Chapter 3 contains an updated look at current issues related to the environment and corporate culture, including a new section on issues related to the natural environment and managers’ response to environmental advocates. The chapter also illustrates how managers shape a high–performance culture as an innovative response to a shifting environment. | The Environment and Corporate Culture Chapter 3 Organizational Environment All elements existing outside the boundary of the organization that have the potential to affect the organization Manager’s Challenge: IBM, p. 77 External Environment General environment – affects indirectly Task environment Affects directly Influences operations and performances Internal environment – elements within the organization’s boundaries Organizational Environments Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers International Dimension Provides New Customers Competitors Suppliers Shapes: Social trends Technological trends Economic trends Technological Dimension Scientific and technological advances Specific industries Society at large Impact Competition Relationship with Customers Medical advances . | The Environment and Corporate Culture Chapter 3 Organizational Environment All elements existing outside the boundary of the organization that have the potential to affect the organization Manager’s Challenge: IBM, p. 77 External Environment General environment – affects indirectly Task environment Affects directly Influences operations and performances Internal environment – elements within the organization’s boundaries Organizational Environments Management Employees Culture Internal Environment Suppliers Competitors Customers Labor Market Legal/Political Economic Technological Socio-Cultural International General Environment Task Environment Technological Suppliers International Dimension Provides New Customers Competitors Suppliers Shapes: Social trends Technological trends Economic trends Technological Dimension Scientific and technological advances Specific industries Society at large Impact Competition Relationship with Customers Medical advances Nanotechnology advances Socio-Cultural Dimension Dimension of the general environment Demographic characteristics Norms Customs Values Key Demographic Trends in . By 2050 non-Hispanic whites will make up only about half of the population, down from 74% in 1995; and 69% in 2004 Baby boomer generation is aging and losing interest in high-cost goods. Generation Y, rival them in size, will soon rival them in buying power. The single father household is the fastest growing living arrangement, which rose 62% in 10 years. Two-parent and single-mother households are still much more numerous Unprecedented demographic shift = married couple households slipped from 80% in 1950s to just over 50% in 2003. Couples with kids= 25%, with projection 20% by 2010 and 30% of homes inhabited by someone who lives alone. Economic Dimension General economic health Consumer purchasing power Unemployment rate Interest rates Recent Trends Frequency of mergers and acquisitions Small business sector vitality
