Chapter 2

ceremonies

Managers hold ceremonies, planned activities at special events, to reinforce company values.

competitors

Organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as competitors.

environmental uncertainty

Uncertainty means that managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes.

hero

a figure who exemplifies the deeds, character, and attributes of a strong culture. Heroes are role models for employees to follow.

cultural leader

defines and uses signals and symbols to influence corporate culture.

technological dimension

of the general environment includes scientific and technological advancements in a specific industry, as well as in society at large.

consistency culture

uses an internal focus and a consistency orientation for a stable environment. Following the rules and being thrifty are valued, and the culture supports and rewards a methodical, rational, orderly way of doing things.

competitive intelligence

Activities designed to get as much information as possible about one's rivals.

greenfield venture

The most risky type of direct investment is the greenfield venture, in which a company builds a subsidiary from scratch in a foreign country.

customers

Those people and organizations in the environment that acquire goods or services from the organization.

adaptability culture

emerges in an environment that requires fast response and high-risk decision making. Managers encourage values that support the company's ability to rapidly detect, interpret, and translate signals from the environment into new behaviors.

involvement culture

emphasizes an internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment. This culture places high value on meeting the needs of employees, and the organization may be characterized by a caring, family-like atmosphere.

strategic issues

events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives.?

organizational environment

includes all elements existing outside the boundary of the organization that have the potential to affect the organization.

natural dimension

includes all elements that occur naturally on Earth, including plants, animals, rocks, and resources such as air, water, and climate.

legal-political dimension

includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior.

organizational ecosystem

includes organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, and linkages necessary for an organization to thrive.

internal environment

includes the elements within the organization's boundaries. The internal environment is composed of current employees, management, and especially corporate culture, which defines employee behavior in the internal environment and how well the organization will adapt to the external environment.

story

is a narrative based on true events and is repeated frequently and shared among organizational employees.

slogan

is a phrase or sentence that succinctly expresses a key corporate value. Many companies use a slogan or saying to convey special meaning to employees.

symbol

is an object, act, or event that conveys meaning to others.

task environment

is closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. It is generally considered to include competitors, suppliers, customers, and the labor market.

culture

is the set of key values, beliefs, understandings, and norms shared by members of an organization.

boundary-spanning roles

link to and coordinate the organization with key elements in the external environment. Boundary spanners serve two purposes for the organization: They detect and process information about changes in the environment, and they represent the organization's interests to the environment.

merger

occurs when two or more organizations combine to become one.

international dimension

of the external environment includes events originating in foreign countries, as well as new opportunities for U.S. companies in other countries.

sociocultural dimension

of the general environment represents the demographic characteristics as well as the norms, customs, and values of the general population. Important sociocultural characteristics are geographical distribution and population density, age, and education levels.

suppliers

provide the raw materials that the organization uses to produce its output.

interorganizational partnerships

reduce boundaries and increase collaboration with other organizations.

labor market

represents people in the environment who can be hired to work for the organization.

economic dimension

represents the general economic health of the country or region in which the organization operates. Consumer purchasing power, the unemployment rate, and interest rates are part of an organization's economic environment.

business intelligence

results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant.

achievement culture

suited to organizations concerned with serving specific customers in the external environment, but without the intense need for flexibility and rapid change. This results-oriented culture values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results.

general environment

affects organizations indirectly. It includes social, economic, legal-political, international, natural, and technological factors that influence all organizations about equally.