THE ENVIRONMENT

OF MANAGEMENT

CORPORATE CULTURE AND THE ENVIRONMENT

External environment

General environment

Technological – tools that make business be more effective to increase the production

Natural – sensitivity towards earth’s diminishing natural resources and the environment impact of the products and business practices

Sociocultural – demographic characteristics like norm, customs, and values of general population

Economics – general economic health like consumer purchasing power, the unemployment and interest rates of particular country or region

Legal/politic –political activities designed to influence company behaviour affected by government regulation

International - huge competitive in dealing with others countries legal, political, sociocultural and economic factors

Task environment

Customers – people and organizations in the environment that acquire goods or services from that particular organization.

Competitors – other organizations in the same industry that provide goods or services to the same set of consumers

Suppliers – provide the raw materials to the organization use to produce its product

Labour market – people who can be hired to work for the organization

CORPORATE CULTURE AND THE ENVIRONMENT

Internal environment

Symbols – object, act, or event that conveys the meaning to others and interaction with the environment

Heroes – role model for employees to follow and attributes of a strong culture

Stories – symbolized the firm’s vision and value, make employees personalized and absorb it.

Slogans – sentence that succinctly express a key corporate value and reflected the organization’s image

Ceremonies – activity at a special event that can benefits and giving appreciation to the employees

CORPORATE CULTURE AND THE ENVIRONMENT

types of culture

Type of culture

Adaptability culture – manager requires fast response and high-risk decision making by encourage and rewarding creativity, experimentation and risk-taking

Achievement culture – values of competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results

Involvement culture – acknowledge employee needs, the organization can create caring and family-like environment

Consistency culture – following the rules, giving period to complete a certain task will drive workers to finish on time and on budget

MANAGING IN A GLOBAL ENVIRONMENT

borderless world

Borderless world

Domestic stage – limited market potential only at home country, with all production and marketing facilities located at home

International stage – product design, marketing, advertising are adapted to the specific needs of each country, requires a high level of sensitivity to local values and interests

Multinational stage – delivering a similar product to multiples country. The marketing and production facilities located in many countries.

Global – make sales and acquiring resources in whatever country offers the best opportunities and lowest costs

MANAGING IN A GLOBAL ENVIRONMENT

economic environment

Economic environment

Resource and product markets

Economic interdependence

MANAGING IN A GLOBAL ENVIRONMENT

sociocultural environment

Social value

Communication differences

Other culture characteristics

Developing culture intelligence

ETHICS AND SOCIAL RESPONSIBILITY

Definition

ethics and social responsibility

- Ethic is the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong. An ethic issue is present in a situation when the actions of a person or organizations may harm or benefit others.

- Managers are the role models. The most important ways mangers create ethical and socially responsible organizations is by practicing ethical leadership. However, unethical managers seek to serve their own needs and interests at the expense of stockholders.

ETHICS AND SOCIAL RESPONSIBILITY

ethical decision making

ethical decision making

Utilitarian approach – produce the greatest good for the greatest number

Individualism approach – promote the individual’s best long-term interests

Moral right approach – avoid to interfering other’s privacy

Justice approach – decisions must base on standard equity, fairness and impartially

Virtue ethics approach – develops good character traits leading to be a virtuous person

Practical approach – right or good and based decision on prevailing standards of the large society

SMALL BUSINESS START-UPS

definition

definition

Small businesses are determined as one that is independently owned and operated, is organized for profit and is not dominant in its field of operation.

The small businesses generally proceed through five stages of growth which are start-up, survival, success, take off and resources maturity

SMALL BUSINESS START-UPS

launching an entrepreneurial start-up

launching an entrepreneurial start-up

• Starting with an idea

• Writing the business plan

• Choosing a legal structure

• Arranging financing

• Tactics for becoming a business owner

• Starting online business

SMALL BUSINESS START-UPS

managing a growing business

managing a growing business

Stage of growth – start-up, survival, success, take off, resources maturity

Planning – define goal and decide on the task and use the of resources needed

Organizing – separate tasks according the departments

Leading – motivate others to perform well

Controlling – implement structured control system, control the limited resources