PRINMAN

Prepared by: Go, Valerie

Malinao, KarloMaralit, Pauline

Umbao, KimberlyAOG

The External Environment• General • Task• Internal

Source: Daft, R. L. 2008. Management. USA: Thomson Corporation

General Environment• the layer of the external environment that affects organization indirectly• includes dimensions like:

International TechnologicalSocio-culturalEconomicLegal-political

International Dimension• represents events originating in foreign countries as well as opportunities for U.S. companies in other countries

• Today, every company has to compete on a global basis. High-quality, low-priced automobiles from Japan and Korea have permanently changed the American automobile industry.

Technological Dimension• includes scientific and technological advancements in the industry and society at large

• Today, computer networks, Internet access, videoconferencing capabilities, cell phones, laptops, etc. are practically taken for granted as the minimum tools for doing business.

Socio – Cultural Dimension• representing the demographic characteristics, norms, customs, and values of the population within which the organization operates

• Today’s demographic profiles are the foundation of tomorrow’s workforce and consumers.

Economic Dimension• representing the overall economic health of the country or region in which the organization operates

• Consumer purchasing power, the unemployment rate, and interest rates are part of organization’s economic environment.

Legal – Political Dimension

• includes federal, state, and local government regulations and political activities designed to influence company behavior

Task Environment

• includes the sectors that conduct daily transactions with the organization and directly influence its basic operations and performance

Task Environment

• direct relationship with the organization, among them:

CustomersCompetitorsSuppliersLabor Market

Customers

• people and organizations in the environment who acquire goods or services from the organization

• Customers are important because they determine the organization’s success.

Competitors

• other organizations in the same industry or business that provide goods or services to the same set of customers

Suppliers

• people and organizations who provide the raw materials the organization uses to provide its output

Labor Market

• the people available for hire by the organization

• Every organization needs a supply of trained, qualified personnel.

Internal Environment

• includes the elements within the organization’s boundaries

Corporate Culture

• Culture – set of key values, beliefs, understandings, and norms that members of an organization share

• Culture Leadership - Culture Leader

Types of Cultures

• Adaptability culture – a culture characterized by values that support the company’s ability to interpret and translate signals from the environment into new behavior responses.

Types of Cultures

• Achievement culture – a results-oriented culture that values competitiveness, personal initiative, and achievement.

Types of Cultures

• Involvement culture – a culture that places high values on meeting the needs of employees and values cooperation and equality.

• Consistency culture – a culture that values and rewards a methodical, rational, orderly way of doing things.

• Symbol – an object, act, or event that conveys meaning to others.

• Story – a narrative based on true events that is repeated frequently and shared among organizational employees.

• Hero – a figure who exemplifies the deeds, character, and attributes of a strong corporate culture.

• Slogan – a phrase or sentence that succinctly expresses a key corporate value.

• Ceremony – a planned activity that makes up a special event and is conducted for the benefit of an audience.

Culture Leadership

• a one way managers shape cultural norms and values to build a high-performance culture

Cultural Leader

• a manager who uses signals and symbols to influence corporate culture