CH03

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CH03

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  1. Chapter 3Organizational Environments and Culture

    Slide 1 - Chapter 3Organizational Environments and Culture

    • © 2015 Cengage Learning
    • MGMT7
  2. © 2015 Cengage Learning

    Slide 2 - © 2015 Cengage Learning

    • 3-1 discuss how changing environments affect organizations
    • 3-2 describe the four components of the general environment
    • 3-3 explain the five components of the specific environment
    • 3-4 describe the process that companies use to make sense of their changing environments
    • 3-5 explain how organizational cultures are created and how they can help companies be successful
  3. Characteristics of External Environments

    Slide 3 - Characteristics of External Environments

    • © 2015 Cengage Learning
    • Environmental change
    • Environmental complexity
    • Resource scarcity
    • Uncertainty
    • 3-1
  4. Environmental Change

    Slide 4 - Environmental Change

    • The rate at which a company’s general and specific environments change.
    • Stable
    • slow rate of change
    • Dynamic
    • fast rate of change
    • © 2015 Cengage Learning
    • 3-1
  5. Punctuated Equilibrium Theory

    Slide 5 - Punctuated Equilibrium Theory

    • Stability
    • Dynamic Change
    • Stability
    • Dynamic Change
    • Dynamic Change
    • 3-1
    • © 2015 Cengage Learning
  6. Environmental Complexity

    Slide 6 - Environmental Complexity

    • Simple
    • few environmental factors that affect organizations
    • Complex
    • many environmental factors that affect organizations
    • © 2015 Cengage Learning
    • 3-1
  7. Resource Scarcity

    Slide 7 - Resource Scarcity

    • The abundance or shortage of critical resources in an organization’s external environment.
    • © 2015 Cengage Learning
    • 3-1
  8. Uncertainty

    Slide 8 - Uncertainty

    • The extent to which managers can understand or predict the external changes and trends affecting their business.
    • © 2015 Cengage Learning
    • 3-1
  9. Environmental Change, Environmental Complexity, and Resource Scarcity

    Slide 9 - Environmental Change, Environmental Complexity, and Resource Scarcity

    • 3-1
    • © 2015 Cengage Learning
  10. General and Specific Environments

    Slide 10 - General and Specific Environments

    • 3-2
    • © 2015 Cengage Learning
  11. Economy

    Slide 11 - Economy

    • A growing economy provides a favorable environment for business growth.
    • Business confidence indices show how confident managers are about future business growth.
    • © 2015 Cengage Learning
    • 3-2
  12. Technological Component

    Slide 12 - Technological Component

    • Technology
    • an umbrella term for the knowledge, tools, and techniques used to transform inputs into outputs
    • Changes in technology can help companies provide better products or produce their products more efficiently.
    • © 2015 Cengage Learning
    • 3-2
  13. Sociocultural Component

    Slide 13 - Sociocultural Component

    • Demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society
    • © 2015 Cengage Learning
    • 3-2
  14. Political/Legal Component

    Slide 14 - Political/Legal Component

    • The legislation, regulations, and court decisions that govern and regulate business behavior
    • Many managers are unaware of the potential legal risks associated with traditional managerial decisions like recruiting, hiring, and firing employees.
    • © 2015 Cengage Learning
    • 3-2
  15. Specific Environment

    Slide 15 - Specific Environment

    • Customers
    • Competitors
    • Suppliers
    • Industry regulations
    • Advocacy groups
    • © 2015 Cengage Learning
    • 3-3
  16. Customer Component

    Slide 16 - Customer Component

    • Reactive customer monitoring
    • Identifying and addressing customer trends and problems after they occur
    • Proactive customer monitoring
    • Identifying and addressing customer needs, trends, and issues before they occur
    • © 2015 Cengage Learning
    • 3-3
  17. Competitor Component

    Slide 17 - Competitor Component

    • Competitors
    • companies in the same industry that sell similar products or services
    • Competitive analysis
    • a process of monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
    • © 2015 Cengage Learning
    • 3-3
  18. Slide 18

