1. MultiMedia by Stephen M. Peters© 2002 South-Western The Manager’s Environment

2. MultiMedia by Stephen M. Peters© 2002 South-Western The process of collecting information about the external environment. The process of collecting information about the external environment. Environmental Scanning Identifies and analyzes trends. Allows managers to determine best response to an environmental change. Allows managers to determine best response to an environmental change. Identifies signals of change.

3. MultiMedia by Stephen M. Peters© 2002 South-Western Indirectly Interactive Forces External Environment Economic Legal/PoliticalSociocultural TechnologicalNatural The Organization as an Open System

4. MultiMedia by Stephen M. Peters© 2002 South-Western Indirectly Interactive Forces External Environment Economic Legal/PoliticalSociocultural TechnologicalNatural Directly Interactive Forces Owners Suppliers/PartnersCompetitors Customers Labor Force The Organization as an Open System

5. MultiMedia by Stephen M. Peters© 2002 South-Western Indirectly Interactive Forces External Environment Economic Legal/PoliticalSociocultural Technological Natural Directly Interactive Forces Owners Suppliers/PartnersCompetitors Customers Labor Force Internal Environment Inputs People Information Facilities Infrastructure Equipment Machinery Materials Supplies Finances

6. MultiMedia by Stephen M. Peters© 2002 South-Western Indirectly Interactive Forces External Environment Economic Legal/PoliticalSociocultural TechnologicalNatural Directly Interactive Forces Owners Suppliers/PartnersCompetitors Customers Labor Force Internal Environment Feedback Inputs People Information Facilities Infrastructure Equipment Machinery Materials Supplies Finances Processing Transformation through applications of workforce expertise and technology

7. MultiMedia by Stephen M. Peters© 2002 South-Western Indirectly Interactive Forces External Environment Economic Legal/PoliticalSociocultural TechnologicalNatural Directly Interactive Forces Owners Suppliers/PartnersCompetitors Customers Labor Force Internal Environment Feedback Inputs People Information Facilities Infrastructure Equipment Machinery Materials Supplies Finances Processing Transformation through applications of workforce expertise and technology Outputs Products Services Profits or Losses Customer Satisfaction Ethical Behavior Socially Responsible Behavior

8. MultiMedia by Stephen M. Peters© 2002 South-Western C ompany’s Mission  Primary reason for existence.  Is the “touchstone.”  Should include whom it serves, how, and why.  Most effective are easily recalled.  Provide direction and motivation for the organization.

9. MultiMedia by Stephen M. Peters© 2002 South-Western Company’s Vision What it wants to evolve into over time. Made real by engaging the minds, as well as the hearts, of others. What it wants to evolve into over time. Made real by engaging the minds, as well as the hearts, of others. Company’s Core Values The fundamental principles it will not compromise. Serves as a baseline for actions and decision making. Guides employees in the organization’s intentions and interests. The fundamental principles it will not compromise. Serves as a baseline for actions and decision making. Guides employees in the organization’s intentions and interests.

10. MultiMedia by Stephen M. Peters© 2002 South-Western Intellectual Capital It’s collective experiences Wisdom Knowledge Expertise

11. MultiMedia by Stephen M. Peters© 2002 South-Western Organizational Culture  Shared values  Beliefs  Philosophies  Experiences  Customs  Norms of behavior

12. MultiMedia by Stephen M. Peters© 2002 South-Western Leadership  Means influencing others.  Leaders should encourage and enable followers.  Is influenced by elements both inside and outside an individual.  Involves setting an example.  Leaders must “walk like they talk.”  Creates a generative shared vision.  Provides the catalyst for perpetual learning.  Means influencing others.  Leaders should encourage and enable followers.  Is influenced by elements both inside and outside an individual.  Involves setting an example.  Leaders must “walk like they talk.”  Creates a generative shared vision.  Provides the catalyst for perpetual learning.

13. MultiMedia by Stephen M. Peters© 2002 South-Western Boundaryless Organizations Not defined or limited by horizontal, vertical, or external boundaries. Share many of the characteristics of flat organizations. Strong emphasis on teams. Organizations

14. MultiMedia by Stephen M. Peters© 2002 South-Western Learning Organization Able to adapt and respond to change. Skilled at creating, acquiring, and transferring knowledge. Modifying its behavior to reflect new knowledge and insights. 1 2 3

15. MultiMedia by Stephen M. Peters© 2002 South-Western Managers Facilitate Learning by Sharing Aligning the organization Developing strong culture Sustaining a sense of community

16. MultiMedia by Stephen M. Peters© 2002 South-Western Trends in Supplier Practices First, companies increased their use of outsourcing. Second, companies develop close alliances with outside suppliers. Third, “deep” alliances with fewer, more dependable suppliers. Fourth, companies are more willing to procure needed supplies from anywhere in the world.

17. MultiMedia by Stephen M. Peters© 2002 South-Western Businesses Compete on the Basis of Price Quality Selection Product features and performance Customer services

18. MultiMedia by Stephen M. Peters© 2002 South-Western Major Indirect Interactive Forces  Economic Forces-levels of taxes, wages, prices, interest rates, personal spending and saving, business spending and profits, inflation, and the state of the entire economy.  Legal/Political Forces-statutes enacted by legislatures, court decisions, regulations and rulings, local regulatory agencies, and agreements between and among governments.

19. MultiMedia by Stephen M. Peters© 2002 South-Western Major Indirect Interactive Forces (cont’d)  Sociocultural Forces-influences and contributions from diverse groups outside an organization.  Technological Forces-processes, materials, knowledge, and other discoveries resulting from research and development activities.  Natural Forces-climate, weather, geography, and geology.

20. MultiMedia by Stephen M. Peters© 2002 South-Western Challenges Risks Changes Opportunities Environmental Forces Create:

21. MultiMedia by Stephen M. Peters© 2002 South-Western Boundary Spanning Requires current information about what is happening or likely to happen. Look for developments that can influence plans, forecasts, decisions, and organizations. Keep up to date and establish networks.