1. The Manager’s Environment
MultiMedia by 2002 South-

2. Environmental Scanning
The process of collecting information about
The process of collecting information about
the external environment.
the external environment.
Identifies and analyzes trends.
Identifies and analyzes trends.
Allows managers to determine best response to
Allows managers to determine best response to
an environmental change.
an environmental change.
Identifies signals of change.
Identifies signals of change.
MultiMedia by 2002 South-

3. The Organization as an Open System
External Environment
Indirectly Interactive Forces
Economic Legal/Political Sociocultural
Technological Natural
MultiMedia by 2002 South-

4. The Organization as an Open System
External Environment
Indirectly Interactive Forces
Economic Legal/Political Sociocultural
Technological Natural
Directly Interactive Forces
Owners Suppliers/Partners Competitors
Customers Labor Force
MultiMedia by 2002 South-

5. External Environment
Indirectly Interactive Forces
Economic Legal/Political Sociocultural
Technological Natural
Directly Interactive Forces
Owners Suppliers/Partners Competitors
Customers Labor Force
Inputs
People
Information
Facilities
Infrastructure
Equipment
Machinery
Materials
Supplies
Finances
Internal Environment
MultiMedia by 2002 South-

6. External Environment
Indirectly Interactive Forces
Economic Legal/Political Sociocultural
Technological Natural
Directly Interactive Forces
Owners Suppliers/Partners Competitors
Customers Labor Force
Inputs Processing
People Transformation
Information
through
Facilities
applications of
Infrastructure
workforce
Equipment
expertise and
Machinery
technology
Materials
Supplies
Finances Feedback
Internal Environment
MultiMedia by 2002 South-

7. External Environment
Indirectly Interactive Forces
Economic Legal/Political Sociocultural
Technological Natural
Directly Interactive Forces
Owners Suppliers/Partners Competitors
Customers Labor Force
Inputs Processing Outputs
People Transformation Products
Information Services
through
Facilities Profits or Losses
applications of
Infrastructure
workforce Customer
Equipment Satisfaction
expertise and
Machinery
technology Ethical Behavior
Materials
Supplies Socially
Responsible
Finances Feedback Behavior
Internal Environment
MultiMedia by 2002 South-

8. Company’s Mission
 Primary reason for existence.
 Is the “touchstone.”
 Should include whom it serves, how, and why.
 Most effective are easily recalled.
 Provide direction and motivation for the organization.
MultiMedia by 2002 South-

9. Company’s Vision
•• What it wants to evolve into over time.
What it wants to evolve into over time.
•• Made real by engaging the minds, as well as the
Made real by engaging the minds, as well as the
hearts, of others.
hearts, of others.
Company’s Core Values
•• The fundamental principles it will not compromise.
The fundamental principles it will not compromise.
•• Serves as a baseline for actions and decision making.
Serves as a baseline for actions and decision making.
•• Guides employees in the organization’s intentions
Guides employees in the organization’s intentions
and interests.
and interests.
MultiMedia by 2002 South-

10. Intellectual Capital
Wisdom
Knowledge It’s collective experiences
Expertise
MultiMedia by 2002 South-

11. Organizational Culture
 Shared values
 Shared values
 Beliefs
 Beliefs
 Philosophies
 Philosophies
 Experiences
 Experiences
 Customs
 Customs
 Norms of behavior
 Norms of behavior
MultiMedia by 2002 South-

12. Leadership
 Means influencing others.
 Means influencing others.
 Leaders should encourage and enable followers.
 Leaders should encourage and enable followers.
 Is influenced by elements both inside and outside an
 Is influenced by elements both inside and outside an
individual.
individual.
 Involves setting an example.
 Involves setting an example.
 Leaders must “walk like they talk.”
 Leaders must “walk like they talk.”
 Creates a generative shared vision.
 Creates a generative shared vision.
 Provides the catalyst for perpetual learning.
 Provides the catalyst for perpetual learning.
MultiMedia by 2002 South-

13. Organizations
 Not defined or limited by horizontal,
vertical, or external boundaries.
Boundaryless
Organizations  Share many of the characteristics of flat
organizations.
 Strong emphasis on teams.
MultiMedia by 2002 South-

14. Learning Organization
1 Able to adapt and respond to change.
2 Skilled at creating, acquiring, and transferring
knowledge.
3 Modifying its behavior to reflect new knowledge
and insights.
MultiMedia by 2002 South-

15. Managers Facilitate Learning by
Sharing
Sustaining a
sense of Aligning the
community organization
Developing
strong culture
MultiMedia by 2002 South-

16. First, companies
increased their use of
outsourcing.
Fourth, companies are Trends in Second, companies
more willing to procure develop close alliances
needed supplies from Supplier
with outside suppliers.
anywhere in the world. Practices
Third, “deep” alliances
with fewer, more
dependable suppliers.
MultiMedia by 2002 South-

17. Businesses Compete on
the Basis of
• Price
• Quality
• Selection
• Product features and
performance
• Customer services
MultiMedia by 2002 South-

18. Major Indirect Interactive Forces
 Economic Forces-levels of taxes, wages, prices,
interest rates, personal spending and saving, business
spending and profits, inflation, and the state of the
entire economy.
 Legal/Political Forces-statutes enacted by
legislatures, court decisions, regulations and rulings,
local regulatory agencies, and agreements between
and among governments.
MultiMedia by 2002 South-

19. Major Indirect Interactive Forces (cont’d)
 Sociocultural Forces-influences and contributions
from diverse groups outside an organization.
 Technological Forces-processes, materials,
knowledge, and other discoveries resulting from
research and development activities.
 Natural Forces-climate, weather, geography, and
geology.
MultiMedia by 2002 South-

20. Challenges
Challenges Risks
Risks
Environmental
Forces
Create:
Opportunities
Opportunities Changes
Changes
MultiMedia by 2002 South-

21. Boundary Spanning
Requires current information about what is
happening or likely to happen.
Look for developments that can influence plans,
forecasts, decisions, and organizations.
Keep up to date and establish networks.
MultiMedia by 2002 South-