Chapter 3 Organizational Environments and Cultures I External Environments influence or affect it a Environmental Change environments change all events outside a company that have the potential to the rate at which a company s general and specific an environment in which a rate of change is iii Punctuated Equilibrium Theory i Stable Environment ii Dynamic Environment rate at which the rate of change is slow fast companies go through long simple periods of stability equilibrium followed by short periods of dynamic fundamental change revolution and ending with a return to stability new equilibrium theory according to which b Environmental Complexity environment that affect organizations the number of external factors in the i Simple Environments ii Complex Environments organizations few factors that affect an organization have many factors that affect c Resource Scarcity the abundance or shortage of critical organizational resources in an organizations external environment environmental changes and trends will affect their businesses the extent to which managers can understand or predict which d Uncertainty II General Environment trends that indirectly affect all organizations the economic technological sociocultural and political a Specific Environment regulations and advocacy groups that are unique to an industry and directly affect how a company does business the customers competitors supplier s industry b Components i Economy 1 Business Confidence Indicie level of confidence about future business growth indices that show managers ii Technological Component used to transform input into output the knowledge tools and techniques iii Political Legal Component iv Socio Culture Component III Specific Environment a Customer Component b Competitor Component i Competitive Analysis anticipating competitor s moves and determining competitor s strengths and weaknesses involves identifying competitors c Supplier Component and informational resources to other companies i Suppliers are companies that provide material human financial iii Buyer Dependence ii Supplier Dependence is the degree to which a supplier relies on a 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 of that product buyer to the suppliers sales and the difficulty of finding other buyers for its products relationship benefits at the expense of others beneficially long term relationship between buyers and sellers a transaction in which one party in the focuses on establishing a mutually v Relationship Behavior iv Opportunistic Behavior d regulation and rules that govern the businesses Industry Regulation practices and procedures of specific industries businesses and professionals are groups of concerned citizens who ban together to e Advocacy Groups try to influence the businesses practices of specific industries businesses and professionals i Public Communications Approach by the media ii Media Advocacy controversial stories to get media attention IV Making Sense of Changing Environments iii Product Boycott not using a product service relies on buying Add time or causing relies on voluntary participation a Environmental Scanning or issues that might effect an organization Internal Environments affect management employees and organizational couture b the events and trends inside an organization that searching the environment for important events i Organizational Couture members of an organization the values beliefs and attitudes shared by a businesses purpose or reason for existing V Organizational Cultures c Company Mission a Organizational Stories b Organizational Heroes i Legendary stories about the founder that motivate employees i Legendary stories that motivate employees c Companies Mission d Consistent Organizational Culture teaches organizational values beliefs and attitudes the businesses purpose or reason for existing when a company actively defines and e Changing Organizational Cultures i Behavioral Addition the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture a company wants to create the old way to behaviors that are central to the new way changing behaviors that was central to ii Behavioral Substitutions iii
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