3 The Organizational o Environment CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-1 The Organizational Environment 3
3-2 Organizational Environment oOrganizational Environment:: those forces outside its boundaries that can impact it. Forces can change over time and are made up of Opportunities and Threats oPportunities: openings for managers to enhance revenues or open markets. New technologies new markets and ideas o Threats. issues that can harm an organization economic recessions, oil shortages o Managers must seek opportunities and avoid threats win/MeGraw-Hill OThe McGraw-Hill Companies. Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-2 Organizational Environment ⚫Organizational Environment: those forces outside its boundaries that can impact it. ◼ Forces can change over time and are made up of Opportunities and Threats. ⚫Opportunities: openings for managers to enhance revenues or open markets. ◼ New technologies, new markets and ideas. ⚫Threats: issues that can harm an organization. ◼ economic recessions, oil shortages. ⚫Managers must seek opportunities and avoid threats
3-3 Forces in the Organizational Environment Figure 3.1 General Environment Technological Task Environment Sociocultural Forces Forces Competitors Global Supplier Firm Customers Economic Forces F orces Distributors Political Demographic Legal Forces Forces " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-3 Forces in the Organizational Environment Figure 3.1 Distributors Firm Task Environment Supplier s Competitors Customers General Environment Economic Forces Global Forces Sociocultural Forces Demographic Forces Technological Forces Political & Legal Forces
3-4 Task Environment o Task Environment: forces from suppliers distributors customers, and competitors o Suppliers: provide organization with inputs Managers need to secure reliable input sources Suppliers provide raw materials, components, and even labor Working with suppliers can be hard due to shortages, unions. and lack of substitutes Suppliers with scarce items can raise the price and are in a good bargaining position Managers often prefer to have many, similar suppliers of each item " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-4 Task Environment ⚫Task Environment: forces from suppliers, distributors, customers, and competitors. ⚫Suppliers: provide organization with inputs ◼ Managers need to secure reliable input sources. ◼ Suppliers provide raw materials, components, and even labor. ◆ Working with suppliers can be hard due to shortages, unions, and lack of substitutes. ◆ Suppliers with scarce items can raise the price and are in a good bargaining position. ◼ Managers often prefer to have many, similar suppliers of each item
3-5 Task Environment dIstributors: organizations that help others to sell goods Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs Some distributors like Wal-Mart have strong bargaining power They can threaten not to carry your product o Customers. people who buy the goods Usually, there are several groups of customers e For compag there are business home . government uyers Irwin/McGraw-Hill CThe McGraw-Hill Companies, Inc, 2000
Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 3-5 Task Environment ⚫Distributors: organizations that help others to sell goods. ◼ Compaq Computer first used special computer stores to sell their computers but later sold through discount stores to reduce costs. ◼ Some distributors like Wal-Mart have strong bargaining power. ◆ They can threaten not to carry your product. ⚫Customers: people who buy the goods. ◼ Usually, there are several groups of customers. ◆ For Compaq, there are business, home, & government buyers