Chapter 2: The Environment and Corporate Culture

consistency culture

values and rewards a methodical, rational, orderly way of doing things.

joint venture

a strategic alliance or program by two or more organizations.

adaptability culture

characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses.

strategic issues

events and forces that alter an organization's ability to achieve its goals. As environmental turbulence increases, strategic issues emerge more frequently.

A merger

occurs when two or more organizations combine to become one.

economic dimension

part of the general environment that represents the general economic health of the country or region in which the organization operates.

internal environment

part of the organization that includes elements within the organization's boundaries, such as employees, management, and corporate culture.

task environment

part of the organization that includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance. Generally includes competitors, suppliers, customers, and the labor market.

ceremonies

planned activities at special events, to reinforce company values.

labor market

the part of the task environment that represents the people available for hire by the organization.

symbol

an object, act, or event that conveys meaning to organizational employees

customers

are part of the task environment and include people and organizations that acquire goods or services from the organization.

technological dimension

part of the general environment that includes scientific and technological advances in society.

boundary-spanning roles

serve two purposes for the organization by detecting and processing information about changes in the environment, and representing the organization's interests to the environment.

International Environment

Elements within the organization boundaries

General Environment: International

New competitors, customers, suppliers • Changes in social, technological and economic trends • All organizations must compete and think globally

High-performance culture

a culture that is based on a solid organizational mission or purpose; embodies shared adaptive values that guide decisions and business practices; encourages individual employee ownership of both bottom-line results and the organization's cultural backbone.

involvement culture

a culture that places high value on meeting the needs of employees and values cooperation and equality.

hero

a figure who exemplifies the deeds, character, and attributes of a strong culture. (Steve Jobs - Apple)

story

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

slogan

a phrase such as Disney's "the happiest place on earth," succinctly expresses a key corporate value.

achievement culture

a results-oriented culture that values competitiveness, personal initiative, and achievement.

competitors

are part of the task environment and include organizations within the same industry or type of business that vie for the same set of customers

suppliers

are part of the task environment and provide the raw materials the organization uses to produce output.

organizational environment

consisting of both general and task environments, includes all elements existing outside the boundary of the organization that have potential to affect the organization.

cultural leaders

define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions.

organizational ecosystem

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

natural dimension

part of the general environment that includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

sociocultural dimension

part of the general environment that includes demographic characteristics, norms, customs, and values of a population within which the organization operates.

legal-political dimension

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

general environment

part of the organization that indirectly influences all organizations within an industry and includes six dimensions: Technological, Natural, Sociocultural, Economic, Legal/Political, International

interorganizational partnerships

reduce boundaries and increase collaboration with other organizations.

culture

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