Professional Documents
Culture Documents
UNDERSTANDING
INTERNAL & EXTERNAL
ENVIRONMENTS
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
31
LECTURE OUTLINE
External environment
Types of external environment
Analysing the environment
Managing the environment
32
LECTURE OUTLINE
Internal environment (culture)
Nature of organisational culture
Manifestations of culture
Promoting innovation
Changing organisational culture
Leadership & cultural change
33
EXTERNAL ENVIRONMENT
Major forces outside the
organisation with potential to
influence significantly the
likely success of a product or
service.
34
EXTERNAL ENVIRONMENT
External environment is made up of:
The mega-environment
The broad conditions and trends in societies in
which an organisation operates.
35
THE MEGA-ENVIRONMENT
Technological
element
Economic
element
The
organisation
International
element
Legal-political
element
Sociocultural
element
36
THE MEGA-ENVIRONMENT
Five major elements:
Technological element
Current state of knowledge regarding production
of products & services
Economic element
Systems of producing, distributing & consuming
wealth
Legal-political element
Legal & governmental systems within which an
organisation must function
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
37
THE MEGA-ENVIRONMENT
Sociocultural element
Attitudes, values, norms, beliefs, behaviours &
associated demographic trends characteristic of a
given geographic area
International element
Developments in countries outside of an
organisations home country with potential to
influence the organisation
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EXTERNAL ENVIRONMENT
WARREN FEATHERBONE COMPANY
Over a century the company built a thriving
business around a patented product, the
featherbone used to stiffen corsets and collars.
Though the company survived the Great
Depression, technological changes such as plastic
were emerging.
By 1938 the company started making plastic baby
pants to cover nappies, just as featherbone
demand fell.
As the companys history shows, an organisations
environment is crucial and organisations must be
ready to change and innovate.
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
39
THE
ORGANISATION
The
employment
market Public pressure
Customers/
clients
Suppliers
groups
310
Competitors
Other organisations offering (or with a high potential
to offer) rival products/services
Suppliers
Organisations and individuals supplying resources
an organisation needs to conduct its operations
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
311
Government agencies
Agencies providing services and monitoring
compliance with laws and regulations at local,
state or regional and national levels
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313
314
315
Complexity
Number of elements in an organisations
environment and their degree of similarity
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
316
Bounty
Extent to which the environment can support
sustained growth and stability
317
Favourability influence
Involves trying to alter environmental elements to
make them more compatible with the organisations
needs
Domain shifting
Changing product/service mix to create favourable
interface
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
318
ADAPTATION
Buffering
Stockpiling either inputs into, or outputs from, a production
or service process to cope with environmental fluctuations
Smoothing
Taking actions aimed at reducing the impact of fluctuations,
given the market
Forecasting
Predicting changing conditions & future events that
significantly affect an organisations business
Rationing
Providing limited access to a product or service in high
demand
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
319
FAVOURABILITY INFLUENCE
320
DOMAIN SHIFTS
Move out of a current product,
diversification or expansion of
products/services offered
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
321
INTERNAL ENVIRONMENT
Nature of organisational culture:
A system of shared values, assumptions, beliefs
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MANIFESTATIONS OF CULTURE
Symbols
Objects, acts, events or qualities serving as a vehicle for
conveying meaning
Stories
Narratives based on true events, which may be embellished
to highlight intended value
Rites
Relatively elaborate, dramatic, planned sets of activities
intended to convey cultural values to participants and,
usually, an audience
Ceremonials
Systems of rites performed in conjunction with a single
occasion or event
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
323
PROMOTING INNOVATION
Strategic
Focused on identifying opportunities
Commitment of resources
Many stages with risk assessed for each stage
Control of resources
Rental or outsourcing of resources for flexibility
Management structure
Few levels, with informal communication
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
324
CHANGING ORGANISATIONAL
CULTURE
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LEADERSHIP &
CHANGE
CULTURAL
Crisis identification
Communication of a new vision
Motivation of key staff
to lead cultural change by implementing
the new vision and its corresponding
strategy
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
326
LECTURE SUMMARY
External environment:
Types of external environment
Mega-environment; task environment
327
LECTURE SUMMARY
Internal environment (culture):
Nature of organisational culture
System of shared values, assumption, beliefs and
norms uniting organisational members
Manifestations of culture
Symbols, stories, rites and ceremonials
Promoting innovation
Requires strategically oriented organisations with
ability to change quickly
Copyright 2005 McGraw-Hill Australia Pty Ltd
PPTs t/a Management: A Pacific Rim Focus 4e by Bartol, Tein, Matthews, Martin
328
LECTURE SUMMARY
Internal environment (culture):
Changing organisational culture
Difficult because of need to change values &
behaviour
329