Title: Week 8 MANAGING THE ENVIRONMENT
1Week 8MANAGING THE ENVIRONMENT
2Social Responsibility
- Social Responsibility
- The way a companys managers and employees view
their duty or obligation to make decisions that
protect, enhance, and promote the welfare and
well-being of the society as a whole - Corporate Social Responsibility (CSR) The idea
that businesses have obligations to society
beyond the pursuit of profits
3I. The Classical View
- Managements only social responsibility is to
maximize profits (create a financial return) by
operating the business in the best interests of
the stockholders (owners of the corporation). - Expending the firms resources on doing social
good is not preferable
4II. Socioeconomic View
- Managements social responsibility goes beyond
making profits to include protecting and
improving societys welfare. - Corporations are not independent entities
responsible only to stockholders. Firms have a
moral responsibility to larger society to become
involved in social, legal, and political issues.
5Why Be Socially Responsible?
- Building good image and reputation
- Responsibility for bearing the costs of
protecting stakeholders, providing health care
and income, paying taxes and etc - Promoting a climate of caring in general
- Better environment and better society
- Superiority of prevention over cures
6Open Systems
- Open systems
- Organizations are affected by, and affect, their
environment. - They are systems open to external world.
7What is External Environment?
- Set of forces and conditions that operate beyond
an organizations boundaries but affect a
managers ability to acquire and utilize
resources - Components of external environment
- Task Environment
- General Environment
8Forces in the External Environment
9What Should Managers Do to Deal with External
Environment?
- Environmental analysis
- Environmental scanning gt searching for and
sorting through information about the environment - Forecasting and benchmarking
- Adapting to environment changing yourself
- or
- Try to influence/ change the environment
10Task (Competitive) Environment
- Set of forces and conditions that originate with
suppliers, distributors, customers, and
competitors and affect an organizations ability
to obtain inputs and dispose of its outputs
because they influence managers on a daily basis - Direct and immediate impact on organization
- Suppliers
- Distributors
- Customers
- Competitors Potential Competitors
11General (Macro) Environment
- The wide-ranging global, economic, technological,
socio-cultural, demographic, political, and legal
forces that affect an organization and its task
environment - Economic forces
- Technological forces
- Socio-cultural forces
- Demographic forces
- Political/ legal forces
- Global forces
12Task Environment Suppliers
- Suppliers Individuals and organizations that
provide an organization with the input resources
that it needs to produce goods and services - Raw materials, component parts, labor (employees)
- Material shortages and lack of substitutes
- Managers can have stronger bargaining power by
increasing the number of suppliers of an input
13Task Environment Suppliers
- Outsourcing
- Purchase of inputs from foreign suppliers or the
production of inputs abroad to lower production
costs and improve product quality or design - Global outsourcing gt outsourcing across countries
14Task Environment Distributors
- Distributors
- Organizations that help other organizations sell
their goods or services to customers - Examples package delivery companies, super
market retailers
15Task Environment Customers
- Customers
- Individuals and groups that buy the goods and
services that an organization produces - Consumers or businesses
- Identifying an organizations main customers and
producing the goods and services they want is
crucial to organizational and managerial success.
16Task Environment Competitors
- Competitors
- Organizations that produce goods and services
that are similar to a particular organizations
goods and services - Potential Competitors
- Organizations that presently are not in the task
environment but could enter if they choose so
17Potential Competitors Barriers to Entry
- Barriers to Entry gt Factors that make it
difficult and costly for new companies to enter a
particular task environment or industry - Economies of scale
- Cost advantages associated with large operations
- Brand loyalty
- Customers preference for the products of
organizations currently existing in the task
environment. - Government regulations
18Barriers to Entry
19General (Macro) Environment
- The wide-ranging global, economic, technological,
socio-cultural, demographic, political, and legal
forces that affect an organization and its task
environment - Economic forces
- Technological forces
- Socio-cultural forces
- Demographic forces
- Political/ legal forces
- Global forces
20General Environment Economic Forces
- Interest rates, inflation, unemployment, economic
growth, and other factors that affect the general
health and well-being of a nation or the regional
economy of an organization
21General Envrionment Technological Forces
- Technology The combination of skills and
equipment that managers use in the design,
production, and distribution of goods and
services - Technological Forces Outcomes of changes in the
technology that managers use to design, produce,
or distribute goods and services
22General Environment Socio-cultural Forces
- Pressures emanating from the social structure of
a country (or society) or from the national
culture - Social Structure
- The system of relationships established between
individuals and groups in a society - National Culture
- The set of values, attitudes, beliefs, and norms
shared by a majority of the inhabitants of a
country
23General Environment Demographic Forces
- Outcomes of change in, or changing attitudes
toward, the characteristics of a population, such
as age, gender, ethnic origin, race, sexual
orientation, and social class
24General Environment Political Legal Forces
- Outcomes of changes in laws and regulations
- Such as regulation of industries, the
privatization of organizations, and increased
emphasis on environmental protection
25Globalization
- Globalization
- The set of specific and general forces that work
together to integrate and connect economic,
political, and social systems across countries,
cultures, or geographical regions so that nations
become increasingly interdependent and similar - Need of new thinking and new managerial skills
26Globalization
- A shift toward a more open global environment in
which capital flows more freely - Four principal forms of capital
- Human capital gt flow of people
- Financial capital gt flow of money
- Resources capital gt flow of natural resources,
parts, components - Political capital gt flow of power and infleunce
27Globalization
- Companies search for new opportunities to create
profit and wealth. - Declining barriers to international trade and
investment - Free trade, new trade aggreements
- Declining barriers of distance and culture
28Management Skills for The Global Marketplace
- Effective global managers need
- Global strategic skills
- Communication skills
- Cultural intelligence and global mind set
- Transfer of knowledge skills
- Team building skills
- Organization skills
29Next Week Mid-Term Exam
- November 20, 2012 Tuesday
- Hours 1300-1430
- Classes O 001 - O 002 O 003
- Good luck! ?
-
30Exam Content
- Textbook Chapters 1-3-4-5-6
- Chapter-2 is not included
- Powerpoint slides
31Exam Content
- You are responsible for all topics that we have
covered so far BUT please pay special attention
to - Four tasks of management (Chapter 1)
- Levels and skills of management (Chapter 1)
- Big five personality traits and others (Chapter
3) - Emotions, values, job attitudes and
organizational culture (Chapter 3)
32Exam Content
- Diversity of the workforce sources of diversity
management of diversity (Chapter 5) - Stakeholders and managers responsibilities and
ethical behavior to them (Chapter 4) - Rules and sources of ethical decision-making
social responsibility (Chapter 4) - External environment Components of task and
general environments how each one can effect the
company and managers (Chapter 6)
33Exam Format
- Multiple choice questions ( 60-70)
- Short-essay questions (1-2 Qs 30-40)
- No definition will be asked do not memorize
anything - I will be seeking to receive your take opinions
comments on a managerial issue based on the
concepts and ideas discussed in this course.