The nature of an environment
> External environment: Outside the boundaries of the organization
> Internal environment: Within organization
> General environment: The broader conditions that an organization exists within
> Specific or task environment: The people and groups an organization interacts with on a day to day basis.
General environment
- Economic conditions: The broader heath of the economy
- Sociocultural: The customs, social values, educational trends and demographics of society
- Legal-political: The state of government policies and philosophy
- Technological: The development and availability of current technology
- Natural environment: The state of the environment including public concern for it
- International: International events and conditions
Specific environment
- Customers
- Suppliers
- Competitors
- Regulators
Example: Ford motor company
Managing the external environment
Adapting
- Boundary spanning
- Forecasting and scenario planning
- Flexible structure
- Mergers and joint ventures
Influcening
- Advertising and PR
- Political lobbying
- Competitive strategy
internernal environment
- Observable culture: The physical culture demonstrated in the company
- Core culture: The “deep down” values and culture that underpins the observable culture
Managing culture
- Leaders should establish and maintain core values
- Symbolic leaders should be used to reinforce desired culture
- Leaders can influence culture by
o Paying attention and noticing
o The way they react to problems
o Role modeling
o Criteria for reward, promotion & punishmentSimilar posts: