MGMTCh3 - Chapter3 andCultures MGMT Designed Prepared by...

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  1 B-books, Ltd. MGMT Chuck Williams Chapter 3 Organizational Environments  and Cultures
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  2 External Environments After reading the next four sections, you should be able to: 1. discuss how changing environments affect organizations. 2. describe the four components of the general environment. 3. explain the five components of the specific environment 4. describe the process that companies use to make sense of their changing environments.
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  3 Changing Environments Environmental Change Environmental Complexity Resource Scarcity Uncertainty Characteristics of Changing External Environments 1
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  4 Beyond the Book Nissan Responds to Changing  Auto Industry The auto industry is rapidly changing as consumers become more concerned with the environment, traditional markets slow down, and new markets develop in countries like China and India. Nissan CEO Carlos Ghosn responds with focus on tech research for environmentally sustainable models and low-priced models for developing markets. Ghosn plans to develop a Nissan hybrid by 2010, release an all-electric car in Japan by 2011, and make a $3000 model to compete with Tata in India. Source: A. Taylor III, “Nissan’s Radical Chic,” Fortune , 29 October 2007, 127-134.
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  5 Environmental Change Environmental Change is the rate at which a company’s environments change stable environments dynamic environments Punctuated equilibrium theory Companies cycle through stable and dynamic environments . 1.1
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  6 Environmental Complexity Environmental Complexity: the number of external factors in the environment that affect organizations Simple environments Complex environments 1.2
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  7 Resource Scarcity Resource Scarcity The degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources 1.3
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  8 Natural  Resources The scarcity of natural resources is a general concern. Companies like Weyerhauser work extra hard to correct the misperception that they are using up valuable resources. In fact, through careful planning and good management, Weyerhauser is able to both guarantee its lumber resources and be a good environmental steward.
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  9 Uncertainty 1.4
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  10 External Environment 2
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This note was uploaded on 06/17/2011 for the course BUS 347 taught by Professor Cherylluczak during the Fall '10 term at St. Xavier.

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MGMTCh3 - Chapter3 andCultures MGMT Designed Prepared by...

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