PowerPoint Presentation

The Environment of Management

2 Oct 2014Definition of Business EnvironmentBusiness environmentis the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business.Environment model on business

External Environ2 classifications General & TaskGeneral International Global environ (eg. Drop in dolor increases the sale of US goods due to lower cost)Technology e-biz methods, internet handles almost major activities & helps tracking, device getting smaller so easily assessable, advancement of nanotechnology (seeing matters at the level of molecules/atoms) & its impact on bio, medicine & even electronicsSociocultural Influx of immigrants (large no of Hispanics & discuss its stats), increase in Gen Y & its buying capacity & taste on the market, increase in single parents, low carb dietEconomics economies of countries are more tied up nowLegal/ political Govt regulations on health sector, sensor laws, environmental & recycling laws, No Walmart in small town laws, Tobacco bans Discuss rail roads & websites influence in the same dimension at different time zones of civilization4Task EnvironmentCustomers -Knowledgeable customers have to know about each other as consumers/customers are well aware of pricesCompetitors develop competitive edge over one anotherSuppliers Iron & steel prices have gone up resulting in prices of commodities made of steel have risen. In order to bridge the gap the companies are investing on good relations with suppliers to deliver same cost but better quality goods.Labour Market is also going global and manufacturing units or service units are relocating to lower cost destination. Another aspect is the computer literate labour force and increased focus on service sector & human resources is the prime of the day.

Discuss rail roads & websites influence in the same dimension at different time zones of civilization5The Organization & Environ relationshipCompanies have to make an effort to adapt to the rapid changes in environment. Boundary Spanning role model

Discuss competitive intelligence & how companies like MasterCard, Harley-Davidson hires researchers to do the job. Stay in touch with customer thru internet6Adapting to EnvironmentBoundary-Spanning roleInter-organizational partnershipsMergers & JV

Discuss rail roads & websites influence in the same dimension at different time zones of civilization7Adapting to the environmentBoundary spanning roles caters to two purposes, one being detect and process information about changed in the environment & to connect the detected process with the organizational interest. Eg. Engineers research on new technology development from the external or outside their boundary environ & match it with the orgs needs.Marketing & purchase work face to face with suppliers & customer for better know-howDiscuss rail roads & websites influence in the same dimension at different time zones of civilization8Inter-organizational partnership & Mergers & JV

Companies are joining together to become more effective and to share scarce resources. Head to head competition are giving way to alliance. Managers work to reduce cost & add value to both sides. Emergence of virtual teams. Strategic alliance is called JV, where SWOT is done to have an alliance.9Internal Environment

10Adaptive vs Un-adaptive culture

Theory X Old classical theory where it is believed that humans perform only when coerced/punished/threatened. But Theory Y explains that humans enjoy intellectual challenge & work better when empowered.11Types of corporate culture

12Types of corporate cultureAdaptive culture relates to orgs which suit fast & quick to the environ. They need to be responsive, high risk takers & fast decision makers.Achievement culture suited that concentrates on serving specific external customers, without much of flexibility. Eg. Values competition, aggressiveness, willingness to work long & hard.Involvement culture that places high value on meeting the needs of employees & their equality.Consistency culture values rewards and methodical, rational and orderly way to doing things.Combining culture & performance

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