organization environment and culture

Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved1OrganizationalEnvironmentsandCulturesPreparedbyDavid&JacksonFerrellB-Books,Ltd.Management5thEditionChuckWilliamsChapter3Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved2WhatWouldYouDo?XMofferscommercial-freesatelliteradiochannelstocorporateandindividualsubscribers,butcompetitionfromrivalSiriusSatelliteRadioanddevelopingMP3-playertechnologyarecuttingintoitsprofits.XMSatelliteRadioHoldings,IncHowwouldyouevaluateXM’scurrentsituation?Whatshouldtheydoiftheywanttobesuccessful?Ifyouwerethedirectorofmarketing,whatwouldyoudo?Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved3ExternalEnvironmentsAfterreadingthenextfoursections,youshouldbeableto:1.discusshowchangingenvironmentsaffectorganizations.2.describethefourcomponentsofthegeneralenvironment.3.explainthefivecomponentsofthespecificenvironment4.describetheprocessthatcompaniesusetomakesenseoftheirchangingenvironments.Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved4ChangingEnvironmentsEnvironmentalChangeEnvironmentalComplexityResourceScarcityUncertaintyCharacteristicsofChangingExternalEnvironments1Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved5EnvironmentalChange1.1EnvironmentalChangeistherateatwhichacompany’senvironmentschangestableenvironmentsdynamicenvironmentsPunctuatedequilibriumtheoryCompaniescyclethroughstableanddynamicenvironments.Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved6PunctuatedEquilibrium:U.S.AirlineIndustry1.1Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved7EnvironmentalComplexity1.2EnvironmentalComplexity:thenumberofexternalfactorsintheenvironmentthataffectorganizationsSimpleenvironmentsComplexenvironmentsChapter3Copyright©2009byCengageLearningInc.Allrightsreserved8ResourceScarcity1.3ResourceScarcityThedegreetowhichanorganization’sexternalenvironmenthasanabundanceorscarcityofcriticalorganizationalresourcesChapter3Copyright©2009byCengageLearningInc.Allrightsreserved9NaturalResourcesThereisgeneralconcernoverthescarcityofnaturalresources.CompanieslikeWeyerhauserworkextrahardtocorrectthemisperceptionthattheyareusingupvaluableresources.Infact,throughcarefulplanningandgoodmanagement,Weyerhauserisabletobothguaranteeitslumberresourcesandbeagoodenvironmentalsteward.Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved10Uncertainty1.4Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved112ExternalEnvironmentChapter3Copyright©2009byCengageLearningInc.Allrightsreserved12ComponentsoftheGeneralEnvironmentEconomyTechnologicaltrendsSocioculturaltrendsPolitical/Legaltrends2Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved13EconomyGrowingvs.shrinkingeconomiesPredictingfutureeconomicactivityBusinessconfidenceindices2.1Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved14TechnologicalComponentInformationOutputInputTechnology--KnowledgeToolsTechniquesRawMaterialsServicesProducts2.2Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved15ImpactofTechnologyopportunityforsome,likeApple,Creative,andothermanufacturers.Butrecordlabelshavesufferedfromtherapidacceptanceofdigitalmusicandpersistentfileswapping.Technologycanbeagreatbenefitoradauntingthreat.MP3playershavecreatedatremendousnewbusinessChapter3Copyright©2009byCengageLearningInc.Allrightsreserved16SocioculturalComponentSocioculturalComponentsDemographicchangesChangesinbehavior,attitudes,andbeliefs2.3Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved17DemographicsExample2.3Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved18Political/LegalComponentLegislationRegulationsCourtdecisionsManagersmustbeeducatedaboutthelaws,regulations,andpotentiallawsuitsthatcouldaffectbusiness://©2009byCengageLearningInc.Allrightsreserved19SpecificEnvironment3CustomerCompetitorSupplierIndustryRegulationAdvocacyGroupChapter3Copyright©2009byCengageLearningInc.Allrightsreserved20CustomerComponentReactivecustomermonitoringrespondingtoproblems,trends,andeventsProactivecustomermonitoringanticipatingproblems,trends,andeventsMonitoringcustomerwantsandneedsiscriticalforbusinesssuccess3.1Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved21CompetitorComponentCompetitiveAnalysisDecidingwhoyourcompetitorsareAnticipatingcompetitors’movesDeterminingcompetitors’strengthsandweaknesses3.2Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved22SupplierComponentOpportunisticBehaviorSuppliersBuyerDependenceSupplierDependenceRelationshipBehavior3.3Chapter3Copyright©2009byCengageLearningInc.Allrightsreserved23SupplierDependenceChapter3Copyright©2009byCengageLearningInc.Allrightsreserved24IndustryRegulationComponent3.4IndustryRegulationConsistsofregulationsandrulesthatgovernthebusinesspracticesandproceduresofspecificindustries,businesses,andprofessionsChapter3Copyright©2009byCengageLearningInc.Allrightsreserved25FederalRegulationAgenciesConsumerProdu