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Organizational Environments and Cultures

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... You Do about the changing environment faced by All-World Travel? ... Wal-mart travel. Web-based travel agencies. What would you do? The Environment of Management ... – PowerPoint PPT presentation

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Title: Organizational Environments and Cultures


1
Chapter 2
  • Organizational Environments and Cultures

2
What Would You Do about the changing environment
faced by All-World Travel?
  • Airlines cut commission payments
  • Wal-mart travel
  • Web-based travel agencies
  • What would you do?

3
The Environment of Management
  • The organizations environment can be external
    and, internal.
  • External environment consists of everything
    outside organization that might affect it. These
    are classified as general and task environments.
  • What is internal environment?

4
Environmental Complexity
  • The number of external factors in the environment
    that affect organizations.
  • Simple environments.
  • Have few environmental factors.
  • Complex environments.
  • Have many environmental factors.

5
Environmental Munificence
  • The degree to which an organizations external
    environment has an abundance or scarcity of
    critical organizational resources.
  • For many companies, qualified employees are one
    of the scarcest resources around.

6
Uncertainty
  • Extent to which managers can understand or
    predict which environmental changes and trends
    will affect their businesses.
  • Environmental change, complexity munificence
    all impact uncertainty.

7
Environmental Change, Complexity, Munificence
Adapted from Figure 2.2
8
General Specific Environments
Specific Environment
Sociocultural Component
Economy
General Environment
Customers
Competitors
Business A
Customers
Competitors
Advocacy Groups
Business B
Suppliers
Advocacy Groups
Industry Regulation
Suppliers
Industry Regulation
Political/Legal Component
Technological Component
Adapted from Figure 2.3
9
The General Environment Consists of
Economic Dimension
International Dimension
j
Little or No Corporate Control
Political-Legal Dimension
Technological Dimension
Sociocultural Dimension
10
The Task or Specific Environment
Strategic Allies
Some Corporate Control
Customers
Regulators
Competitors
Suppliers
11
Federal Regulatory Agencies Commissions
Adapted from Table 2.1
12
Federal Regulatory Agencies Commissions
Adapted from Table 2.1
13
Making Sense of Changing Environments
  • Environmental scanning
  • Interpreting environmental factors
  • Acting on threats and opportunities

14
Cognitive Maps
Success, Profits

Good location


-
-
Kmart
-
-
Good value Good service
Large selection of latest fashions
Low-cost strategy

-


-


-
Low rent taxes
Large mall 20 minutes away
Wal-Mart
Adapted from Figure 2.5
15
The Internal Environment
Major Corporate Control Owners
Employees Board of Director Culture
16
Organizational Cultures Creation, Success, and
Change
  • Creation and maintenance of organizational
    cultures
  • Successful organizational cultures
  • Changing organizational cultures

17
What Really Happened at All-world Travel?
  • Take a Guess!
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