Professional Documents
Culture Documents
Managers
Chapter 2
•Customers
– Organizations exist to meet the needs of customers.
•Suppliers
– Provide materials and equipment as well as financial and
labour inputs.
•Competitors
– Most organizations have one or more competitors to
which they must be prepared to respond.
• Foreign Subsidiary
– Direct investment in a foreign country by creating a
separate and independent production facility or office
Copyright © 2017 Pearson Canada Inc. 2-19
How the Environment Affects Managers
• Environmental uncertainty is defined as the degree
of change and complexity in an organization’s
environment
– Degree of change: How dynamic or stable is the external
environment?
– Degree of complexity: The number of components in an
organization’s environment and the extent of an
organization’s knowledge of these components.