Textbook Notes (369,198)
Canada (162,457)
MGHB02H3 (269)
Chapter 15

Chapter 15 Notes

2 Pages

Management (MGH)
Course Code
Julie Mc Carthy

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Chapter 15 Environment, Strategy, and Technology Notes The External Environment of Organizations N external environment events and conditions surrounding an organization that influence its activities N the external environment profoundly shapes organizational behaviour Organizations as Open Systems N open systems systems that take inputs from environment, transform them, and send them back into the environment as outputs N inputs include capital, energy, materials, information, technology, and people; outputs include various products and services N some inputs are transformed, which other inputs assist in the transformation process N transformation processes may be physical, intellectual, or even emotional Components of the External Environment N components include: the general economy, customers, suppliers, competitors, socialpolitical factors, and technology N organizations that survive through selling products or services often suffer from an economic downturn and profit from an upturn N when downturn occurs, competition for remaining customers increases, and organizations might postpone needed improvements N all organizations have potential customers for their products and services N organizations are dependent on environment for supplies, which include labour, raw materials, equipment, and component parts N organizations cannot ignore the social and political events that occur around them N changes in public attitudes toward ethic diversity, the proper age for retirement, the environment, corporate social responsibility, or the proper role of big business will soon affect themthey find expression in law through the political process N the environment contains a variety of technologies that are useful for achieving organizational goals N the ability to adopt proper technology should enhance an organizations effectiveness N interest groups parties or organizations other than direct competitors that have some interest in how organization is managed N different parts of the organization will often be concerned with different environmental components N finally, events in various components of the environment provide both constraints and opportunities for organizations N although environments with many constraints (e.g., high interest rates, strong competition, and so on) appear pretty hostile, an opportunity in one environmental sector might offset a constraint in another Environmental Uncertainty N environmental uncertainty condition that exists when external environment is vague, difficult to diagnose, and unpredictable N uncertainty depends on the environments complexity (simple vs. complex) and its rate of change (static vs. dynamic): o simple environmentinvolves relatively few factors, and these factors are fairly similar to each other o complex environmentcontains a large number of dissimilar
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