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    Chapter 2 - The Environment and Corporate Culture

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    Selena Reid
    The document discusses the external environment that organizations operate within, including the general, task, and internal environments. The general environment consists of sectors like technological, sociocultural, economic, legal-political, and natural factors. The task environment includes customers, competitors, suppliers, and the labor market. Organizations must adapt to changes in their environments through boundary spanning, partnerships, mergers and acquisitions. The internal environment is the corporate culture, which is shaped by values, beliefs, symbols, stories and heroes. Culture plays a key role in performance and innovation. Leaders articulate a vision and reinforce culture through their actions.

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    Chapter 2 - The Environment and Corporate Culture

    Uploaded by

    Selena Reid
    68 views20 pages
    The document discusses the external environment that organizations operate within, including the general, task, and internal environments. The general environment consists of sectors like technological, sociocultural, economic, legal-political, and natural factors. The task environment includes customers, competitors, suppliers, and the labor market. Organizations must adapt to changes in their environments through boundary spanning, partnerships, mergers and acquisitions. The internal environment is the corporate culture, which is shaped by values, beliefs, symbols, stories and heroes. Culture plays a key role in performance and innovation. Leaders articulate a vision and reinforce culture through their actions.

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    The document discusses the external environment that organizations operate within, including the general, task, and internal environments. The general environment consists of sectors like technological, sociocultural, economic, legal-political, and natural factors. The task environment includes customers, competitors, suppliers, and the labor market. Organizations must adapt to changes in their environments through boundary spanning, partnerships, mergers and acquisitions. The internal environment is the corporate culture, which is shaped by values, beliefs, symbols, stories and heroes. Culture plays a key role in performance and innovation. Leaders articulate a vision and reinforce culture through their actions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    68 views20 pages

    Chapter 2 - The Environment and Corporate Culture

    Uploaded by

    Selena Reid
    The document discusses the external environment that organizations operate within, including the general, task, and internal environments. The general environment consists of sectors like technological, sociocultural, economic, legal-political, and natural factors. The task environment includes customers, competitors, suppliers, and the labor market. Organizations must adapt to changes in their environments through boundary spanning, partnerships, mergers and acquisitions. The internal environment is the corporate culture, which is shaped by values, beliefs, symbols, stories and heroes. Culture plays a key role in performance and innovation. Leaders articulate a vision and reinforce culture through their actions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 20

    Chapter 2

    The Environment and Corporate


    Culture
    The External Environment
    • The elements of the world constantly change
    • Environment encompasses far-reaching global changes

    • General Environment:
    • Outer layer that directly affects organization

    • Task Environment:
    • Sectors that conduct transactions with the organization

    • Internal Environment:
    • Elements within the organization boundaries
    The General Environment
    General Environment: International
    • Globalization influences all other aspects of the external environment
    • New competitors, customers, suppliers
    • Changes in social, technological and economic trends

    • All organizations must compete and think globally

    • Economic power has shifted to China and India

    • The global environment is complex and ever-changing


    General Environment: Technological
    • Technology has created massive changes for organizations

    • Technology has become the tool for doing business

    • Advances are impacting organizations and managers


    General Environment: Sociocultural
    • Demographic characteristics, norms, customs, and values

    • The Hispanic population is expected to increase 188%

    • Generation Y is flooding the workplace with new demands

    • Single-father households are the fastest-growing type of living arrangement

    • Aging workforce demographics are changing all over the world


    General Environment: Economic
    • Economic health of the country/region
    • Extended globally with uncertainty

    • Consumer buying power

    • Merger and acquisition opportunity

    • Growth in the small business sector


    • Significant portion of U.S. economy
    General Environment: Legal-Political
    • Government regulation; state, local and federal
    • Political activities
    • Government agencies and regulation

    • Managers must recognize the power of pressure groups


    • Work to influence companies to behave socially responsible
    General Environment: Natural
    • Organizations must be sensitive to the environment
    • Plants, animals, rocks and natural resources

    • The natural dimension does not have a voice of its own

    • Environmental groups advocate action/policy


    • Reduce pollution
    • Develop renewable energy
    • Climate change/global warming
    Task Environment

     Customers

     Competitors

     Suppliers

     Labor Market
    External Environment and Uncertainty
    Adapting to the Environment

     Boundary-spanning roles

     Interorganizational partnerships

     Mergers/joint ventures

     Shift from adversarial orientation


    to partnership orientation
    The Shift to a Partnership Paradigm
    The Internal Environment: Corporate Culture
    Corporate culture is the set of key values, beliefs,
    understandings, and norms that members of an
    organization share

     Symbols

     Stories

     Heroes

     Slogans

     Ceremonies
    Levels of Corporate Culture
    Environmentally Adaptive Versus
    Unadaptive Corporate Cultures
    Four Types of Corporate Cultures
    Shaping Corporate Culture for
    Innovative Response
    • Corporate culture plays a key role in organization climate

    • Successful companies balance culture and performance


    Combining Culture and Performance
    Cultural Leadership
     Articulate a vision for the organizational culture that employees can believe in.

     Heeds the day-to-day activities that reinforce the cultural vision.

    Leaders communicate through words and actions.

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