Chapter 2

What do stakeholders expect under performance-expectation gap?

Stakeholder expectation are a mixture of peoples opinions, attitudes, and beliefs about what constitutes reasonable business behavior.

What is a public issue?

A public issue is an issue that is of mutual concern to an organization and one or more of the organization stakeholders.

Geophysical Environment

Awareness of physical surroundings of the organization facilities and operations, whether it is the organization headquarters or its field offices and distribution centers etc etc.

What is Reactive?

Companies act only when forced to do so, and then in a defensive manner

What is Interactive?

Companies actively engage stakeholders in an ongoing relationship of mutual respect, openness, and trust.

What is Inactive?

Companies ignore stakeholders concern

What is Proactive?

Companies try to anticipate stakeholders concern

According to Karl Albrecht, in order to gather Environmental Intelligence you have to focus on eight strategic radar screens.

Customer, Competitor, Economic, Technological, Social, Political, Legal and Geophysical Environment

What is Stakeholder Engagement ?

Stakeholder Engagement is the process in which we refer the process of ongoing relationship building between a business and its stakeholders.

What does environmental analysis mean?

Environmental Analysis is a method managers use to gather information about external issues and trends, so they can develop an organizational strategy that minimize threats and takes advantage of new opportunities. Environmental in this class means outside the organization

What does environmental intelligence mean?

Environmental Intelligence is the acquisition of information gained from analyzing the multiple environments affecting organizations.

Five Steps needed for Issue management process?

Identify the issue, Analyze issue, Generate options, Take action, Evaluate results

If you get correct EI what can happen?

If you do this correctly you can help an organization avoid crises and spot opportunities.

business - stakeholder relationship comes through 4 different stages?

Inactive, Reactive, Proactive, Interactive.

Social Environment

Includes cultural patterns, values, beliefs, trends, and conflicts among the people in societies where the organization conducts business or might conduct business

Technological Environment

Includes development of new technologies and their applications affecting the organization, its customers, and other stakeholder groups.

Legal Environment

Includes patents, copyright, trademarks, and considerations of intellectual property

Political Environment

Includes the structure, processes, and actions of all levels of government - local, state, national, and international.

Economic Environment

Information such as cost, prices, international trade, and any other features of the economic environment

Managers and organizations should identify expectations under the performance and expectation gap because?

Managers and organization should identify expectations as soon as they hear about it. Its very important to understand stakeholders concerns and to respond appropriately or else the performance expectation gap will grow.

What are other names for public issues?

Public issues are often times called social issues or sociopolitical issues

Public issue and the gap between performance and expectation?

Stakeholders expect a level of performance by business, and if it is not met a gap between performance and expectation emerges. The larger the gap, the greater the risk of stakeholder backlash or missed business opportunity.

What does performance-expectation gap mean?

The gap between what the firm wants to do or is doing and what stakeholders expect is called performance - expectation gap.

Customer Environment

This includes, customers age, social values, gender, buying preferences, technology usage

Competitor Environment

This information includes information on the number and strength of the organizations competitors, whether they are potential or actual allies, patterns of aggressive growth versus static maintenance of market share.

What is issue management process?

This is the process after a company has identified a public issue and detects a gap between society's expectations and its own practices. Its good to know that good companies don't wait for public issues to happen to engage in issue management process

How can you get information under Environmental Intelligence?

You can get this information by informally or formally as management process.