First Canadian Edition
Slides prepared by
Janice Edwards
College of the Rockies
Copyright © 2009 Nelson Education Ltd.

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Learning Objectives
3.
4.
5.
6.
1.
2.
Describe the general and task environments and the dimensions of each.
Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment.
Define corporate culture and give organizational examples.
Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture.
Describe how corporate culture relates to the environment.
Define a cultural leader and explain the tools a cultural leader uses to create a high performance culture.
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The External Organizational Environment
• All elements existing outside the organization's boundaries that have the potential to affect the organization.
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External Environment’s Two Layers
1.
General environment.
2.
Task environment.
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Ex. 2.1
Location of the Organization’s General,
Task, and Internal Environments

Importance of International Dimension
•
•
•
•
Provides new:
Customers
Competitors
Suppliers
Labour market
•
•
•
Shapes:
Sociocultural trends
Technological trends
Economic trends
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Technological Dimension
• Includes scientific and technological advancements in specific industry, and society at large.
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Sociocultural Dimension
• Demographic characteristics, and the norms, customs, and values of the general population.
• Important characteristics are geographical distribution and population density, age, and education levels.
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Sociocultural Dimension (Cont’d)
•
•
•
Key demographic trends in Canada:
Visible minorities will make up 20% of the Canadian population by the year 2016.
The baby boomers are approaching retirement and losing interest in high-cost goods.
Traditional married couple households (mother, father, and children) have slipped from 55% in 1981 to 44% in 2001.
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Organization’s
Economic Environment
•
•
•
•
Influenced by:
Consumer purchasing power
Unemployment rate
Interest rates
Complexity creates uncertainty for managers
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Legal-Political Environment
•
Influenced by:
Government regulations
•
• Municipal
Provincial
• Federal
Considers political activities designed to influence company behaviour.
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Task Environment:
Customers
•
•
•
Customers have increased power via the Internet.
Customers can directly impact organizations in new ways.
Managers are using the Internet to learn about customers.
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Task Environment:
Competitors
•
•
Each industry is characterized by specific competitive issues.
Competitive wars are being waged worldwide in all industries.
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Task Environment:
Suppliers
•
•
Many companies are now using fewer suppliers while trying to build better relationships with them.
Traditionally the role has been adversarial; many companies now are looking to cooperation.
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Task Environment:
Labour Market Factors
•
•
•
Growing need for computer-literate information technology workers.
The necessity for continuous investment in human resources in order to meet the demands of the borderless world.
The effects of international trading blocs, automation, and shifting plant locations.
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Ex. 2.3
The External Environment and Uncertainty
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Strategies to Adapt to the Environment
•
Boundary-spanning roles
•
Inter-organizational partnership
•
Mergers & joint ventures
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Ex. 2.5
Levels of Corporate Culture
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Visible Manifestations of
Corporate Culture
•
•
•
•
• Symbols
Stories
Heroes
Slogans
Ceremonies
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Ex. 2.7
Four Types of Corporate Cultures
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Cultural Leadership Influence
1.
2.
Cultural leadership articulates a vision for the organizational culture in which employees can believe.
Cultural leadership heeds the day-to-day activities that reinforce the cultural vision.
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