Changing Environments - General Environment - Specific Environment - Making Sense of Changing Environments - Organizational Cultures
organizational culture
the values, beliefs, and attitudes shared by organizational members
visible artifacts
visible signs of an organization's culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room
_______ involves identifying and addressing client trends and problems after they occur.
Reactive customer monitoring
Heidi says that Camp Bow Wow needs to have "a very strong culture." A strong organizational culture is made up of different components, both visible and invisible. When analyzing the fit between an organization's culture and the environment, it is important to consider all the components of that culture. Which of the following would express Camp Bow Wow's culture in a ceremony?
Sending a condolence card signed by all the employees of Sue's franchise to any customer whose dog dies
environmental complexity
the number and the intensity of external factors in the environment that affect organizations
behavioral substitution
the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture
environmental change
the rate at which a company's general and specific environments change
punctuated equilibrium theory
the theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium
Identify a true statement about opportunistic behavior.
A high degree of seller dependence can lead to opportunistic behavior.
competitive analysis
a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
internal environment
the events and trends inside an organization that affect management, employees, and organizational culture
technology
the knowledge, tools, and techniques used to transform inputs into outputs
cognitive maps
graphic depictions of how managers believe environmental factors relate to possible organizational actions
In a _______, consumers have relatively more money to spend.
growing economy
stable environment
an environment in which the rate of change is slow
simple environment
an environment with few environmental factors
simple environments
an environment with few environmental factors
complex environment
an environment with many environmental factors
complex environments
an environment with many environmental factors
organizational ceremonies
gatherings in which symbolic acts commemorate or celebrate notable achievements or changes
Identify a way in which a company's organizational culture can be sustained.
By recognizing and celebrating heroes
Walmart—the largest retailer in the world—is well-known for its everyday low prices. The store carries a Vlasic's gallon jar of pickles for just $2.97. When Vlasic approached Walmart to raise the price of the jar to help Vlasic on its profits, Walmart refused and threatened that another manufacturer could easily take their place. This is an example of:
OPPORTUNISTIC BEHAVIOR
Which of these is a story that would convey Camp Bow Wow's culture?
One day, a dog owner was in a car accident and couldn't pick up her dog, so Sue Ryan took that dog home with her overnight to take care of it.
consistent organizational culture
a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes
consistent organizational cultures
a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes
product boycott
an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service
public communications
an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out
dynamic environment
an environment in which the rate of change is fast
dynamic environments
an environment in which the rate of change is fast
Your manager has a bigger office than you do to show that your company values rank and position within the organization.
artifact
In the video, Heidi Genahl says, "You have to have a very strong culture... one that doesn't allow for people to color outside of the lines, but yet taps into their creativity and innovation." A strong, unchanging culture makes it____ for Camp Bow Wow to deal with the changes in a turbulent environment, such as the changes they faced with the COVID-19 pandemic.
difficult
Environmental uncertainty in an organization is highest when:
environmental complexity is high.
uncertainty
extent to which managers can understand or predict which environmental changes and trends will affect their businesses
Changes in the technological environment are always an advantage for organizations.
false
business confidence indices
indices that show managers' level of confidence about future business growth
Customers tell Heidi that they would feel more comfortable leaving their dogs at Camp Bow Wow if at least some of the camp counselors were accredited veterinary technicians. Check all that apply.
internal environment, employees
organizational heros
people celebrated for their qualities and achievements within an organization
Despite the fact that he is now retired, Costco employees still talk about how Jim Sinegal lives his principles of corporate responsibility. Not only did he spearhead Costco's purchase of Rwandan coffee, he is now sponsoring a school where Rwandan women can learn how to run their own businesses.
hero
Heidi talks in the video about her determination to protect the brand and ensure the safety of the animals in Camp Bow Wow's care, and at the same time, the business has grown from her original $80,000 investment to many franchises. You would advise Heidi that her company is characterized by .
high cultural values and high performance
company mission
a company's purpose or reason for existing
Due to an upwelling of public fear, cities across the country pass laws imposing taxes on and implementing inspections of any business that allows certain dog breeds, like Rottweilers and pit bulls, on its premises. Check all that apply.
political-legal, general environment
environmental scanning
searching the environment for important events or issues that might affect an organization
Which of the following refers to an organization's ability to notice and respond to changes in the organization's environment?
Adaptability
Which of these is a symbolic artifact of Camp Bow Wow's culture?
All employees wear red shirts with the Camp Bow Wow logo.
Apple pays close attention to the design of the new Samsung Galaxy phone. After thinking the designs were too similar, Apple filed a lawsuit for copyright infringement against Samsung. Samsung impacts the component of Apple's specific environment.
COMPETITOR
In addition to its famous soft drink, PepsiCo also owns Frito-Lay, Quaker, Tropicana, and Gatorade brands. The company owns 22 global brands which each generate over $1 billion in annual revenue. In the early 2000s, PepsiCo recognized that consumers were interested in healthier drink and snack options. As a result PepsiCo has set targets for reduced sugar, sodium, and fat in their food and beverage products. They have also introduced healthier food items including Quaker Real Medleys portable oatmeal with real fruit and nuts and SmartFood Delight a reduced-fat popcorn. In addition to changes to their current products, PepsiCo acquired healthier snack and beverage brands, including Stacy's Pita Chip Co., Naked Juice, and KeVita. In addition to diversifying their product line, PepsiCo CEO, Indra Nooyi, has increased spending in Research & Development. The company is researching ancient grains, berries, and plants, and hired a former Mayo Clinic endocrinologist to advise PepsiCo on the impact of sugar, salt, and fat on consumers. PepsiCo was able to recognize consumers' desire for healthier food options through:
ENVIRONMENTAL SCANNING
The New York State Department of Financial Services (DFS) requires that banks and insurance companies have a cybersecurity program that will protect consumers' private data. For these banks and insurance companies, this impacts the component of their specific environment.
