External Environment and Organizational Culture
BUSINESS 1 H
3rd Group
Antonio Evander
Galih Suci
Janice Alesandrina
Richard Harrisen
Stefanus Arvin
Element in the General Environments of Organization
Multiple stakeholders in the environment of an organization
Dimensions of Uncertainty
YOU CAN CLICK THIS LINK TO WATCH THE VIDEO WHICH REFERS TO THE CHAPTER :)
https://www.youtube.com/watch?v=u9XJwr9pIHc
Value Creation and Competitive Advantage
External Environment
General environment consists of all external conditions that set the context for managerial decision making.
1
Economics Condition
Offshoring
- Moving a certain business process to another country
- Ex. Iphone’s production to China
Reshoring
- Bringing back the business process from foreign country back to its origin/domestic.
- Ex. Ford offshoring to China and now bring it back to US.
Legal Political Condition
2
Legal Political
Condition
Internet censorship
- The deliberate blockage and denial of public access to information posted on the Internet.
- Ex. Google and Yahoo at China
source :
https://www.travelchinacheaper.com/yahoo-search-in-china-blocked
https://www.bbc.com/news/10449139
3
Sociocultural Condition
- Demographics and norms of society and region
- Social values (employment, gender roles, ethics, human rights, lifestyles)
- Example : workplace; a mix of generational cohorts
4
Technological Condition
- Technological development affect everything from the way we work to how we live and how we raise our children.
- Example: The existence of 3D technology, VR, AR
5
Natural Condition
- We expect organization and their managers to help preserve and respect the environment.
- Example : BP oil spills in gulf of Mexico
Environment and Value Creation
Specific environment or task environment = Is composed of the organizations, grups, and persona with whom and organization interacts and conduct business
The specific enviroment
Includes the people and groups with whom and organization interacts
Stakeholders
Are the person, groups, and institutions directly affected by an organization
Stakeholder is consisded by customer, supplier, competitor, regulator, and owner
Source:https://www.slideshare.net/muhammadsyukhrishafee/external-environment-and-organizational-culture
source : https://www.slideshare.net/muhammadsyukhrishafee/external-environment-and-organizational-culture
Value Creation and Competitive Advantage
- For customer, Business have values through pricing and quality
- For suppliers, Business create value from long term relationship
- For empeloyees, through wages and job satisfaction
- etc
- Competitive advantage can be acheived through
- cost (using technology to operate with lower costs to earn more profits)
- quality (using technology to create high quality products)
- delivery (using technology to deliver faster)
- flexibility (using technology to find ways to fit into customer’s needs)
Dimensions of Uncertainty
INTERESTS
- Environmental Uncertainty, lack of complete information
- The greater the environmental uncertainty, the more risk taking required
- Two dimensions :
- Degree of complexity
- Rate of change
- Complex and dynamic environments are the most challenging