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Introduction to management Chapter 3

Organizational environment

includes all elements existing outside the boundary of the organization that have the potential to affect the organization

Taks environment + general environment

Tasks =
- market scale

- affect organization directly

General =

- Country / society scale

- affects organization indirectly

Task environment

concist of four sectors that have direct relationship with the organization.
- Customers

- Competitors

- Suppliers

- Labor market

General environment

- technological dimension
- socio-cultural dimension

- economical dimension

- legal-political dimension

- international dimension

- natural dimension

Environment uncertainty

High uncertainty = when the external factors change rapidly, the organization experiences high uncertainty
Low uncertainty = when an organization deals with only a few external factors and these factors are relatively stable managers experience low uncertainty.

Stategic issue

An event or force that alters an organization's ability to achieve its goals

interorganizational partnerships

Reduce bounderies and increases collaboration with other organizations

Boundary-spanning roles

linked to and coordinate the organization with key elements in the external environment

merger

when two or more organizatiosn combine to become one

Joint venture

a strategic alliance or programmed by two or more organizations

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