Chapter 3 the environment of management
The task environment is made up of
1 suppliers 2customers 3 substitutes 4competitors 5potential new competitors
Organizations and engage in lobbying
AT&T, Google, Blue Cross Blue Shield, US Chamber of Commerce, Afl-cio union
The internal environment
All the factors that make up the organization such as the owners, managers, employees, and Board of Directors
Organizational environment includes
All those factors that affect the operation of the organization
Customers
Buy and organizations goods or services
Market interest
Buyers or suppliers
Socio-cultural
Changing demographics is creating an older and more culturally diverse workforce
Gathering information about stakeholders in the environment
Collecting information about stakeholders allows organizations to anticipate changing their environment and develop plans to respond to these changes
Potential new competitors
Company is not currently operating a business industry but that have a high potential for entering the industry
Technical manager's
Coordinate the various levels
Techniques organizations used to collect information include
Customer service, economic forecasting, and trend analysis
Task environment
Customers, suppliers, competitors, substitutes, potential new competitors
Examples of primary stakeholders
Customers, suppliers, employees, regulators, investors, communities.
Secondary stakeholders
Do you not have a formal connection to the firm but may affect her through public opinion
General environment
Economic technological socio-cultural political legal, global
Examples of secondary
Environmentalist, special interest groups, media
Three basic types of stakes
Equity interest, market interest, influencing interest
Change
External environment relatively stable or dynamic
Homogeneity
External environment varies from relatively simple to complex
Substitutes
Goods and services that may be used in place of those in the business
Influencing interest
Government or interest groups
Primary stakeholders
Have ongoing relationships with the organization through formal contracts, ownership, or monitoring of a legal obligation of the organization
The external environment may be thought of as differing among organizations in two dimensions
Homogeneity and change
Stakeholder map
Is a representation of the organization stakeholders and their stakes
The ability to visualize the environment through stakeholder map
Is necessary for deciding how to manage the environment properly
Corporate governance
Is the formal system of oversight accountability and control for organizational decisions and resources
Problems in receiving in using information about the external environment including
Limited capability, lack of information, superfluous information, current organizational constraints
Importance of the external environment
Managers must perceive the threats and opportunities in the external environment and react accordingly
Types of external environments
Moderately uncertain example airlines, uncertain computer software, moderately uncertain automobile manufacturers, certain cardboard box and bag manufacturers
Suppliers
Organizations and individuals that provide resources to other organizations
Techniques for interacting with the environment
Organizations interact with and manage their external environment to lessen the threats and take advantage of the opportunities
Competitors
Other organizations that produce similar or in some cases I denticle goods or services
Internal environment
Owners, managers, employees, Board of Directors
Common interaction techniques include
Public relations, boundary spanning, lobbying, negotiation, forming alliances, organizational reconstructing
The technological dimensions of the general environment
Refers to the knowledge in process of changing imports (resources labor money )to outputs (goods and services)
The global dimension of the general environment
Refers to those factors in other countries that affect the organization
Strategic or institutional managers
Set the overall direction of the organization
Equity interest
Stockholder or lender
Managers can be divided into three types
Strategic or institutional, technical, operational
Technological
Technological changes is forcing place to acquire more complex skills
The socio-cultural dimension of the general environment includes
The demographics and the values of the society within which the firm operates
General environment
The external factors that affect all organizations including economic, technological, socio-cultural, political legal, and global dimensions
The general environment refers to
The external factors that affect our organizations, including socio-cultural, political legal, technological, economic, and global dimensions
The task environment
The external factors that are specific to an organization, such as customers, suppliers, competitors, substitutes, and potential new entrance to the industry
Stakeholders
The external to the organization, constantly influence the organization
The political legal dimension refers to
The nature of the relationship between various areas of government in the organization
The economic dimension reflects
The overall condition of the complex interactions of economics throughout the world
In the intern on fire meant the smallest companies
The owner is a sole manager of the firm and for fill all typical management task
As The organization expands and becomes more complex
The owner normally brings an additional persons to act as managers
Stakeholder views of the environment concerned with
Those individuals organizations that could affect the organization
US regulatory bodies that affect American business
To name a few consumer product safety commission, environmental protection agency, department of justice, FDA, federal trade commission
Operational managers
Transform the inputs into finish outputs
Employees can be classified as
Union or nonunion
The three main components of organizational environment
The general environment, the task environment, and the internal environment
