerPoint Presentation by Charlie Cook The University of West Alabama
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© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 11e Griffin
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Discuss the nature of the organizational environment and identify the environments of interest to most organizations.
Describe the components of the general and task environments and discuss their impact on organizations.
Identify the components of the internal environment and discuss their impact on organizations.
Discuss the importance and determinants of an organization’s culture and how the culture can be managed.
Identify and describe how the environment affects organizations and how organizations adapt to their environment.
Describe the basic models of organizational effectiveness and identify contemporary examples of highly effective firms.
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Learning Objectives
Management 11e Griffin
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3–2
The Organization’s Environments
External Environment
General environment
Everything outside an organization’s boundaries—economic, legal, political, socio-cultural, international, and technical forces.
Task environment
Specific groups and organizations that affect the firm.
Internal Environment
Conditions and forces present and at work within an organization.
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3–3
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3–3
Management 11e Griffin
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3.1 The Organization and Its Environments
Management 11e Griffin
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3–4
The External Environment
The General Environment
The set of broad dimensions and forces in an organization’s surroundings that create its overall context.
Economic dimension
Technological dimension
Sociocultural dimension
Political-legal dimension
International dimension
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3–5
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Management 11e Griffin
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3.2 McDonald’s General Environment
Management 11e Griffin
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3–6
The External Environment (cont’d)
Dimensions of the Task Environment
Specific groups affecting the organization
Competitors
Customers
Suppliers
Regulators (agencies and interest groups)
Strategic partners (allies)
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3–7
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Management 11e Griffin
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3.3 McDonald’s Task Environment
McDonald’s
Competitors
•
Burger King
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Wendy’s
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Subway
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Dairy Queen
Customers
•
Individual
consumers
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Institutional
customers
Suppliers
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Coca-Cola
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Wholesale food
processors
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Packaging
manufacturers
Strategic Partners
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Wal-Mart
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Disney
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Foreign partners
Regulators
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Food and Drug
Administration
•
Securities and
Exchange
Commission
•
Environmental
Protection
Agency
Internal environment
Task environment
Management 11e Griffin
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3–8
The Internal Environment
Conditions and stakeholder forces within an organization
Owners.
Board of directors
Employees
Physical work environment
Culture
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© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 11e Griffin
3–9
The Organization’s Culture
Organization Culture
Is the set of internal values, beliefs, behaviors, customs, and attitudes that determines the “feel” of the organization.
Is not necessarily the same throughout the entire organization.
Must be managed so that its strength benefits the firm’s overall effectiveness and long-term success.
Can be dysfunctional if it becomes strongly resistant to change.
3–10
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 11e Griffin
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
3–10
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Determinants of Organization Culture
Shared experiences
Organization successes
Organization’s founder
Organization Culture
Symbols, stories, heroes, slogans, ceremonies
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Management 11e Griffin
How Environments Affect Organizations
Environmental Change and Complexity
Change occurs in two ways:
Degree to which change in environment is occurring
Degree of homogeneity or complexity of the environment
Uncertainty
A driving force that influences organizational decisions.
Environmental Turbulence
Unexpected changes and upheavals in the environment of an organization.
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3–12
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Management 11e Griffin
3–12
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3.4 Environmental Change, Complexity, and Uncertainty
Management 11e Griffin
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3–13
Porter’s Five Competitive Forces
Power of customers
Power of suppliers
Threat of substitute products
Competitive rivalry
Threat of new entrants
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3–14
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Management 11e Griffin
3–14
Porter’s Five Competitive Forces
Threat of new entrants
Extent to and ease with which competitors can enter market.
Competitive rivalry
Competitive rivalry between firms in an industry.
Threat of substitute products
Extent to which alternative products/services may replace the need for existing products/services.
Power of buyers
Extent to which buyers influence market rivals.
Power of suppliers
Extent to which suppliers influence market rivals.
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3–15
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Management 11e Griffin
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3.5 How Organizations Adapt to Their Environments
Management 11e Griffin
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3–16
How Organizations Respond to Their Environments
Information Management in Organizations
Boundary spanners
Environmental scanning
Information systems
Strategic Response
Maintaining the status quo, altering the current strategy, or adopting a new strategy.
Mergers, Acquisitions, Alliances
Firms combine (merge), purchase (acquisition), or form new venture partnerships or alliances.
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© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Management 11e Griffin
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How Organizations Respond to Their Environments (cont’d)
Organizational Design and Flexibility
Adapting by building flexibility into structural design.
Mechanistic firms operate best in stable environments.
Organic firms are best suited for dynamic environments.
Direct Influence of the Environment
Attempting to change the nature of the competitive conditions in its environment to suit its needs.
Pursuing new or changed relationships with suppliers, customers, and regulators.
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Management 11e Griffin
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The Environment and Organizational Effectiveness
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Systems resource approach
Internal processes approach
Goal approach
Strategic constituencies approach
Models of Organizational Effectiveness
Combined approach
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Management 11e Griffin
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3.6 A Model of Organizational Effectiveness
Management 11e Griffin
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3–20
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3.1 Examples of Admired and High-Performing Firms
| Fortune’s Most Admired Companies (2011) | Business Week’s Best-Performing Companies (2011) |
| Apple Google Berkshire Hathaway Southwest Airlines Procter & Gamble Coca-Cola Amazon FedEx Microsoft McDonald’s | Priceline.com Intuitive Surgical Southwestern Energy Apple salesforce.com Express Scripts Flowserve FMC Technologies Cliff’s Natural Resources Amazon.com |
Management 11e Griffin
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KEY TERMS
internal environment
external environment
task environment
economic dimension
technological dimension
sociocultural dimension
political-legal dimension
international dimension
competitor
customer
supplier
interest group
strategic partners (strategic allies)
owner
board of directors
organization culture
uncertainty
five competitive forces
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Management 11e Griffin
© 2013 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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