Chap 3. powerpoint - 1 1 Organization & Management...

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Unformatted text preview: 1 1 Organization & Management Organization & Management MAN 3025 MAN 3025 Prof. Prof. Wernick Wernick Chapter 3 Assessing External Environments 2 Learning Objectives Learning Objectives Understand the difference between a firms internal, external, general, and task environment. Grasp the key role of the external environment in mgmt decisions. Explain the five major dimensions of an orgs general environment. Describe the critical forces in the organizations task environment. After studying this chapter, you should be able to: 3 Louis Borders Louis Borders s Big s Big Misadventure Misadventure 2 4 WebVan WebVan : An Idea That : An Idea That Couldn Couldn t Fail? t Fail? Entrepreneur Louis Borders launched Webvan during the height of dot-com boom (late 1990s). Idea: take orders for groceries and other merchandise over the Net and deliver to consumers -- for free! 5 WebVan WebVan : The Dream Team : The Dream Team Assembled dream team of executives including George Shaheen from Arthur Andersen to serve as CEO. Lined up investors such as Goldman Sachs and Sequoia Capital and amassed $1B in venture capital. 6 Attracting Eyeballs Attracting Eyeballs Flush with cash, Webvan began building enormous, state-of-the-art warehouses in dozens of cities and buying refrigerated trucks & vans. Anticipated huge future demand for service and focused on building brand and attracting eyeballs (i.e., driving traffic to website). 3 7 The IPO The IPO Webvan goes public in November 1999. Opening share price: $15. Heavy demand pushes share price up to $34. Webvan raises $375M in cash. CEO Shaheen announces ambitious plan to launch service in 26 cities and hire 5,000 new employees. 8 The Bubble Bursts The Bubble Bursts By mid-2000, the business environment had changed (dot-com bubble had burst). Investors were no longer throwing money at the dot- coms; they wanted to see viable plans for profitability Webvan didnt have one. 9 End of the Party End of the Party Webvan quickly burned through its start- up cash operating its pricey warehouses and couldnt raise additional money. Began cutting costs and charging fees in an effort turn a profit it didnt work. Firm goes belly-up in July 2001 nine months after its IPO. We made the assumption that capital was endless, and demand was endless.-Former Webvan CEO Robert Swan 4 10 Organization Environment Organization Environment External Environment General Environment Adapted from Exhibit 3.1: Organization Environment General Environment G l o b a l T e c h n o l o g y E c o n o m i c Political-Legal S o c i o c u l t u r a l 11 General Environment Organization Environment Organization Environment External Environment General Environment Task Environment G l o b a l T e c h n o l o g y E c o n o m i c Political-Legal S o c i o c u l t u r a l Competitors S u p p l i e r s R e g u l a t o r s Strategic Partners...
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This note was uploaded on 03/07/2010 for the course FIN 3403 taught by Professor Keys during the Spring '10 term at Florida Southern College.

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Chap 3. powerpoint - 1 1 Organization & Management...

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