    • Supplier Component
    • Suppliers
    • companies that provide material, human, financial, and informational resources to other companies
    • Supplier dependence
    • vs.
    • Buyer dependence
    • © 2015 Cengage Learning
    • 3-3
  19. Behaviors

    Slide 19 - Behaviors

    • Opportunistic behavior
    • when one party benefits at the expense of another
    • Relationship behavior
    • focuses on establishing a mutually beneficial, long-term relationship between buyers and sellers
    • © 2015 Cengage Learning
    • 3-3
  20. Industry Regulation Component

    Slide 20 - Industry Regulation Component

    • Regulations and rules that govern the practices and procedures of specific industries, businesses, and professions
    • © 2015 Cengage Learning
    • 3-3
  21. Federal Regulatory Agencies and Commissions

    Slide 21 - Federal Regulatory Agencies and Commissions

    • Consumer Product Safety Commission
    • Department of Labor
    • Environmental Protection Agency
    • Equal Employment Opportunity Commission
    • Federal Communications Commission
    • Federal Reserve System
    • Federal Trade Commission
    • Food and Drug Administration
    • National Labor Relations Board
    • Occupational Safety and Health Administration
    • Securities and Exchange Commission
    • 3-3
    • © 2015 Cengage Learning
  22. Advocacy Groups

    Slide 22 - Advocacy Groups

    • Concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
    • Public communication
    • Media advocacy
    • Product boycott
    • © 2015 Cengage Learning
    • 3-3
  23. Making Sense of Changing Environments

    Slide 23 - Making Sense of Changing Environments

    • © 2015 Cengage Learning
    • Environmental scanning
    • Interpreting environmental factors
    • Acting on threats and opportunities
    • 3-4
  24. Environmental Scanning

    Slide 24 - Environmental Scanning

    • Searching the environment for important events or issues that might affect an organization.
    • Managers scan the environment to reduce uncertainty.
    • Organizational strategies affect environmental scanning.
    • Environmental scanning contributes to organizational performance.
    • © 2015 Cengage Learning
    • 3-4
  25. Interpreting Environmental Factors

    Slide 25 - Interpreting Environmental Factors

    • Threat or opportunity?
    • Threat
    • managers typically take steps to protect the company from further harm
    • Opportunity
    • managers consider strategic alternatives for taking advantage of those events to improve performance
    • © 2015 Cengage Learning
    • 3-4
  26. Cognitive Maps

    Slide 26 - Cognitive Maps

    • 3-4
    • © 2014 Cengage Learning
    • © 2015 Cengage Learning
  27. Creation and Maintenance of Organizational Cultures

    Slide 27 - Creation and Maintenance of Organizational Cultures

    • Primary source of organizational culture is the company founder.
    • Organizational culture is sustained by…
    • organizational stories
    • organizational heroes
    • © 2015 Cengage Learning
    • 3-5
  28. Keys to an Organizational Culture

    Slide 28 - Keys to an Organizational Culture

    • 3-5
    • © 2015 Cengage Learning
  29. Three Levels of Organizational Culture

    Slide 29 - Three Levels of Organizational Culture

    • 3-5
    • © 2015 Cengage Learning
  30. Changing Organizational Cultures

    Slide 30 - Changing Organizational Cultures

    • Behavioral addition
    • Behavioral substitution
    • Change visible artifacts
    • Hiring people with values and beliefs consistent with desired culture
    • © 2015 Cengage Learning
    • 3-5
  31. Camp Bow Wow

    Slide 31 - Camp Bow Wow

    • What aspects of Camp Bow Wow’s corporate culture reflect the surface level of the organizational culture? What aspects reflect the values and beliefs? What aspects reflect the unconsciously held assumptions and beliefs.
    • Why did Camp Bow Wow have to change its culture when it became a national franchise?
    • What impact does Heidi Ganahl’s personal story have on employees at Camp Bow Wow?
    • © 2015 Cengage Learning
  32. Camp Bow Wow

    Slide 32 - Camp Bow Wow

    • © 2015 Cengage Learning