MANAGEMENT

RICHARD L. DAFT
The Environment and
Corporate Culture
CHAPTER 3
chapter3 Learning Outcomes
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.

3
Copyright 2010 by South-Western, a division of Cengage
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 Are You Fit for Managerial
chapter3
Uncertainty?
The environment in which businesses
operate are increasingly dynamic

Some managers cannot respond to

environmental surprises

In an uncertain environment, managers

need to facilitate new thinking, new ideas
and new ways of working
4
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter3 External Environment

General environment affects indirectly

Task environment
- Affects directly
- Influences operations and performances

Internal environment elements within the

organizations boundaries

5
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Learning. All rights reserved.
chapter3 International Dimension

Events originating
Portion ofinthe
foreign
external
countries
environment that
Impacts allrepresents
aspects ofevents
the external
environment
originating in foreign
countries as well as
New competitors
opportunities for U.S.
New customers
companies in other
countries.
New suppliers

Today, all companies globally 6

Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter3 Technological Dimension

Scientific and technological advances

Specific industries
Desktop computers
Society at large Networks

Impact: Internet Access
Handheld devices
Organizations Videoconferencing
Managers Cell phones
Laptop
Customers WiFi
Medical advances

7
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter3 Socio-Cultural Dimension
Dimension of the general
Todays demographics
environment
Demographic
are the foundation of thecharacteristics
Norms
future workforce Norms
Customs
Customs
Values
Demographic trends Values of population
affect organizations Geographical Distribution
Population Density
globally Age
Education Levels

8
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Learning. All rights reserved.
chapter3 Economic Dimension

General economic health

Consumer purchasing power
Unemployment rate
Interest rates

Recent Trends
Frequency of mergers and
acquisitions
Small business sector vitality
9
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Learning. All rights reserved.
chapter3 Legal-Political Dimension

Federal, state, and local government

regulations

Political activities designed to

influence company behavior

10
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Learning. All rights reserved.
chapter3 Natural Dimension
Concern for the environment

The natural dimension has no voice

Pressure comes from advocacy and managers

Eliminate nonbiodegradable plastic bags from the
environment

Improving efficiency of plants and factories

Investing in cleaner technologies

11
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Learning. All rights reserved.
chapter3 Task Environment

Sectors that have a direct working relationship with

the organization:

Customers Changes in
these various
Competitors sectors can
create
Suppliers tremendous
challenges
Labor Market

12
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter3 External Environment

13
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Learning. All rights reserved.
chapter3 Environmental Uncertainty

Management
must adapt to
changes

14
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
 Adapting to the
chapter3
Environment
Boundary-Spanning Roles: coordinating
the organization with key elements in the
external environment
Interorganizational Partnerships:
collaborating with other organizations
Mergers: combination of two
organizations
Joint Ventures: an alliance of
organizations for a specific project 15
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
 The Internal Environment:
chapter3
Corporate Culture
Corporate culture should match the needs
of the external environment

The importance of corporate culture has

been growing

Culture is a pattern of shared values

how things are done

16
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Learning. All rights reserved.
chapter3 Culture

Symbols
Stories
Heroes
Slogans
Ceremonies
17
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.
chapter3 Environment and Culture

The external environment influences

culture

The internal environment should embody

the requirements for success

Managers must pay attention to culture

Recognize the ways culture can help or hurt
your department

18
Copyright 2010 by South-Western, a division of Cengage
Learning. All rights reserved.