mascch04-12e

8/18/2019 mascch04-12e

1/26

Place Slide Title Text Here

©2013 John Wiley & Sons, Inc. All rights reserved. 4-1

1-1©2013 John Wiley & Sons, Inc. All rights reserved.

JOHN R. SCHERMERHORN, JR.

MANAGEMENT12th Edition

C h a p t e r 4

ExternalEnvironment andOrganizational

Culture

8/18/2019 mascch04-12e

2/26

Culture Place Slide Title Text Here


Planning Ahead —Chapter 4 Study Questions

1. What is in the general or macro environment oforganizations?

2. What are key elements and issues in the specific ortask environment of organizations?

3. How do organizations accomplish innovation?4. What are the emerging issues of sustainability and

the environment?

8/18/2019 mascch04-12e

3/26



Chapter 4 Learning Dashboard

1. The General or Macro Environment1. Economic conditions2. Legal-political conditions3. Sociocultural conditions4. Technological conditions5. Natural environment conditions

2. The Specific or Task Environment1. Stakeholders and value creation2. Competitive advantage3. Uncertainty, complexity, and change

8/18/2019 mascch04-12e

4/26



Chapter 4 Learning Dashboard

3. Environmental and Innovation1. Types of innovations2. The innovation process3. Disruptive innovation and technology

4. Environment and Sustainability1. Sustainable development2. Sustainable business3. Human sustainability

8/18/2019 mascch04-12e

5/26



Takeaway 1: The General or Macro Environment

The general or macroenvironment — all of the background

conditions in the external environment of the organizationincluding:

Economichealth of the economy

Legal-politicalphilosophy/objectives of political party running the government

Socio-culturalnorms, customs, social values

Technologica ldevelopment and availability of technology

Natural environmentnature and conditions of environment

8/18/2019 mascch04-12e

6/26



Figure 4.1 Sample elements in the general

environments of organizations

8/18/2019 mascch04-12e

7/26




•

Economic conditions – overall health of economy in terms of financial markets,

inflation, income levels, and job outlook – Offshoring – outsourcing of jobs to foreign locations – Reshoring – return of jobs from foreign locations

8/18/2019 mascch04-12e

8/26




• Legal-political conditions – laws and regulations, government policies, and the

objectives of political parties –

vary from one country to the next – Internet censorship - deliberate blockage of public

access to information posted on the Internet

8/18/2019 mascch04-12e

9/26




•

Sociocultural conditions – diversity issues relating to educational opportunity,

access to technology, housing/job options – norms, customs, demographics, and societal values – Generational cohorts -- people born within a few years

of one another and who experience somewhat similarlife events during their formative years

8/18/2019 mascch04-12e

10/26




•

Technological conditions – social media, features and “apps” on smart

phones – brings both opportunities and problems – work-life balance

8/18/2019 mascch04-12e

11/26




•

Natural environment conditions – nuclear plant failure, oil spill, hurricane – “carbon neutral,” “green”, “sustainability” –

Sustainable business – meets both the needs ofcustomers and protects the natural environment

8/18/2019 mascch04-12e

12/26



Takeaway 2: The Specific or Task Environment

The specific (task) environment - actualorganizations, groups, and persons with whoman organization interacts and conducts business•

Includes important stakeholders such as:

Customers Suppliers Competitors Regulators Owners

8/18/2019 mascch04-12e

13/26




Multiple stakeholders in the environment of an organization

8/18/2019 mascch04-12e

14/26



Takeaway 2: The Specific or Task Environment?

•

Competitive advantage – a core competency that clearly sets an

organization apart from competitors and gives itan advantage over them in the marketplace

– Companies may achieve competitive advantagein many ways, including:

• Costs,• quality,• delivery,• flexibility

8/18/2019 mascch04-12e

15/26




•

Environmental uncertainty – a lack of complete information regarding what

exists and what developments may occur in theexternal environment

• Two dimensions of environmentaluncertainty:

– Degree of complexity – Rate of change

8/18/2019 mascch04-12e

16/26



Figure 4.2 Dimensions of uncertainty

8/18/2019 mascch04-12e

17/26



Takeaway 3: Environment and Innovation

•

Innovation - process of putting new ideas intopractice• Business innovations

• Product innovation• Process innovation• Business model innovation

8/18/2019 mascch04-12e

18/26



Takeaway 3 : Environment and Innovation

•

Social business innovations – find ways touse business models to address importantsocial problems

8/18/2019 mascch04-12e

19/26




The innovation process:Step 1: Imagining

Step 2: DesigningStep 3: Experimenting

Step 4: AssessingStep 5: Scaling

Reverse innovation – innovation can come from anylevel in the organization or location

8/18/2019 mascch04-12e

20/26




•

Disruptive innovation – createsproducts/services that become so widelyused that they largely replace prior practicesand competitors

8/18/2019 mascch04-12e

21/26



Takeaway 4: Environment and Sustainability

•

Sustainability – commitment to protect therights of present and future generations asco-stakeholders of present-day naturalresources

8/18/2019 mascch04-12e

22/26

8/18/2019 mascch04-12e

23/26

8/18/2019 mascch04-12e

24/26




Triple Bottom Line: Three P’s of organizationalperformance

Profit

PeoplePlanet

8/18/2019 mascch04-12e

25/26




•

Sustainable business – operates in ways thatmeets the needs of consumers whileprotecting the environment

•

Sustainable/green innovations – help reducean organization’s negative impact; enhancepositive impact

8/18/2019 mascch04-12e

26/26




•

Human sustainability – concern for the effectof management practices on employeephysical and psychological well-being

– Health and wellness programs – Stress management – Minimizing work-family conflict – Control over work –

Fair wages and opportunities

mascch04-12e

Documents

Transcript of mascch04-12e