Chap 2
Organizational Environments and Cultures
Discuss how changing environments affect organizations.
Describe the four components of the general environment.
Explain the five components of the specific environment.
Describe the process that companies use to make sense of their changing environments.
Explain how organizational cultures are created and how they can help companies succeed.
Discuss How Changing Environments Affect Organizations
The first learning outcome examines internal and external environmental forces that affect business.
What is the difference between internal and external environments?
What are the characteristics of the changing external environment?
Characteristics of the Changing External Environment
These are:
Environmental change
Environmental complexity
Resource scarcity
Uncertainty
Environmental Change
, Refers to the rate at which a company’s general and specific environments change.
Rate of change comes in two forms:
Stable environment: low rate of environmental change (e.g., wholesale distribution).
Dynamic environment: high rate of environmental change (influenced by competition, technological
innovation, and consumer demand).
Research shows that companies experience both stable and dynamic environmental changes.
Explained by the punctuated equilibrium theory E.g., the airline industry
Environmental Complexity
The second characteristic of the external environment is environmental complexity.
Refers to the number and intensity of external factors in the environment that affect organizations:
Simple environments have few environmental factors.
Complex environments have many environmental factors.
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Environmental Complexity
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Organizational Environments and Cultures
Discuss how changing environments affect organizations.
Describe the four components of the general environment.
Explain the five components of the specific environment.
Describe the process that companies use to make sense of their changing environments.
Explain how organizational cultures are created and how they can help companies succeed.
Discuss How Changing Environments Affect Organizations
The first learning outcome examines internal and external environmental forces that affect business.
What is the difference between internal and external environments?
What are the characteristics of the changing external environment?
Characteristics of the Changing External Environment
These are:
Environmental change
Environmental complexity
Resource scarcity
Uncertainty
Environmental Change
, Refers to the rate at which a company’s general and specific environments change.
Rate of change comes in two forms:
Stable environment: low rate of environmental change (e.g., wholesale distribution).
Dynamic environment: high rate of environmental change (influenced by competition, technological
innovation, and consumer demand).
Research shows that companies experience both stable and dynamic environmental changes.
Explained by the punctuated equilibrium theory E.g., the airline industry
Environmental Complexity
The second characteristic of the external environment is environmental complexity.
Refers to the number and intensity of external factors in the environment that affect organizations:
Simple environments have few environmental factors.
Complex environments have many environmental factors.
ebayclassifieds.com
craigslist.com
kijiji.ca
ebayclassifieds.com
Environmental Complexity
Digital content is very inexpensive to distribute compared to print content.
