Book: “Managing the Organitational Environment”

1. Summary Chapter Five:
“Managing the Organitational Environment”
This chapter are divideinto five parts,1. It’s about what is the organitational environment?, 2. Talk about the
task environment, 3.Describethe general environment, 4.Analyze managing the organizational environment,
and the last one 5. Emphasizes relevant aspects and give a summary and review.
PART I: What is the organitational environment?
A. It gives a definition of organitational environment: is a set of forces and conditions outside the
organization’s boundaries that have the potential to affect the way the organization operates.
Where; 1. Changes in the environment create opportunities for managers to strengthen their
organizations, and 2. However, other changes pose a threat if organi zations are unable to adapt.
B. The task environment is the set of forces and conditions thataffectan organization’s ability to obtain
inputs and dispose of its outputs. These have the most immediate and direct effect on mangers
because they pressure and influence managers on a daily basis.
C. The general environment is the wide-ranging economic, technological, sociocultural, demographic,
political and legal, and global force that affects the organization and its task environment.
D. Some management theorists refer to another kind of environment, the internal environment,
consisting of the forces operating within an organization and stemming from the organization’s
structure and culture.
PART II: The Task Environment
Task
Environment
Suppliers
In return, the
supplier receives
compensation for
those goods and
services
An important
part ofa
manager’s jobis
to ensurea
reliablesupply of
input resources
Distributors
The changing
nature of
distributors and
distribution
methods can also
bring
opportunities and
threats for
managers.
The power ofa
distributor may
be weakened if
there aremany
distribution
options.
Customers
Changes in the
number and
types of
customers or
changes in
customers’ tastes
and needs also
result in
opportunities and
threats.
An organization’s
success depends
on its response to
customers.
Competitor
Are organizations
that produce
goods and
services that are
similar toa
particular
organization’s
goods and
services.
Barriers to entry
result from:
Economies of
scale,Brand
loyalty or
government
regulations
Industry Life
Cycle
1. Birth, 2.
Growth, 3.
Shakeout,4.
Maturity, 5.
Decline
Culture ofthe
Industry
Environment
As you recall,
culture is
representedby
the
organization’s
values, norms
and beliefs and
shapes behavior
Forces is a result from the
actions ofsupplier,
distributors, customers,
and competitors.

2. PART III: The General Environment
Economic Forces, such as interest rates, inflation, unemployment, and
economic growth, affect the generalhealthandwell being ofa nation.
Technological Forces, the outcomesof changes inthe technologythat
managers use to design, produce, or distribute goods and services
Sociocultural Forces comprises the Social structure andthe national
culture, and are pressures emanating fromthe socialstructure of a country
orfrom the national culture.
Demographic Forces, are outcomesof changes in, or changing attitudes
toward, the characteristics of a population, suchas age, gender, ethnic
origin, race, sexual orientation, and social class.
Political-Legal Forces, are outcomesof changesinlaws andregulations.
GlobalForces, are outcomes ofchanges in internationalrelationships,
changes in nations’ economic, political, and legalsystems, andchanges in
technology.