Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
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Learning Objectives
Describe how environmental forces influence organizations
and how organizations can influence these environments
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Learning Objectives
Summarize how organizations respond to environmental
uncertainty
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The External Environment
The external environment refers to all relevant forces outside a firms
boundaries such as competitors, customers, the government, and the
economy
Open systems Organizations that are affected by, and that affect, their
environment
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The External Environment
The competitive environment and the macroenvironment are components
of the external environment
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Laws and Regulations
Regulators include agencies such as
Department of Trade and Industry (DTI)
Department of Finance (DOF)
Department of Labor and Employment (DOLE)
Board of Investments (BI)
Bureau of Internal Revenue (BIR)
Philippine Chambers of Commerce
National Labor Relations Commission (NLRC)
and many others
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The Economy
Complex interconnections among economies
of different countries
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Technology
Strategies developed around new
technologies can create a competitive
advantage
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Demographics
Measures of characteristics of the people who
make up groups or other social units
Demographic trends
Growth of the labor force
Increasing education and skill levels
Immigration
Increased numbers of women in the workforce
Increasingly diverse workforce
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Social Issues and the Natural
Environment
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The Competitive Environment
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The Competitive Environment
Competitors
New Entrants
Substitutes/ Complements
Suppliers
Customers
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Competitors
Who is the competition?
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New Entrants
New entrants compete with established
companies
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Customers
Customers purchase the goods or services and
organization offers.
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Environmental Analysis
Information not always easily available
When the environment is relatively unpredictable, managers
face environmental uncertainty
Uncertainty arises from complexity and dynamism
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Environmental Uncertainty
Environmental complexity
The number of issues to which a manager must
attend as well as the interconnectedness of these
issues
Environmental dynamism
The degree of discontinuous change that occurs
within an industry
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Environmental Scanning
Environmental scanning means searching for
and sorting through information about the
environment
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Competitive Intelligence
Managers can begin developing competitive
intelligence by asking five questions
1) Who are our current competitors?
2) Are there few or many entry barriers to our industry?
3) What substitutes exist for our product or service?
4) Is the company too dependent on powerful suppliers?
5) Is the company too dependent on powerful customers?
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Scenario Development
Scenarios
Narratives that describe a particular set of future
outcomes
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Forecasting
Forecasting is used to predict exactly how
some variable or variables will change in the
future
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Using Forecasting
Use multiple forecasts and perhaps average their
predictions
Remember that accuracy decreases the further into the
future you area trying to predict
Forecasts are no better than the data used to construct
them
Use simple forecasts (rather than complicated ones) where
possible
Keep in mind that the important events often are surprises
and represent a departure from predictions
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Benchmarking
Benchmarking
The process of comparing an organizations
practices and technologies with those of other
companies
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Responding to the Environment
Three categories of options in responding to
the environment
Adapting to the environment
Influencing the environment
Selecting a new environment
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Responding to Environmental
Uncertainty
When uncertainty arises from environmental
complexity, organizations tend to adapt by
decentralizing decision making
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Responding to Environmental
Dynamism
Change from bureaucratic to organic
organizational structures
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Adapting at the Boundaries
Buffering creates supplies of excess resources
to meet unpredictable needs
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Adapting at the Core
Flexible processes allow for adaptation in
organizations technical core
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Independent Action
Independent strategies
Strategies that an organization acting on its own
uses to change some aspect of its current
environment
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Cooperative Action
Cooperative action is opposite independent
action.
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Changing the Environment You are In
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Changing the Environment You are In
Strategic maneuvering
An organizations conscious efforts to change the
boundaries of its task environment.
Domain selection
Entrance to a new market or industry with an existing
expertise
Diversification
Occurs when a firm invests in a different product,
business, or geographic area
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Changing the Environment You are In
Mergers
One or more companies combine with another
Acquisitions
One firm buys another
Divestiture
A firm sells one or more businesses
Prospectors
Continuously change the boundaries or their task environment by
seeking new products and markets, diversifying and merging, or
acquiring new enterprises
Defenders
Stay within a stable product domain as a strategic maneuver
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Culture and the Internal Environment
of the Organization
Organizational culture
The set of important assumptions about the organization and its
goals and practices that members of the company share
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Managing Culture
Top managers should espouse lofty ideas
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Diagnosing Culture
Corporate mission statements and official
goals
Business practices
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Types of Culture
Culture Definition
Clan Family-like, focus on mentoring, nurturing and doing
things together