PowerPoint PresentationLearning ObjectivesRemember this Figure from Chapter 1? The Process of Management3.1 The General (Macro), Task (Competitive), & Internal EnvironmentsExternal EnvironmentLegal-PoliticalThe EconomyInternationalTechnologySocio-cultural & Natural EnvironmentTask EnvironmentEnvironmental Uncertainty Lack of information needed to understand or predict the future3.4 External Environment and UncertaintyAdapting to the Environment3.5 The Shift to a Partnership ParadigmThe Internal Environment: Organizational CultureLevels of Corporate Culture3.7 Four Types of Corporate CulturesHigh Performance CultureChapter 3:The Environment & Corporate CultureLearning ObjectivesLO 1 Describe how environmental forces influence organizations and how organizations can influence their environmentsLO 2 Distinguish between the macro/external environment and the task/competitive environmentLO 3 Identify elements of the competitive environment.LO 4 Summarize how organizations respond to environmental uncertaintyLO 5 Define elements of an organization’s cultureLO 6 Discuss how an organization’s culture affects its response to its external environment2-2Remember this Figure from Chapter 1? The Process of Management33.1 The General (Macro), Task (Competitive), & Internal Environments4External Environment•General/Macro-environment•Task/Competitive environment•Internal EnvironmentLegal-Political•Regulators include agencies such as:•Occupational Safety and Health Administration (OSHA)•Interstate Commerce Commission (ICC)•Equal Employment Opportunity Commission (EEOC)•National Labor Relations Board (NLRB)•And many others2-6The Economy•The economic environment dramatically affects managers’ ability to function effectively and influences their strategic choices. 1)2)3)4)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 globallyTechnology•Technological advances create new products, advanced production techniques, and better ways of managing and communicating.•As technology evolves, new industries, markets, and competitive niches develop.Socio-cultural & Natural Environment•Demographics•Cultural and Social Values•Protecting the natural environment has grown in importance2-10Customers CompetitorsSuppliersLabor MarketTask EnvironmentCopyright ©2012 by South-Western, a division of Cengage Learning. All rights reserved.11Environmental Uncertainty Lack of information needed to understand or predict the future•Environmental complexity•Environmental dynamism2-123.4 External Environment and Uncertainty13Adapting to the EnvironmentBoundary Spanning – link and coordinate the organization with external environment, seek:•Business intelligence•Competitive intelligenceInterorganizational partnerships – reduce boundaries and begin collaborating with other organizationsMergers/joint ventures – legal combination of operations; legal collaboration for specific project2-143.5 The Shift to a Partnership Paradigm15The Internal Environment:Organizational Culture16Levels of Corporate Culture3.7 Four Types of Corporate Cultures18High Performance CultureBased on solid organizational mission/purposeShared adaptive values that guide decisions and practicesEncourages individual employee ownership•Bottom-line results•Organization’s