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