Chapter 2: The Organization in its Environment PDF

Summary

This document provides a high-level overview of organizational environments, covering domestic, global, technological, and political-legal aspects. It explores the impact of these environments on business success and examines various types of organizational cultures.

Full Transcript

Chapter 2 : The Organization in Its Environment Learning Outcomes employees & Describe the external and internal environments of business and discuss how these environments affect the success or failure...

Chapter 2 : The Organization in Its Environment Learning Outcomes employees & Describe the external and internal environments of business and discuss how these environments affect the success or failure of organizations ② Describe the development and explain the importance of corporate culture. External Environment of Business * External Environment : everything outside an organization's boundaries that might affect it. Etc: Artificial Intelligence Economic Environment Political-Legal Environment Technological Environment External Environment Global Business Environment Sociocultural Environment Domestic Business Environment ① Domestic Business Environment > - the environment in which a firm conducts its operations and derives its revenues Etc : Nilai , Malaysia customers affect businesses ↑ Businesses seek to be close to their customers , to establish strong relationships with > - their suppliers (to deliver raw materials for its own production), and distinguish themselves from their competitors ② Global Business Environment > - the international forces that affect a business New from the external environment impacts > - Competitors : buy online from China instead of Nilai > - Customers : post on Amazon (international customers) > - Suppliers : order directly from factories in Vietnam (no middleman) * Social , technological and economic trends change * Etc : While Starbucks expanded into European markets , Starbucks in France is making losses. Why? French drink coffee Hence, society likes Sitting down to. sitting spaces need to be built more. ③ Technological Environment > ways that firms create value for their constinents - human knowledge : store information into database work methods : use system in work physical equipment : advanced machines for manufacturing electronics and telecommunications social media for : advertising processing systems to perform business activities ⑦ Political - Legal Environment relationship between business and of government, usually in the form government regulation of business > - * e-invoicing to prevent income tax evasion A legal system defines in part what an organization can and cannot do > various - government agencies regulate important activities ① advertising practices : ban tobacco ② safety and health considerations : protect employees' and customers' health ③ acceptable standards of business conduct : RM1500 minimum wage depending on countries , cannot give out presents to customers ⑤ Economic Environment ~ relevant conditions that exist in the economic which system in a company operates * General economic health of the country Etc : Purchase interest rate : reluctance towards Unemployment rate t give lower new , salary power ↓ higher developments, need to loan Unemployment rate give salary from banks 6 Sociocultural Environment (gender , age, income) * customs characteristics of the , mores, values , and demographic society in which an organization functions > - determines goods and services , business conduct's standards to let value and a society accept * give presents : mannerisms or corruption ? * McDonald's : no beef in India Internal Environment of Business elements within the organization's boundaries & Culture ③ O Management Employees O Management is the attainment of effective and efficient organizational goals > - manner in an > - through planning organizing leading , , , and controlling organizational resources done and Managers get things by coordinating motivating other people · ② Corporate Culture > shared experiences , stories, beliefs , and that characterize organization - norms an. etc : punctuality/work-life balance/more effort = more success > - it directs employees' efforts and helps everyone work toward the same goals work (manager makes everyone together easily) at the surface Artifacts M Culture seen level ① dress code ④ Slogans (professional/informal) (core values) Visible ② office layout (etc : shared space, encourage communication) ③ symbols (boss cares for ⑤ Ceremonies employees) (Etc : "Employee ofThe year " award ceremony) Deeper values and Invisible > - Expressed values "The Penney Ideal shared 4 "The HP Way 1 understandings Creduce barriers) A Culture helps managers to held members by organization > - Assumptions and deep beliefs understand the hidden , aspects of the organization complex people " care for each other like a family ① Adaptability Culture environment that requires fast response and high-risk decision making employees have make decisions and autonomy to act freely > - at the end of Cetc: achieve goals the month, how to achieve depends on yourself) > - companies that must move quickly to respond to rapid change in the environment fashion companies IT-based companies > - Etc : , ② Achievement Culture customers without need for flexibility > suitable to companies serving specific and rapid change (no fast response) > - results-oriented culture A values competitiveness, aggressiveness, personal initiative , cost , achievement, and willingness cutting to work long and hard to achieve results > - Etc : banking , insurance , investments company ③ Involvement Culture > - focus on the involvement and participation of employees > - place high value on employees' needs > - caring family-like atmosphere , > - avoid status differences * Etc : Friendly attitude when providing services to customers ④ Consistency Culture > - internal focus and consistency for a stable environment (stable profit) values and rewards methodical , rational , > - orderly way of doing things > - emphasis on order and follows the rules Crules and regulations) * Etc : large and stable companies Culture for Innovative Shaping Corporate Response organizational climate that enables and innovative responses > Corporate culture plays a key role in shaping an learning challenges threats from the external environment to , new opportunities or > Successful balance culture and performance companies - > - Culture is the glue that holds the organization together Managing High-Performance Culture > - Managers emphasize both cultural values and business results to create a high-performance culture > - High-performance culture ↳ Based on solid organizational mission or purpose ↳ Adaptive values that guide decisions and business practices * Managers create and sustain adaptive high-performance cultures through cultural leadership (managers shape culture) Cultural Leader defines and signals and symbols to influence culture > uses corporate - ① articulate vision for the culture that a employees can believe in ② needs the day-to-day activities that reinforce the cultural vision

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