INDUSTRY REGULATION
Culture can be defined as
a set of key values, beliefs, and attitudes
opportunistic behavior
a transaction in which one party in the relationship benefits at the expense of the other
external environment
all events outside a company that have the potential to influence or affect it
media advocacy
an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage
competitors
companies in the same industry that sell similar products or services to customers
suppliers
companies that provide material, human, financial, and informational resources to other companies
_______ is a business's purpose or reason for existing.
company mission
Heidi tells you that she wants to systematically analyze how the culture of Camp Bow Wow relates to its environment. Read about the following event and tell her what aspects of the company's environment it directly involves. A national pet supply retailer adds dog day care services to a dozen of its stores in large cities. Check all that apply.
competitors, specific environment
advocacy groups
concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
After scanning the environment, PepsiCo discovered consumers' desire for healthier food options. The company then thought about how this environmental factor related to the possible actions the company could take. Managers at PepsiCo likely depicted these relationships by:
creating a cognitive map
In the context of organizational environments, the sociocultural component of the general environment consists of:
demographic characteristics of the people.
_______ refers to the number and the intensity of external factors in the environment that affect organizations.
environmental complexity
The _______ component of the general environment includes the legislation, regulations, and court decisions that govern and regulate business behavior.
political/legal
resource scarcity
the abundance or shortage of critical organizational resources in an organization's external environment
specific environment
the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business
supplier dependence
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
industry regulation
regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
Environmental scanning involves:
searching the surroundings for important events or issues that might affect an organization.
organizational stories
stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
At a local university, students talk about being able to retake an exam three times as a way of showing how committed the school is to helping them learn.
story
After scanning the environment, Indra Nooyi wanted to use a cognitive map to help her summarize the relationships between the environmental factors and possible actions for PepsiCo. Which of the following would Indra list as *potential strategies* on a cognitive map? Check all that apply.
-Acquire healthy snack food brands -Reduce the amount of sodium in Frito-Lay brand chips and snacks
Which of the following would help Camp Bow Wow to adapt in this crisis situation? Check all that apply.
-Heidi giving franchise owners information on how to handle social distancing protocols based on the best practices of other organizations -Heidi altering the strategy of the company to focus on using digital processes to provide dog care and prevent COVID-19 infections
In April 2010, the explosion of British Petroleum's (BP) Deepwater Horizon oil drilling rig and the accompanying oil spill dramatically changed the external environment in which all oil companies operate. The explosion released more oil than any other accidental spill in history and had a huge impact on the waters and surrounding communities of the Gulf Coast. The conditions that led to the spill, the attempts to stop the spill, and the cleanup and aftermath of the spill prompted debates in the U.S. Senate, concern on Wall Street, and attention from companies all over the world.
-President Barack Obama placing a six-month moratorium on offshore drilling *LEGAL POLITICAL* -People moving from Louisiana to Oklahoma to avoid the effects of the spill *SOCIOCULTURAL* -Using deep-sea submersibles to take pictures of the oil leak a mile below the surface of the water *TECHNICAL*
After scanning the environment, Indra Nooyi wanted to use a cognitive map to help her summarize the relationships between the environmental factors and possible actions for PepsiCo. Which of the following would Indra list as weaknesses on a cognitive map? Check all that apply.
-Sugar content in Pepsi Cola is too high -PepsiCo lacks healthy food options
EA Sports, which manufactures a large number of sports video games, frequently changes its products to stay abreast of new trends in both sports and gaming. New technology is constantly appearing, and new competitors emerge on a regular basis. Located in the heart of California's Silicon Valley, EA Sports must compete aggressively to hire engineers and game designers.
At EA Sports, the environment is DYNAMIC because of the PACE OF CHANGE and COMPLEX because of the NUMBER OF FACTORS THAT ARE CHANGING. Resources are SCARCE. The managers at EA Sports are facing conditions of HIGH uncertainty. This means that it will be DIFFICULT for them to make strategic decisions about the types of products the company will offer in the future.
Celgene Corporation, a biopharmaceutical company based in New Jersey, develops cutting-edge drugs in a highly regulated environment. Areas such as informatics and functional genomics evolve on a daily basis, as do the regulations that control the pharmaceutical industry. The stem cell lines Celgene needs for research are very expensive and can be hard to acquire.
At Celgene, the environment is DYNAMIC because of the PACE OF CHANGE and COMPLEX because of the NUMBER OF FACTORS THAT ARE CHANGING. Resources are SCARCE . The managers at Celgene are facing conditions of HIGH uncertainty. This means that it will be DIFFICULT for them to make strategic decisions about the types of products the company will offer in the future.
Which of the following franchise owners would be successful in this type of culture at Camp Bow Wow?
James: hires employees who have a passion for animals; makes work environment fun and inviting; promotes employees based on specific criteria; pays close attention to budget and financial performance
Which of the following is an example of the surface level of an organizational's culture?
Managers' behaviors
buyer dependence
the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products
general environment
the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations
relationship behavior
the establishment of mutually beneficial, long-term exchanges between buyers and suppliers
behavioral adddition
the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create
