Environmental Complexity: the number of external factors in the environment that affect organisations
Resource Scarcity Resource Scarcity The degree to which an organization’s external environment has an abundance or scarcity of critical organisational resources
Natural Resources There is general concern over the scarcity of natural resources. Companies like Weyerhauser work extra hard to correct the misperception that they are "using up" valuable resources. In fact, through careful planning and good management, Weyerhauser is able to both guarantee its lumber resources and be a good environmental steward.
Technological Component Information Output Input Technology-- Knowledge Tools Techniques Raw Materials Services Products
Impact of Technology Technology can be a great benefit or a daunting threat. MP3 players have created a tremendous new business opportunity for some, like Apple, Creative, and other manufacturers. But record labels have suffered from the rapid acceptance of digital music and persistent file swapping.
Managers must be educated about the laws, regulations, and potential lawsuits that could affect business
Specific Environment Customer Competitor Supplier Industry Regulation Advocacy Group
Customer Component Monitoring customer wants and needs is critical for business success Reactive customer monitoring: responding to problems, trends, and events Proactive customer monitoring: anticipating problems, trends, and events
Groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
Techniques to try to influence companies
Advocacy Groups Examples The Body Shop has emphasised its support for a wide range of issues around the globe. Its slogans included: Against Animal Testing, Support Community Trade, Activate Self Esteem, Defend Human Rights, and Protect Our Planet. PETA is a well-known advocacy group that attempts to influence consumers and companies to pursue animal-friendly practices.
Making Sense of Changing Environments Acting on Threats and Opportunities Interpreting Environmental Factors Environmental Scanning Evaluating External Environments
3. Unconsciously Held Assumptions and Beliefs BELIEVED
Changing Organisational Cultures Behavioral addition : is the process of having managers and employees perform a new behavior Behavioral substitution : is having managers and employees perform a new behavior in place of another behavior Change visible artifacts : such as the office design and layout, company dress codes, etc.