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2014 Cengage Learning. All Rights Reserved.

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
General environment:
Affects organizations indirectly

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Task environment:
Sectors that conduct transactions with the
organization
Organizational ecosystem:
Formed by the interaction among a
community of organizations in the
environment
Internal environment:
Elements within the organization boundaries

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Economic power has shifted to China and
India
The global environment is complex and
ever-changing

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Massive advancements in a specific
industry and society
Advances drive competition and help
innovative companies gain market share

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Demographic characteristics, norms,
customs, and values
Connected Generation or Generation C
has woven technology into every aspect
of life
U.S. population is aging
Growing diversity has implications for
business

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Economic health of the country/region
Extended globally with uncertainty

Consumer purchasing power


Unemployment rate
Interest rates

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Organizations must be sensitive to the
environment
Growing importance and pressure
Natural dimension does not have own
voice

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Environmental groups advocate
action/policy
Reduce pollution
Develop renewable energy
Global warming

Sustainable use of scarce resources

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Customers
Competitors
Suppliers
Labor Market

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Mergers occurs when two or more
organizations combine to become one
Joint ventures strategic alliance or
program by two or more organizations

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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Corporate culture plays a key role in
learning and innovate responses

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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
Organizations culture

2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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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
2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
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