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Ch04

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  • 1. The Manager’s EnvironmentMultiMedia by 2002 South-
  • 2. Environmental ScanningThe process of collecting information aboutThe process of collecting information about the external environment. the external environment. Identifies and analyzes trends. Identifies and analyzes trends. Allows managers to determine best response to Allows managers to determine best response to an environmental change. an environmental change. Identifies signals of change. Identifies signals of change. MultiMedia by 2002 South-
  • 3. The Organization as an Open System External EnvironmentIndirectly Interactive Forces Economic Legal/Political Sociocultural Technological Natural MultiMedia by 2002 South-
  • 4. The Organization as an Open System External EnvironmentIndirectly Interactive Forces Economic Legal/Political Sociocultural Technological Natural Directly Interactive Forces Owners Suppliers/Partners Competitors Customers Labor Force MultiMedia by 2002 South-
  • 5. External EnvironmentIndirectly Interactive Forces Economic Legal/Political Sociocultural Technological Natural Directly Interactive Forces Owners Suppliers/Partners Competitors Customers Labor Force Inputs People Information Facilities Infrastructure Equipment Machinery Materials Supplies Finances Internal Environment MultiMedia by 2002 South-
  • 6. External EnvironmentIndirectly Interactive Forces Economic Legal/Political Sociocultural Technological Natural Directly Interactive Forces Owners Suppliers/Partners Competitors Customers Labor Force Inputs Processing People Transformation Information through Facilities applications of Infrastructure workforce Equipment expertise and Machinery technology Materials Supplies Finances Feedback Internal Environment MultiMedia by 2002 South-
  • 7. External EnvironmentIndirectly Interactive Forces Economic Legal/Political Sociocultural Technological Natural Directly Interactive Forces Owners Suppliers/Partners Competitors Customers Labor Force Inputs Processing Outputs People Transformation Products Information Services through Facilities Profits or Losses applications of Infrastructure workforce Customer Equipment Satisfaction expertise and Machinery technology Ethical Behavior Materials Supplies Socially Responsible Finances Feedback Behavior Internal Environment MultiMedia by 2002 South-
  • 8. Company’s Mission Primary reason for existence. Is the “touchstone.” Should include whom it serves, how, and why. Most effective are easily recalled. Provide direction and motivation for the organization. MultiMedia by 2002 South-
  • 9. Company’s Vision•• What it wants to evolve into over time. What it wants to evolve into over time.•• Made real by engaging the minds, as well as the Made real by engaging the minds, as well as the hearts, of others. hearts, of others. Company’s Core Values•• The fundamental principles it will not compromise. The fundamental principles it will not compromise.•• Serves as a baseline for actions and decision making. Serves as a baseline for actions and decision making.•• Guides employees in the organization’s intentions Guides employees in the organization’s intentions and interests. and interests. MultiMedia by 2002 South-
  • 10. Intellectual Capital Wisdom Knowledge It’s collective experiences ExpertiseMultiMedia by 2002 South-
  • 11. Organizational Culture  Shared values  Shared values  Beliefs  Beliefs  Philosophies  Philosophies  Experiences  Experiences  Customs  Customs  Norms of behavior  Norms of behaviorMultiMedia by 2002 South-
  • 12. Leadership Means influencing others. Means influencing others. Leaders should encourage and enable followers. Leaders should encourage and enable followers. Is influenced by elements both inside and outside an Is influenced by elements both inside and outside an individual. individual. Involves setting an example. Involves setting an example. Leaders must “walk like they talk.” Leaders must “walk like they talk.” Creates a generative shared vision. Creates a generative shared vision. Provides the catalyst for perpetual learning. Provides the catalyst for perpetual learning. MultiMedia by 2002 South-
  • 13. Organizations  Not defined or limited by horizontal, vertical, or external boundaries.BoundarylessOrganizations  Share many of the characteristics of flat organizations.  Strong emphasis on teams. MultiMedia by 2002 South-
  • 14. Learning Organization1 Able to adapt and respond to change. 2 Skilled at creating, acquiring, and transferring knowledge. 3 Modifying its behavior to reflect new knowledge and insights. MultiMedia by 2002 South-
  • 15. Managers Facilitate Learning by SharingSustaining a sense of Aligning thecommunity organization Developing strong cultureMultiMedia by 2002 South-
  • 16. First, companies increased their use of outsourcing.Fourth, companies are Trends in Second, companiesmore willing to procure develop close alliances needed supplies from Supplier with outside suppliers.anywhere in the world. Practices Third, “deep” alliances with fewer, more dependable suppliers.MultiMedia by 2002 South-
  • 17. Businesses Compete on the Basis of • Price • Quality • Selection • Product features and performance • Customer servicesMultiMedia by 2002 South-
  • 18. Major Indirect Interactive Forces Economic Forces-levels of taxes, wages, prices, interest rates, personal spending and saving, business spending and profits, inflation, and the state of the entire economy. Legal/Political Forces-statutes enacted by legislatures, court decisions, regulations and rulings, local regulatory agencies, and agreements between and among governments. MultiMedia by 2002 South-
  • 19. Major Indirect Interactive Forces (cont’d) Sociocultural Forces-influences and contributions from diverse groups outside an organization. Technological Forces-processes, materials, knowledge, and other discoveries resulting from research and development activities. Natural Forces-climate, weather, geography, and geology. MultiMedia by 2002 South-
  • 20. Challenges Challenges Risks Risks Environmental Forces Create:OpportunitiesOpportunities Changes Changes MultiMedia by 2002 South-
  • 21. Boundary Spanning Requires current information about what is happening or likely to happen. Look for developments that can influence plans, forecasts, decisions, and organizations. Keep up to date and establish networks.MultiMedia by 2002 South-

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