The Environment of Management
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Transcript of The Environment of Management
THE ENVIRONMENT
OF MANAGEMENT
CORPORATE CULTURE AND THE ENVIRONMENT
External environment
General environment
Technological – tools that make business be more effective to increase the production
Natural – sensitivity towards earth’s diminishing natural resources and the environment impact of the products and business practices
Sociocultural – demographic characteristics like norm, customs, and values of general population
Economics – general economic health like consumer purchasing power, the unemployment and interest rates of particular country or region
Legal/politic –political activities designed to influence company behaviour affected by government regulation
International - huge competitive in dealing with others countries legal, political, sociocultural and economic factors
Task environment
Customers – people and organizations in the environment that acquire goods or services from that particular organization.
Competitors – other organizations in the same industry that provide goods or services to the same set of consumers
Suppliers – provide the raw materials to the organization use to produce its product
Labour market – people who can be hired to work for the organization
CORPORATE CULTURE AND THE ENVIRONMENT
Internal environment
Symbols – object, act, or event that conveys the meaning to others and interaction with the environment
Heroes – role model for employees to follow and attributes of a strong culture
Stories – symbolized the firm’s vision and value, make employees personalized and absorb it.
Slogans – sentence that succinctly express a key corporate value and reflected the organization’s image
Ceremonies – activity at a special event that can benefits and giving appreciation to the employees
CORPORATE CULTURE AND THE ENVIRONMENT
types of culture
Type of culture
Adaptability culture – manager requires fast response and high-risk decision making by encourage and rewarding creativity, experimentation and risk-taking
Achievement culture – values of competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results
Involvement culture – acknowledge employee needs, the organization can create caring and family-like environment
Consistency culture – following the rules, giving period to complete a certain task will drive workers to finish on time and on budget
MANAGING IN A GLOBAL ENVIRONMENT
borderless world
Borderless world
Domestic stage – limited market potential only at home country, with all production and marketing facilities located at home
International stage – product design, marketing, advertising are adapted to the specific needs of each country, requires a high level of sensitivity to local values and interests
Multinational stage – delivering a similar product to multiples country. The marketing and production facilities located in many countries.
Global – make sales and acquiring resources in whatever country offers the best opportunities and lowest costs
MANAGING IN A GLOBAL ENVIRONMENT
economic environment
Economic environment
Resource and product markets
Economic interdependence
MANAGING IN A GLOBAL ENVIRONMENT
sociocultural environment
Social value
Communication differences
Other culture characteristics
Developing culture intelligence
ETHICS AND SOCIAL RESPONSIBILITY
Definition
ethics and social responsibility
- Ethic is the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong. An ethic issue is present in a situation when the actions of a person or organizations may harm or benefit others.
- Managers are the role models. The most important ways mangers create ethical and socially responsible organizations is by practicing ethical leadership. However, unethical managers seek to serve their own needs and interests at the expense of stockholders.
ETHICS AND SOCIAL RESPONSIBILITY
ethical decision making
ethical decision making
Utilitarian approach – produce the greatest good for the greatest number
Individualism approach – promote the individual’s best long-term interests
Moral right approach – avoid to interfering other’s privacy
Justice approach – decisions must base on standard equity, fairness and impartially
Virtue ethics approach – develops good character traits leading to be a virtuous person
Practical approach – right or good and based decision on prevailing standards of the large society
SMALL BUSINESS START-UPS
definition
definition
Small businesses are determined as one that is independently owned and operated, is organized for profit and is not dominant in its field of operation.
The small businesses generally proceed through five stages of growth which are start-up, survival, success, take off and resources maturity
SMALL BUSINESS START-UPS
launching an entrepreneurial start-up
launching an entrepreneurial start-up
• Starting with an idea
• Writing the business plan
• Choosing a legal structure
• Arranging financing
• Tactics for becoming a business owner
• Starting online business
SMALL BUSINESS START-UPS
managing a growing business
managing a growing business
Stage of growth – start-up, survival, success, take off, resources maturity
Planning – define goal and decide on the task and use the of resources needed
Organizing – separate tasks according the departments
Leading – motivate others to perform well
Controlling – implement structured control system, control the limited resources