Assignment: Chapter 03: Understanding the Organization's Environment

Aardvark is the only commercial supplier of paper straws.

Suppliers The example emphasizes the limited the number of suppliers in the industry. The fewer supply options are available, the higher the power of the suppliers.

Corporate jet purchases are made by a small number of affluent individuals with many transportation options.

Buyers The example points to the power of buyers. Buyers have more power when they are scarce and when their purchasing power is strong.

Teledoc Health now offers 24/7 online medical appointments that are covered by insurance.

Competitors

The video game company Electronic Arts has the slogan "Challenge everything." This slogan is part of the company's

Culture Culture is the set of values, beliefs, behaviors, customs, and attitudes that define what the organization stands for, how it works, and what it values. Slogans are one way to communicate culture. The physical work environment is where people do the work of the organization.

When the scenario mentions an "overwhelming work environment," which aspect of the organization's internal environment is it referring to?

Culture Dillard's culture is based on meeting sales quotas. In fact, many salespeople discuss sales per hour, or SPH, as the primary reason to work—or not work—at Dillard's.

A new method for assembling and providing products to customers more quickly would be part of the technological dimension of the general environment.

technological dimension The technological dimension consists of methods available for converting resources into products or services. The political-legal environment consists of the government regulation of business and the relationship between businesses and the government, whereas the economic dimension relates to the overall health of the economic system in which an organization operates. The internal environment consists of the conditions and forces within an organization.

An organization's culture often begins with the company's founder

An organization's culture often times begins with the company's founder. There are many examples of founders who have set the culture for their organizations, such as Walt Disney, James Cash Penney, and Sam Walton.

The "nine senior-level Dillard's managers and one independent manager" constitute which aspect of the internal environment?

Board of directors Dillard's has more store employees on its board of directors than do many other large organizations. As members of the board, these managers are charged with making sure that the organization is being well-run for the benefit of its shareholders.

Other oil companies increasing their market share while BP focused its resources on addressing the oil spill

Competitors Companies that compete with BP for customer dollars (a resource) could take advantage of BP's reduced oil supply, as well as the negative publicity BP received.

Choosing a new CEO from outside the firm tends to signal a change in culture.

When an outsider is brought into leadership positions in an organization, the organization likely seeks change. The new leader can act as the change agent.

Who are the owners of this company? (Dillards)

Shareholders Dillard's Inc. is publicly traded on a stock exchange, so its owners are the people and institutions that own shares of its stock. CEO Bill Dillard II is in effect hired by the shareholders to manage their company for their benefit. As the son of the founder, he does in fact also own many shares of stock, and other members of the Dillard family occupy dual roles as owners and managers of the firm. In 2008, some shareholders tried to organize Bill Dillard's ouster as CEO because they felt he was not representing their interests. (Source: Friedman, M. (2008, October 27). Activist shareholders now pushing to replace Dillard. Arkansas Business. Retrieved from http://www.arkansasbusiness.com/article/41398/activist-shareholders-now-pushing-to-replace-dillard)

A manager who is considering entry to a new market must carefully consider all aspects of the environment as it relates to that market, including any obstacles posed by competitors who already have established relationships with suppliers and customers.

competitors Companies that already have or could gain access to suppliers and customers in a market are competitors. Strong competitors make entry to a market more difficult.

Top Dog Academy is a dog day care provider. Which issues are part of its general environment? Check all that apply.

PetCube is a technological innovation that provides dogs with a safe environment for play at home even when owners are away. People increasingly acknowledge the role of pets as part of the family. As consumer confidence improves, people feel they have more discretionary income. The general environment is a set of broad dimensions that are not necessarily associated with specific organizations. These are broadly classified as economic, technological, sociocultural, political-legal, and international dimensions. Consumer confidence relates to the economic dimension. How people view their pets is part of the sociocultural dimension. The invention of PetCube is part of the technological dimension. The nearby dog care providers are competitors of Top Dog Academy (but not competitors of dog care companies that are further away) and are thus part of Top Dog's task environment, not its general environment.

Increased regulation of banks and mortgage lenders regarding the loans they issue

The answer is general environment. Government regulation of lenders affects the entire banking industry, all companies that borrow money to operate, and all individuals who borrow money to make purchases. The effect on the business environment is widespread.

Shifts in economic and political power between countries

The answer is general environment. Shifts in economic power from one country to another affect entire industries, not just individual companies.

Becoming a content creator on social media platforms like TikTok requires nothing but a phone and an idea.

New Entrants This example refers to the ease with which someone can enter the social media content creator field. It indicates that new entrants are a significant feature of the business environment.

A reminder to employees that business-casual attire is permitted only on Fridays

The answer is internal environment, because the company's dress code affects how employees perform their jobs within the company.

Employees' ability to choose among several types and styles of desk chairs

The answer is internal environment, because the different seating options are part of the physical environment inside a company.

For Caterpillar, a heavy equipment manufacturer, an unanticipated jump in the price their suppliers charge for steel

The answer is task environment. Companies that produce steel are Caterpillar's suppliers, making them part of Caterpillar's task environment.

A group of managers are addressing multiculturalism when they decide to grapple with the challenges and opportunities that arise from the various differences among people in the organization's internal and external environments.

Multiculturalism refers to the myriad differences among people. These differences pose challenges, since a single approach does not work equally well for all employees, customers, and other stakeholders, but they also present opportunities for organizations that are adept in a multicultural environment. Ethnicity is one of the differences covered by the term multiculturalism. Organizational culture is the set of values and beliefs that give an organization a distinct "feel." An organization may have almost no multicultural awareness but still have a strong organizational culture.

Match each event in the following table with a specific dimension of the general environment. An established process for determining whether oil companies are responsible for oil spills and a requirement that guilty companies pay large fines Low investor confidence in oil companies after the explosion Development of new methods to measure oil pressure in deep-sea wells after existing mechanisms had failed

Political/Legal - The political-legal dimension involves the relationship between business and the government. In this case, the US government has laws against oil spills and can force companies that break the law to pay fines. Economic- Lowered investor confidence in a large segment of the energy industry is part of the economic environment. Technological - Finding new ways to monitor oil pressure in offshore drilling rigs changes the technological dimension of the general environment for energy companies.