avoiding foreign-owned business laws. Becoming Aware of Cultural Differences National Culture – the shared values and beliefs that affect the perceptions, decisions, and behaviour of the people of a particular country. Preparing for and international assignment Expatriate – someone who works outside their native country A lot of companies don’t do training thus leading to potential cultural clashes Family members don’t get training in the new foreign land they will be living in and how everything goes. Lesson 4 Organizational Environments and Cultures Changing Environments External Environments – all events outside a company that have the potential to influence of affect it. (i.e. Uber coming into cities that Taxis fight back on so they have to make local government regulations to abide by to operate in the city such as commercial insurance, GPS, CCTV systems, etc.)
Environmental Change Environmental Change – the rate at which a company’s general and specific environment change Stable environment – an environment in which the rate of change is slow (i.e. wholesale food business. The production is very consistent year to year unless there are occasional shortages, outbreaks, or droughts. Very rare changes such as GPS tracking.) Dynamic Environment – an environment in which the rate of change is fast (i.e. phone manufacturing like Apple and Samsung with constant changes every 6 to 18 months of new cameras, to apple/Samsung pay, etc.) Punctuated Equilibrium Theory – a theory according to which companies go through long, simple periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolution), and ending with a return to stability (new equilibrium) (I.e. Airplane industry having 2 revolutionary periods in the past 30 years otherwise a quite stable industry) Environment Complexity Environmental Complexity – the number of external factors in the environment affect organizations Simple Environment – an environment with few environmental factors. (i.e. dairy industry, milk is produced the same way for decades with consistent production and little growth) Complex environment – an environment with many environmental factors. (i.e. newspaper industry having to change to the online worlds as advertising for classified were eliminated with sites such as kijiji. Adding subscription fees online for some newspapers.) Resource Scarcity – the abundance of shortage of critical organizational resources in an organizations external environment (i.e. Pakistan garment manufacturer dealing with power outages 12 to 18 hours a day thus having to reduce the work force and only run the plant 1/3 the times and turning down orders) Uncertainty – extent to which managers can understand or predict which environmental changes and trends will affect their businesses.
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