POM test1. 2
Managers useenvironmental scanning to find trends and events that might impact their organizations.
Often told by employees,organizational stories highlight events and actions that reflect and reinforce a company's culture.
PETA (People for the Ethical Treatment of Animals) is a strongadvocacy group that dramatically reduced the use of animal testing in the cosmetics industry.
Advocacy groups such as the Catalyst Foundation worked with the Cable News Network (CNN) to produce a special report called "The Freedom Project." Usingmedia advocacy , they helped to educate the public about human trafficking and the use of underage and slave labor in the production of chocolate and electronics.
A company'ssuppliers provide the resources the company needs to produce its products or services.
Companies with highsupplier dependence rely on a very small number of people or companies to supply them with resources.
The rate ofenvironmental change influences the speed at which companies and industries evolve.
High-tech companies often operate in adynamic environment , forcing them to change their business practices and products rapidly in order to remain competitive.
A company is operating in acomplex environment when its business is affected by a large number of environmental factors.
Managers operate under conditions of highuncertainty when environments are complex and resources are scarce.
The diagram outlines the components of an organization's environment. The general environment consists of very broad factors and trends—think of things that might have an impact on an entire country and all of the businesses that operate within it. These trends affect organizations indirectly, often through their impact on a company or industry's specific environment. For example, changing sociocultural trends may spark the creation of advocacy groups that lobby for organizational change. The specific environment has a more direct influence on the organization. For example, if suppliers increase their prices, the organization will have to change either the way it makes products (the transformation process) or the products themselves (outputs) in order to continue to make a profit. A company's internal environment consists of the employees and managers who make up the company itself, plus the company's culture, which is based on the company's key underlying values and assumptions. These values and assumptions are expressed in what people say and do and even in the clothes they wear and how their work spaces are arranged. Change in any subsystem of these environments can lead to changes in every other subsystem, so it is especially important for managers to monitor environments and try to predict upcoming changes before they occur
One employee saying to another, "It's just the way we do things around here—it's our organizational culture." Internal environment A worldwide recession General environment
A company with aconsistent organizational culture actively defines and teaches organizational values, beliefs, and attitudes.
One tactic for changing an organization's culture,behavioral substitution requires managers and employees to replace old behaviors with new behaviors.
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.
Comprised of economic, technological, sociocultural, and political factors, thegeneral environment influences all companies, regardless of industry.
When trying to make economic predictions, managers often rely onbusiness confidence indices rather than economic statistics such as gross domestic product (GDP) and personal income (PI).
