MultiMedia by Stephen M. Peters© 2002 South-Western The Manager’s Environment

MultiMedia by Stephen M. Peters © 2002 South-Western

The Manager’s Environment

MultiMedia by Stephen M. Peters © 2002 South-Western

The process of collecting information aboutthe external environment.

The process of collecting information aboutthe external environment.

Environmental Scanning

Identifies and analyzes trends.Identifies and analyzes trends.

Allows managers to determine best response to an environmental change.

Allows managers to determine best response to an environmental change.

Identifies signals of change.Identifies signals of change.

MultiMedia by Stephen M. Peters © 2002 South-Western

Indirectly Interactive Forces External Environment

Economic Legal/Political Sociocultural

Technological Natural

The Organization as an Open System

MultiMedia by Stephen M. Peters © 2002 South-Western

Indirectly Interactive Forces External Environment

Economic Legal/Political Sociocultural

Technological Natural

Directly Interactive ForcesOwners Suppliers/Partners Competitors

Customers Labor Force

The Organization as an Open System

MultiMedia by Stephen M. Peters © 2002 South-Western

Indirectly Interactive Forces External Environment

Economic Legal/Political Sociocultural

Technological Natural

Directly Interactive ForcesOwners Suppliers/Partners Competitors

Customers Labor Force

Internal Environment

Inputs PeopleInformation

FacilitiesInfrastructure

EquipmentMachineryMaterialsSuppliesFinances

MultiMedia by Stephen M. Peters © 2002 South-Western

Indirectly Interactive Forces External Environment

Economic Legal/Political Sociocultural

Technological Natural

Directly Interactive ForcesOwners Suppliers/Partners Competitors

Customers Labor Force

Internal Environment

Feedback

Inputs PeopleInformation

FacilitiesInfrastructure

EquipmentMachineryMaterialsSuppliesFinances

ProcessingTransformation

throughapplications of

workforceexpertise andtechnology

MultiMedia by Stephen M. Peters © 2002 South-Western

Indirectly Interactive Forces External Environment

Economic Legal/Political Sociocultural

Technological Natural

Directly Interactive ForcesOwners Suppliers/Partners Competitors

Customers Labor Force

Internal Environment

Feedback

Inputs PeopleInformation

FacilitiesInfrastructure

EquipmentMachineryMaterialsSuppliesFinances

ProcessingTransformation

throughapplications of

workforceexpertise andtechnology

OutputsProducts

ServicesProfits or Losses

CustomerSatisfaction

Ethical BehaviorSocially

Responsible Behavior

MultiMedia by Stephen M. Peters © 2002 South-Western

Company’s Mission

Primary reason for existence.

Is the “touchstone.”

Should include whom it serves, how, and why.

Most effective are easily recalled.

Provide direction and motivation for the organization.

MultiMedia by Stephen M. Peters © 2002 South-Western

Company’s Vision • What it wants to evolve into over time.

• Made real by engaging the minds, as well as the hearts, of others.

• What it wants to evolve into over time.

• Made real by engaging the minds, as well as the hearts, of others.

Company’s Core Values• The fundamental principles it will not compromise.

• Serves as a baseline for actions and decision making.

• Guides employees in the organization’s intentions and interests.

• The fundamental principles it will not compromise.

• Serves as a baseline for actions and decision making.

• Guides employees in the organization’s intentions and interests.

MultiMedia by Stephen M. Peters © 2002 South-Western

Intellectual Capital

It’s collective experiences

Wisdom

Knowledge

Expertise

MultiMedia by Stephen M. Peters © 2002 South-Western

Organizational Culture

Shared values

Beliefs

Philosophies

Experiences

Customs

Norms of behavior

Shared values

Beliefs

Philosophies

Experiences

Customs

Norms of behavior

MultiMedia by Stephen M. Peters © 2002 South-Western

LeadershipMeans influencing others.

Leaders should encourage and enable followers.

Is influenced by elements both inside and outside an individual.

Involves setting an example.

Leaders must “walk like they talk.”

Creates a generative shared vision.

Provides the catalyst for perpetual learning.

Means influencing others.

Leaders should encourage and enable followers.

Is influenced by elements both inside and outside an individual.

Involves setting an example.

Leaders must “walk like they talk.”

Creates a generative shared vision.

Provides the catalyst for perpetual learning.

MultiMedia by Stephen M. Peters © 2002 South-Western

Boundaryless Organizations

Not defined or limited by horizontal, vertical, or external boundaries.

Share many of the characteristics of flat organizations.

Strong emphasis on teams.

Organizations

MultiMedia by Stephen M. Peters © 2002 South-Western

Learning Organization

Able to adapt and respond to change.

Skilled at creating, acquiring, and transferring knowledge.

Modifying its behavior to reflect new knowledgeand insights.

1

2

3

MultiMedia by Stephen M. Peters © 2002 South-Western

Managers Facilitate Learning by

Sharing

Aligning the organization

Developing strong culture

Sustaining a sense of

community

MultiMedia by Stephen M. Peters © 2002 South-Western

Trends inSupplierPractices

First, companies increased their use of

outsourcing.

Second, companies develop close alliances with outside suppliers.

Third, “deep” alliances with fewer, more

dependable suppliers.

Fourth, companies are more willing to procure needed supplies from

anywhere in the world.

MultiMedia by Stephen M. Peters © 2002 South-Western

Businesses Compete onthe Basis of

• Price

• Quality

• Selection

• Product features and performance

• Customer services

MultiMedia by Stephen M. Peters © 2002 South-Western

Major Indirect Interactive Forces

Economic Forces-levels of taxes, wages, prices, interest rates, personal spending and saving, business spending and profits, inflation, and the state of the entire economy.

Legal/Political Forces-statutes enacted by legislatures, court decisions, regulations and rulings, local regulatory agencies, and agreements between and among governments.

MultiMedia by Stephen M. Peters © 2002 South-Western

Major Indirect Interactive Forces (cont’d)

Sociocultural Forces-influences and contributions from diverse groups outside an organization.

Technological Forces-processes, materials, knowledge, and other discoveries resulting from research and development activities.

Natural Forces-climate, weather, geography, and geology.

MultiMedia by Stephen M. Peters © 2002 South-Western

ChallengesChallenges RisksRisks

ChangesChangesOpportunitiesOpportunities

EnvironmentalForcesCreate:

EnvironmentalForcesCreate:

MultiMedia by Stephen M. Peters © 2002 South-Western

Boundary Spanning

Requires current information about what is happening or likely to happen.

Look for developments that can influence plans, forecasts, decisions, and organizations.

Keep up to date and establish networks.