3. The Organization and Its Environments Owners Employees Physical environment Board of directors Culture Competitors International dimension Political- legal dimension Technological dimension Sociocultural dimension Economic dimension Regulators Customers Strategic partners Suppliers Internal environment Task environment External environment General environment
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5. McDonald’s General Environment Figure 3.2 McDonald’s International Dimension • Restaurants in 115 countries • About two-thirds of sales from outside the United States Political-Legal Dimension • Government food standards • Local zoning climate • General posture toward business regulation Technological Dimension • Improved information technology • More efficient operating systems Sociocultural Dimension • Demographic shifts in number of single adults and dual-income families • Growing concerns about health and nutrition Economic Dimension • Strong economic growth • Low unemploy- ment • Low inflation Internal environment Task environment External environment General environment
13. Environmental Change and Complexity Least uncertainty Moderate uncertainty Moderate uncertainty Most uncertainty Complex Simple Stable Dynamic
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Editor's Notes
3 External Environment General environment is everything outside an organization’s boundaries—economic, legal, political, socio-cultural, international, and technical forces. Task environment is composed of specific groups and organizations that effect the firm. Internal Environment Conditions and forces within an organization.
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The Importance of Organization Culture Culture determines the overall “feel” of the organization, although it may vary across different segments of the organization. Culture is a powerful force that can shape the firm’s overall effectiveness and long-term success. Determinants of Organization Culture Organization’s founder (personal values and beliefs). Articulate the culture through symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of the organization. Corporate success strengthens the culture.
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