Lecture 2 Understanding Competitive Environment and Organisational Culture Prepared by: ANS First Prepared on: 13-12-05 Last Modified on: xx-xx-xx Quality checked by: HKP Copyright 2004 Asia Pacific Institute of Information Technology Introduction to Management BM007-3-1-IMT
The major forces outside the organisation that have the potential to significantly influence the likely success of products and services.
The general condition that exit within an organisation.
Environment MEGA-ENVIRONMENT Labour Government Agencies Customers & Clients Supplier Competitors TASK ENVIRONMENT Technological Element Economic Element Legal-political Element Sociocultural Element International Element
The development of countries outside an organisation’s home country than have potential to influence the organisation.
International development can greatly affect the ability of an organisation to conduct business abroad.
E.g. NAFTA – North American Free Trade Agreement involving Canada, Mexico and US, offer big opportunities for market growth, they allow goods, services and funds to move more easily between the countries involved.
This factor is beyond the manipulation of a particular organisation.
The Internal Environment : Organisational Culture
Organisational Culture – A system of shared values assumptions, beliefs and norms that unite the members of an organisation.
“ The way things are done in an organisation”.
It is important in an organisation because as individuals act on shared values and other aspects of organisational culture, their behaviours can have significant impact on organisational effectiveness.
Cultures that develop reflect the drive and imagination of the individuals involved.
E.g. Mc Donald’s – “Quality service, cleanliness and value.
There are many classification systems, including those based on:
Types of Control
Visible Artifacts such as dress, office layout, symbols, slogans, ceremonies Invisible Expressed values such as “The Penney Idea,” “The H-P Way” Underlying assumptions and deep beliefs such as “people are lazy and can’t be trusted” Culture that can be seen at the surface level Deeper values and shared understandings held by organization members.