Environment, organizational culture and diversity

95 views2 pages
GMS Week 4 Lecture Notes
Environment, organizational culture and diversity
Environmental uncertainty: is a lack of complete information regarding what exists and
what developments may occur in the external environment
Two dimensions of environmental uncertainty (refer to matrix in textbook)
1. Complexity (for example: heavy competition)
2. Rate of change (for example: IT industry has a very high rate of change)
Canada's growth rate is 1.5%, whereas China's is around 9.5-10%
What constitutes the external environment of organizations?
1.Economic
a.Companies price their products in accordance with the country's disposable
2. Income
a.E.g.: during the recession, Kia made a very smart move. Kia came into North
America and provided a warranty of 7 years, much more than average
number of years.
3.Socio-Cultural
a.Kraft - sell processed foods, contain trans-fats. May affect sales.
b.Cake mixes in Japan - a giant confectionary introduced cake mixes to the
Japanese markets. After considerable time and money, General Mills realized
that even though the Japanese loved western-style cakes, most homes didnt
have ovens! "Cakeron" was re-introduced as a cake mix adapted for the rice-
cooker. Problem solved? No, because no one considered the fact that rice was
sacred in Japan, and housewives felt the flavors contaminated the rice, even
after washing the cooker. The product was a big flop!
4.Legal-political
a.Chinese version of Windows. Microsoft entered China in early 1990s. Used
Taiwan as a production base. There has been a strong political conflict
between the two countries. Also, China has a very large market for
counterfeit products, especially in software.
5.Technological
6.Natural environment
www.notesolution.com
Unlock document

This preview shows half of the first page of the document.
Unlock all 2 pages and 3 million more documents.

Already have an account? Log in

Get OneClass Notes+

Unlimited access to class notes and textbook notes.

YearlyBest Value
75% OFF
$8 USD/m
Monthly
$30 USD/m
You will be charged $96 USD upfront and auto renewed at the end of each cycle. You may cancel anytime under Payment Settings. For more information, see our Terms and Privacy.
Payments are encrypted using 256-bit SSL. Powered by Stripe.