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External Environment and Organizational Culture

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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

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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.

Economics Condition

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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

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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

Sociocultural Condition

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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

Technological Condition

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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

Natural Condition

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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
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