Management meeting and exceeding customer expectation 8th ch05

The Manager’s Environment Chapter 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 learning objectives Discuss why organizations are open systems Identify the elements in an organization’s internal environment Describe the directly interactive forces in an organization’s external environment Describe the indirectly interactive forces in an organization’s external environment Discuss the means available to managers for boundary spanning Explain how managers can influence their Chapter external environments Describe the obligations that organizations have to their stakeholders Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 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  Identifies signals of change Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 11 The Organization as a System Economic External Environment Natural Technological Indirectly interactive forces Owners Customers Inputs Chapter 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 22 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  Gets the emotional bonding and commitment needed Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 22 Core Competencies Core Core Competencies Competencies Chapter Intellectual Intellectual Capital Capital What an organization knows and does best Collective experiences Wisdom Knowledge Expertise Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 22 Organizational Culture Shared Shared Values Values Beliefs Beliefs Chapter 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 Leadership 22 Chapter       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 22 Organizational Structure Boundaryless Boundaryless Organization Organization Chapter 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 22 Resources Information Information Facilities Facilities and and Infrastructure Infrastructure Machinery Machinery and and Equipment Equipment Chapter 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 Competitors Competitors Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved External External Labor LaborPool Pool 11 33 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 Foreign Foreign sources sources for for needed needed supplies supplies Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 12 33 Competitive Bases Price Price Quality Quality Convenience Convenience Selection Selection Product Product Features Features Performance Performance Chapter Customer Customer Services Services Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 13 44 Indirectly Interactive Forces Economic Economic Legal Legal// Political Political Sociocultural Sociocultural Chapter Technological Technological Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Natural Natural 14 Economic Forces 44 Taxes Taxes Wages Wages Inflation Inflation Prices Prices Personal Personal Spending Spending Chapter Interest Interest Rates Rates Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved Business Business Spending Spending State Stateof of Economy Economy 15 44 Legal / Political Forces Legislative Legislative Statutes Statutes Court Court Decision Decision Precedents Precedents Regulations Regulations and and Rulings Rulings Chapter Agreements Agreements among among Governments/Companies Governments/Companies Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 16 44 Sociocultural Forces Chapter Sociocultural Sociocultural Forces Forces The influences and contributions from diverse groups outside an organization Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 17 44 Technological Forces Processes Processes Materials Materials Knowledge Knowledge Chapter Other Other Discoveries Discoveries Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 18 44 Natural Forces Climate Climate Weather Weather Geography Geography Chapter Geology Geology Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 19 55 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 Sometimes called environmental scanning Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 20 66 Influencing Environments Influencing Influencing Legislation Legislation Chapter Using Using the the power power of of the the media media Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 21 Chapter 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 Copyright ©2005 by South-Western, a division of Thomson Learning All rights reserved 22 ... Information Information Facilities Facilities and and Infrastructure Infrastructure Machinery Machinery and and Equipment Equipment Chapter Materials Materials and and Supplies Supplies Finances Finances... 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... Learning All rights reserved 10 33 Directly Interactive Forces Owners Owners Customers Customers Suppliers Suppliers and and Partners Partners Chapter Competitors Competitors Copyright ©2005 by South-Western,