Chapter 2 The external environment and the organizational structure

Chapter 2 The external environment and the organizational structure

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Unformatted text preview: Chapter 02 - The External Environment and Organizational Culture Chapter 2 THE EXTERNAL ENVIRONMENT AND ORGANIZATIONAL CULTURE KEY STUDENT QUESTIONS The two questions that come up most often for this chapter are: 1. Can you explain again the difference between the macroenvironment and the task environment? (Or a request to explain a particular element of either environment.) . 2. As a manager, what should I do to respond to a changing environment? Fortunately, the text has tools to help you deal with both of these questions more effectively. The first question is best addressed with examples, and students often find it useful to go through an example or two for a specific company. Start by discussing the high tech industry, using the information in the text and the From the Pages of Business Week section called Google Steps into Microsofts Office. Next, ask students to name a company with which they are familiar, and have them identify examples of each of the different environmental factors for that organization. If your students cant think of an organization, try using something with which they are likely to be familiar, such as Kaiser Permanente (a large national HMO.) A completed example appears below in the instructions for Experiential Exercise 2.1, External Environment Analysis in the Class Prework Assignment. The second question is best addressed by having students work together to complete the concluding case study Wild Water Gets Soaked. The brainstorming activity that students do to complete the third discussion question for that case (Now, create a plan for Wild Water. In your plan, describe what changes the organization needs to make to its culture to meet the upcoming challenges in the external environment. Then describe steps that Wild Water can take to compete successfully against the new amusement part. How can the Salernos keep their loyal customers happy while attracting new ones?) also serves as an excellent introduction to Chapter 3 - Decision Making. 2-1 Chapter 02 - The External Environment and Organizational Culture CLASS PREWORK ASSIGNMENT EXERCISE 2.1: EXTERNAL ENVIRONMENT ANALYSIS Objective To give students the experience of performing an analysis of a companys external environment. Suggested Responses to Student Questions 1. Laws and Regulations. What are some key laws and regulations under which this company and the music industry must operate? Key laws and regulations in the music industry might include copyright regulations, contracts, royalty practices in both retail sales and radio broadcasting, anti-trust, advertising regulations, foreign-trade practices. 2.Economy. How does the state of the economy influence the sales of this companys products?...
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Chapter 2 The external environment and the organizational structure

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