1. Understanding Management First Canadian Edition Slides prepared by
Janice Edwards
College of the Rockies
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2. The Environment and Corporate Culture Chapter 2
Chapter 2
The Environment and
Corporate Culture
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3. Learning Objectives
Describe the general and task environments and the dimensions of each.
Explain the strategies managers use to help organizations adapt to an uncertain or turbulent environment.
Define corporate culture and give organizational examples.
Explain organizational symbols, stories, heroes, slogans, and ceremonies and their relationship to corporate culture.
Describe how corporate culture relates to the environment.
Define a cultural leader and explain the tools a cultural leader uses to create a high performance culture.
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4. The External Organizational Environment
The External Organizational Environment
All elements existing outside the organization's boundaries that have the potential to affect the organization.
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5. External Environment’s Two Layers
External Environment’s Two Layers
General environment.
Task environment.
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6. Ex. 2.1 Location of the Organization’s General, Task, and Internal Environments

7. Importance of International Dimension
Importance of International Dimension
Provides new:
Customers
Competitors
Suppliers
Labour market
Shapes:
Sociocultural trends
Technological trends
Economic trends
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8. Technological Dimension
Technological Dimension
Includes scientific and technological advancements in specific industry, and society at large.
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9. Sociocultural Dimension
Sociocultural Dimension
Demographic characteristics, and the norms, customs, and values of the general population.
Important characteristics are geographical distribution and population density, age, and education levels.
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10. Sociocultural Dimension (Cont’d)
Sociocultural Dimension (Cont’d)
Key demographic trends in Canada:
Visible minorities will make up 20% of the Canadian population by the year 2016.
The baby boomers are approaching retirement and losing interest in high-cost goods.
Traditional married couple households (mother, father, and children) have slipped from 55% in 1981 to 44% in 2001.
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11. Organization’s Economic Environment
Organization’s Economic Environment
Influenced by:
Consumer purchasing power
Unemployment rate
Interest rates
Complexity creates uncertainty for managers
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12. Legal-Political Environment
Legal-Political Environment
Influenced by:
Government regulations
Municipal
Provincial
Federal
Considers political activities designed to influence company behaviour.
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13. Task Environment: Customers
Task Environment: Customers
Customers have increased power via the Internet.
Customers can directly impact organizations in new ways.
Managers are using the Internet to learn about customers.
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14. Task Environment: Competitors
Task Environment: Competitors
Each industry is characterized by specific competitive issues.
Competitive wars are being waged worldwide in all industries.
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15. Task Environment: Suppliers
Task Environment: Suppliers
Many companies are now using fewer suppliers while trying to build better relationships with them.
Traditionally the role has been adversarial; many companies now are looking to cooperation.
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16. Task Environment: Labour Market Factors
Task Environment: Labour Market Factors
Growing need for computer-literate information technology workers.
The necessity for continuous investment in human resources in order to meet the demands of the borderless world.
The effects of international trading blocs, automation, and shifting plant locations.
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17. Ex. 2.3 The External Environment and Uncertainty
Ex The External Environment and Uncertainty
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18. Strategies to Adapt to the Environment
Strategies to Adapt to the Environment
Boundary-spanning roles
Inter-organizational partnership
Mergers & joint ventures
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19. Ex. 2.5 Levels of Corporate Culture
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20. Visible Manifestations of Corporate Culture
Visible Manifestations of Corporate Culture
Symbols
Stories
Heroes
Slogans
Ceremonies
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21. Ex. 2.7 Four Types of Corporate Cultures
Ex Four Types of Corporate Cultures
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22. Cultural Leadership Influence
Cultural Leadership Influence
Cultural leadership articulates a vision for the organizational culture in which employees can believe.
Cultural leadership heeds the day-to-day activities that reinforce the cultural vision.
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