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Chapter 4: ENVIRONMENT AND ORGANIZATIONAL CULTURE CHAPTER 4 OVERVIEW With the 21 st century upon us, the old ways of management aren’t good enough anymore. The best of the past must be combined with new thinking to lead organizations of tomorrow to real “competitive advantage” –– having a unique product or process that makes it hard for competitors to duplicate organizational performance in the marketplace. This chapter examines how organizations manage organizational culture and diversity to establish competitive advantage in addressing the environmental challenges of the 21 st century. The chapter begins by defining competitive advantage and considering the relevance of the external environment for organizational efforts to secure it. Next, both “general” and “specific” aspects of the external environment that influence and pose challenges for modern organizations are examined. The role that environmental uncertainty plays in challenging managers and their
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Unformatted text preview: organizations to be flexible and responsive to new and changing conditions is also considered. The chapter then introduces ideas about customer-driven organizations. Customer relationship management builds and maintains strategic relationships with customers and supply chain management builds and maintains strategic relationships with suppliers. At this point, the focus of the chapter shifts to organizational culture. This section begins by defining organizational culture, describing what “strong” cultures do, and identifying different levels of organizational culture. The roles of value-based management and symbolic leadership in organizational culture are discussed as well. The chapter finishes with an examination of diversity and competitive advantage. It examines the challenges faced by organizational minorities and the process of managing diversity....
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