MGMT 3000 Lecture 5 Outline of Last Lecture I. General and Specific Environments II. General Environment Components a. Economy b. Technological c. Socioculturald. Political/legal III. Specific Environmenta. Customer b. CompetitorOutline of Current Lecture I. Supplier Component a. Buyer dependenceb. Supplier dependence II. Advocacy groups III. Environmental Scanning IV. Internal Environments a. Organizational cultures b. SelectionOutline of Current LectureSupplier Component Suppliers are companies that provide material, human, financial and informational resources to other companies Buyer Dependence is the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier’s sales and the difficulty of finding other buyers of its products Ex. Apple buys the chips, the retina displays from Samsung Samsung has buyer dependence on Apple because now Apple doesn’t want to buy their products any more Supplier dependence is the degree to which a company relies on a supplier because of the importance of the supplier’s product to the company and the difficulty of finding other sources for that product Ex. Rocket engines are made in Russia due to bad relations with Russia. Russia wants to stop supplying the rocket engines These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Neither one is a good practice and has a lot of risks and can lead to: Opportunistic behavior: taking advantage of supplier and buyer dependence and one party benefits at the expense of the other Relationship Behavior: Try to nurture mutually beneficial long-term relationships with buyers/ suppliers Industry regulation: Consists of regulations and rules that govern the business practices and procedures of specific industries, businesses and professions. Ex. There is a lot of regulation against Uber making it hard to operate Cost of complying with federal legislations is roughly 660 Billion for manufacturing Advocacy groups: Groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions Cannot force organizations to change their practices Public communications approach relies on voluntary participation by the news media and advertising industry to send out an advocacy group’s message Media advocacy approach typically involves framing the group’s concerns as a public issue; exposing questionable, exploitative or unethical practices; and creating controversy that is likely to receive extensive news coverage. Product boycott is a tactic in which an advocacy group actively tries to persuade consumers not to purchase a company’s product or service. Ex. PETA against McDonalds Environmental scanning: Scanning the environment for events or issues that might affect an organization Situational Analysis SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats First managers view issues as threats or opportunities After scanning for information on environmental events and issues and interpreting them as threats or opportunities managers decide how tor respond to the factors 3 steps for managers: 1. Environmental scanning 2. Interpreting factors 3. Acting on threats and opportunities Internal Environments Internal environment consists of trends and events within an organization that affect the management, employees and organizational culture Organizational cultures: Key values, beliefs and attitudes shared by members of the organization The secret sauce to company’s success and employee happiness Primary source is the founder of the companyOrganizational stories are told to make sense of organizational events and changes to emphasize culturally consistent assumptions, decisions, and actions Organizational heroes are organizational people admired for their qualities and achievement within the organization Easy to identify; difficult to replicate or change Successful organizational cultures have these components: Adaptability is the ability to notice and respond to changes in the organization’s environment Consistent organization cultures: A company actively defines and teaches organizational values, beliefs and attitudes Employee Involvement in decision-making tends to have employees who feel a greater sense of ownership and responsibility Company mission is the business’s purpose or reason for existing Organization’s strategic purpose and direction Levels of organizational culture 1.Seen level: What the place looks like when you go there Symbolic artifacts, Dress code, what is believed, the design of the workplace 2. Values and beliefs expressed by people in the company Can’t be seen but becomes clear if you carefully listen to what people say and observe how decisions re made 3. Unconsciously held assumptions and beliefs about the company are buried deep below the company Changing organizational culture: It can be very difficult so instead managers focus on parts of organizational culture they can control Behavioral Addition: Having managers and employees perform a new behavior Behavioral Substitution: Having managers and employees perform a new behavior in the place of another behavior Visible artifacts: are the visible signs of a no organization’s culture such as dress code, office design etc. Selection: Gathering information about job applicants Managers must define and describe organizational culture Use selecting tests, instruments, exercise to measure values, and beliefs in job applicants First step: Test job applicants to determine how they fit with the companies decide