John Schermerhorn
Chapter 4
Environment, Innovation and Sustainability
Facilitated by Dr. Steven Tam
Fort Hays State University
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Study Questions
1. What is the external environment of organizations? 2. What are key issues in organizationenvironment relationships?
3. What are the emerging challenges of sustainability and the environment?
4. How do organizations accomplish innovation?
What is the external environment of organizations?
1
The general or macro-environment — all of the background conditions in the external environment of the organization including:
Economic
health of the economy
Sociocultural
norms, customs, social values
Legal-political
philosophy/objectives of political party running the government
Technological
development and availability of technology
Natural environment nature and conditions of environment
1
What is the external environment of organizations?
The specific (task) environment - actual organizations, groups, and persons with whom an organization interacts and conducts business
Includes important stakeholders such as:
Customers
Suppliers &
Distributors
Competitors
Regulators
(Labor
Unions)
Owners
(Investors) &
Employees
What are key issues in organization-environment relationships?
2
Customer relationship management establishes and maintains high standards of customer service in order to strategically build lasting relationships with and add value to customers
Supply chain management strategic management of all operations relating to an organization’s resource suppliers What are key issues in organization-environment relationships?
Competitive advantage a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace 2
What are key issues in organization-environment relationships?
Companies