HUMA 1745 Lecture Notes - Lecture 33: Westjet
1 May 2018
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HUMA 1745 Lecture 33 Notes – Environment
Introduction
• A orgaizatio’s eviroet icludes outside istitutios or forces that ca affect the
orgaizatio’s perforace, such as suppliers, custoers, copetitors, goveret
regulatory agencies, and public pressure groups.
• Some organizations face dynamic environments—rapidly changing government
regulations affecting their business, new competitors, difficulties in acquiring raw
materials, continually changing product preferences by customers, and so on.
• Other organizations face relatively static environments— few forces in their
environment are changing.
• Dynamic environments create significantly more uncertainty for managers than do static
ones.
• To minimize uncertainty in key market arenas, managers may broaden their structure to
sense and respond to threats.
• Most companies, including Pepsi and WestJet Airlines, have added social networking
departments to their structure so as to respond to negative information posted on
blogs.
• Or companies may form strategic alliances with other companies
• For example, Microsoft and Yahoo! joined forces to better compete with Google in the
online search provider arena.
• Ay orgaizatio’s eviroet has three diesios
• Capacity, volatility, and complexity.
• The capacity of an environment refers to the degree to which it can support growth.
• Rich and growing environments generate excess resources, which can buffer the
organization in times of relative scarcity.
• Volatility describes the degree of instability in an environment.
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