MGT1FOM_ReviewQus_Week3

MGT1FOM_ReviewQus_Week3 - LaTrobe University Faculty of Law...

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LaTrobe University Faculty of Law and Management School of Management MGT1FOM: Foundations of Management Tutorial Review Questions: Answer Guide Topic 3: The business environment and corporate culture 3. What do you think are the most important forces in the external environment creating uncertainty for organisations today? Do the forces you identified typically arise in the task environment or the general environment? Uncertainty is defined by two dimensions: the number of factors in the environment (complexity), and the rate of change of those factors. Uncertainty generally results from a lack of accurate information about external events and the effect they will have on the organisation and its goals. Therefore, depending on the organisation and the nature of its operations, a number of general and specific responses are possible. Although such events could come from either the task or the general environment, they are more likely to come from the general environment. An organisation is more likely to be in touch with and know what to expect from competitors, suppliers, and customers than it is with the general environment. It is also more likely to be able to influence changes in its task environment. It is more difficult to obtain information and predict events relating to the broader social, demographic and economic forces that make up the general environment. 4. Contemporary best-selling management books often argue that customers are the most important element in the external environment. Do you agree? In what company situations might this statement be untrue? Customers obviously play a crucial role in the success of organisations. Without customers, there is no demand for an organisation’s products or services. However, at certain times or in particular situations, some organisations may have to be more concerned with other elements of the external environment. For example, oil companies currently have plenty of customers, but there is general agreement that the worldwide
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supply of oil is shrinking. Rather than customers necessarily being their prime concern,
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MGT1FOM_ReviewQus_Week3 - LaTrobe University Faculty of Law...

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