Management meeting and exceeding customer expectation 8th ch05
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The Manager’s
Environment
Chapter 5
MANAGEMENT
Meeting and Exceeding Customer Expectations
EIGHTH EDITION
Prepared by
Deborah Baker
Texas Christian University
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
1
learning objectives
1. Discuss why organizations are open systems
2. Identify the elements in an organization’s
internal environment
3. Describe the directly interactive forces in an
organization’s external environment
4. Describe the indirectly interactive forces in an
organization’s external environment
5. Discuss the means available to managers for
boundary spanning
6. Explain how managers can influence their
Chapter 5
external environments
7. Describe the obligations that organizations have
to their stakeholders
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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The Organization as a System
Environmental
Environmental
Scanning
Scanning
The process of collecting
information about the external
environment
Identifies and analyzes trends
Allows managers to determine the best
response to an environmental change
Chapter 5
Identifies signals of change
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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11
The Organization as a System
Economic
External Environment
Natural
Technological Indirectly interactive forces
Owners
Customers
Inputs
Chapter 5
People
Information
Facilities
Infrastructure
Equipment
Machinery
Materials
Supplies
Finances
Directly interactive forces
Suppliers / Partners
Processing
Transformation
through
applications of
workforce
expertise and
technology
Internal Environment
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
Legal / Political
Sociocultural
Competitors
Labor Force
Outputs
Products
Services
Profits or
Losses
Customer
Satisfaction
Ethical
Behavior
Socially
Responsible
Behavior
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Internal Environment
AACompany’s
Company’s Mission
Mission
Primary reason for existence
The “touchstone”
Should include whom it serves,
how, and why
Easily recalled
Provides direction and motivation
for the organization
Chapter 5
Gets the emotional bonding and
commitment needed
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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Core Competencies
Core
Core
Competencies
Competencies
Chapter 5
Intellectual
Intellectual
Capital
Capital
What an organization knows
and does best
Collective experiences
Wisdom
Knowledge
Expertise
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Organizational Culture
Shared
Shared
Values
Values
Beliefs
Beliefs
Chapter 5
Experiences
Experiences
Philosophies
Philosophies
Customs
Customs
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
Norms
Norms of
of
Behavior
Behavior
7
Leadership
22
Chapter 5
Influencing others
Encouraging and enabling followers
“Walking the talk”
Setting an example
Creating a generative shared vision
Providing the catalyst for perpetual
learning
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
8
22
Organizational Structure
Boundaryless
Boundaryless
Organization
Organization
Chapter 5
Learning
Learning
Organization
Organization
Not defined or limited by
horizontal, vertical, or external
boundaries imposed by a
predetermined structure
• Able to adapt to change
• Skilled at creating, acquiring,
and transferring knowledge
• Modifies its behavior to reflect
new knowledge and insights
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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Resources
Information
Information
Facilities
Facilities and
and Infrastructure
Infrastructure
Machinery
Machinery and
and Equipment
Equipment
Chapter 5
Materials
Materials and
and Supplies
Supplies
Finances
Finances
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
10
33
Directly Interactive Forces
Owners
Owners
Customers
Customers
Suppliers
Suppliers
and
and Partners
Partners
Chapter 5
Competitors
Competitors
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
External
External
Labor
LaborPool
Pool
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Trends in Supplier Practices
Increased
Increased use
use of
of outsourcing
outsourcing
Close
Close alliances
alliances with
with outside
outside suppliers
suppliers
“Deep”
“Deep” alliances
alliances with
with fewer
fewer suppliers
suppliers
Chapter 5
Foreign
Foreign sources
sources for
for needed
needed supplies
supplies
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12
33
Competitive Bases
Price
Price
Quality
Quality
Convenience
Convenience
Selection
Selection
Product
Product
Features
Features
Performance
Performance
Chapter 5
Customer
Customer
Services
Services
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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44
Indirectly Interactive Forces
Economic
Economic
Legal
Legal//
Political
Political
Sociocultural
Sociocultural
Chapter 5
Technological
Technological
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Natural
Natural
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Economic Forces
44
Taxes
Taxes
Wages
Wages
Inflation
Inflation
Prices
Prices
Personal
Personal
Spending
Spending
Chapter 5
Interest
Interest
Rates
Rates
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Business
Business
Spending
Spending
State
Stateof
of
Economy
Economy
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44
Legal / Political Forces
Legislative
Legislative Statutes
Statutes
Court
Court Decision
Decision Precedents
Precedents
Regulations
Regulations and
and Rulings
Rulings
Chapter 5
Agreements
Agreements among
among Governments/Companies
Governments/Companies
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44
Sociocultural Forces
Chapter 5
Sociocultural
Sociocultural
Forces
Forces
The influences and contributions
from diverse groups outside an
organization
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44
Technological Forces
Processes
Processes
Materials
Materials
Knowledge
Knowledge
Chapter 5
Other
Other Discoveries
Discoveries
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44
Natural Forces
Climate
Climate
Weather
Weather
Geography
Geography
Chapter 5
Geology
Geology
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Sensing and Adapting to
Environments
Boundary
Boundary
Spanning
Spanning
The surveillance of outside
areas and factors that can
influence plans, forecasts,
decisions, and organizations
Chapter 5
Sometimes called environmental
scanning
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved
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66
Influencing Environments
Influencing
Influencing Legislation
Legislation
Chapter 5
Using
Using the
the power
power of
of the
the media
media
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Chapter 5
77
Meeting Responsibilities to
Stakeholders
Owners
Owners
A
A fair
fair return
return on
on investment
investment
Employees
Employees
A
A safe
safe and
and psychologically
psychologically rewarding
rewarding
environment
environment
Customers
Customers
Sources
Sources for
for goods
goods and
and services
services
Suppliers
Suppliers
Honest
Honest and
and open
open communication
communication
Payment
Payment for
for services
services
Society
Society
Compliance
Compliance with
with laws
laws that
that protect
protect the
the
environment
environment and
and ethical
ethical behavior
behavior
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