External environment and organizational culture

1. External environment &
Organizational Culture
Waleed Ghalwash

2. We did what any
responsible company would
do, Competition can be
fierce, but it must also be
FAIR and LEGAL.
Pepsi spokesman (2006).

3. What is External Environment of an
Organization?

4. Groups, persons and factors outside the
company that affect the company's ability to
function. and with whom an organization
interacts and conducts business.
It includes 2 levels:
➔ Specific (Task) Environment
➔ General Environment
What is External Environment of an Organization?

5. Includes important stakeholders such as:
➔ Customers
➔ Suppliers
➔ Competitors
➔ Regulators
➔ Strategic partners
What is External Environment of an Organization?
Specific (Task) Environment
C95
Competitors
eSpace
Stareware
Sarmady
Customers
Almasryalyoum
Magrabi
57357
Suppliers
Rackspace
Amazon
Cloudflare
Strategic
Partners
JWT
BMGRegulators
ITIDA
MCIT

6. The general or Macroenvironment is all
background conditions in the external
environment of the organization including:
➔ Political
➔ Economic
➔ Socio-Cultural
➔ Technological
➔ Environment (Natural Environment)
➔ Legal
What is External Environment of an Organization?
General Environment
Political
Legal
Political posture
toward exporting IT
Technological
Modern frameworks
More efficient OS
ERP
Sociocultural
Demographic shift in
number of internet
users.
Economic
Dimension
High inflation rate
weak economy
Natural
Environment
Quit city
Stable conditions
C95

8. Successful companies in the new economy
will need to focus on:
➔ Knowledge:
◆ Customer behavior
◆ Markets
◆ Economies
◆ Technology
➔ Learning.
➔ Speed.
What is External Environment of an Organization?

9. Value Creation
Creating a value to
satisfy the needs of the
Stakeholders.

10. Competitive Edge
a core competency that
clearly sets an
organization apart from
competitors and gives it
an advantage over them in
the marketplace

11. How can you achieve a Competitive Edge?
➔ Products
➔ Pricing / Cost efficiency
➔ Customer service
➔ Quality
➔ Keeping promises, reliability
➔ Knowledge
➔ Ease of doing business.
This will drive the Organizational
Culture.

12. What is the driver of your organization culture?

13. What Customers want?

14. What Customers want?
➔ High quality.
➔ Low price.
➔ On-time delivery.
➔ Great service.

15. What Customers want?

16. Environmental
Uncertainty
A lack of complete
information regarding what
exists and what
developments may occur in
the external environment.
Two dimensions of
environmental uncertainty:
➔ Degree of complexity
➔ Rate of change

17. Environmental Uncertainty
High - Moderate
Uncertainty
High Uncertainty
Requires great flexibility &
adaptation
Low - Moderate Uncertainty
Low
Uncertainty
HighLow
Complexity
of Environment
HighLow
Rateofchange
inEnvironment

18. Organizational
Culture

19. Organizational Culture
Shared beliefs and values that develops within an organization
and guides the behavior of its members.
The way we do things around here.(Values, Symbols and
Practices)
Implications:
➔ Culture is Perception.
➔ Culture is Shared.
➔ Culture is Descriptive.

20. Strong Cultures
Benefits:
➔ Commit members to do things that are in
the best interests of the organization.
➔ Encourage functional work behavior.
➔ Aids in the recruitment and
socialization of new employees.
Cultures in which key values are deeply and
widely held, and have strong influence on
organizational members.

21. Dimensions of Organizational Culture

23. Organizational culture and impact on performance

24. Cultural Contrasts
Priorities of culture values:

25. A Socio-Cultural
Environment
DIVERSITY
➔ People of different
backgrounds are an
increasing percentage
of the workforce. More
women are working.
➔ People with
disabilities are
gaining more access to
the workplace. Average
age of workers is
increasing.
➔ Religious diversity of
workers is increasing.

26. Barriers to Women & Minority

27. Leadership approaches to diversity
Managing Diversity
Achieve full diverse
human resources
utilization
Valuing Difference
Build quality
relationships with
respect for diversity
Affirmative Action
Create upward mobility
for minorities and women

28. Which organizational culture fits you?
➔ A culture that values Talent, entrepreneurial activity, and
performance over commitment: one that offers large financial
rewards & individual recognition.
➔ A culture that stresses Loyalty, working for the good of the
group, and getting to know the right people: one that believes
in “generalists” and step-by-step career progress.
➔ A culture that offers little job security: stresses that every
individual can make a difference, and focuses attention on
“turn-around” opportunities.
➔ A culture that values long-term relationships: one that
emphasizes career development, regular training, and advancement
based on gaining functional expertise.

29. Thank You