Podcast
Questions and Answers
What are external environment factors?
What are external environment factors?
Which of the following is NOT a component of the external environment?
Which of the following is NOT a component of the external environment?
What percentage of adults think economic inequality is 'not a problem at all'?
What percentage of adults think economic inequality is 'not a problem at all'?
What do stakeholders refer to in an organization's environment?
What do stakeholders refer to in an organization's environment?
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Which generation is NOT mentioned in the demographics section?
Which generation is NOT mentioned in the demographics section?
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What type of sharing occurs in the sharing economy as described in the text?
What type of sharing occurs in the sharing economy as described in the text?
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What is organizational culture defined as?
What is organizational culture defined as?
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How do strong cultures affect employees?
How do strong cultures affect employees?
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Why is organizational culture important?
Why is organizational culture important?
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What percentage of executives have not identified or communicated an organizational culture?
What percentage of executives have not identified or communicated an organizational culture?
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How do company values affect managers' behavior?
How do company values affect managers' behavior?
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What do strong cultures create in organizations?
What do strong cultures create in organizations?
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Study Notes
External Environment Factors
- External environment consists of external factors, forces, situations, and events that affect an organization's performance
- Components of the external environment include:
- Economic factors (e.g. global productivity, trade, employment rates)
- Social factors (e.g. demographics, sharing economy)
- Technological factors
Economic Factors
- Current economic conditions: global productivity is slow, global trade is sluggish, and U.S. employment is up
- Economic inequality is a concern, with only 10% of adults thinking it's "not a problem at all" (Harris Interactive Poll)
The Sharing Economy
- Asset owners share underutilized physical assets or knowledge, expertise, skills, or time with others through peer-to-peer services for a fee
Demographics
- Demography is destiny, with different age cohorts having distinct characteristics:
- Baby Boomers
- Gen X
- Gen Y
- Gen Z
External Environment's Effect on Managers
- The external environment affects managers in three ways:
- Jobs and employment
- Assessing environmental uncertainty
- Managing stakeholder relationships
Stakeholder Relationships
- Stakeholders: any constituencies in an organization's environment affected by its decisions and actions
- Managing stakeholder relationships is crucial for managers
Organizational Culture
- Organizational culture: shared values, principles, traditions, and ways of doing things that influence an organization's members' behavior
- Organizational culture is:
- Perceived
- Descriptive
- Shared
Dimensions of Culture
- Various dimensions of culture can be assessed, including:
- (Dimensions not specified in the text)
Learning Organizational Culture
- Organizational culture affects what employees do and how they behave
- Strong cultures can substitute for formal rules and regulations, creating predictability, orderliness, and consistency
Organizational Culture's Effect on Managers
- Organizational culture affects what managers do, influencing their behavior and decision-making
- Company values can affect managers' behavior, with some companies adopting a "ready-aim-fire" approach versus a "ready-fire-aim" approach
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Description
Learn about the external environment factors that can impact an organization's performance, including global economic trends and factors affecting the American economy. Explore concepts like global productivity, trade, employment, and economic inequality.
