Management 11e John Schermerhorn

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Management 11e John Schermerhorn

• Chapter 4
• Environment, Sustainability and Innovation

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Planning Ahead Chapter 4 Study Questions

1. What is the external environment of
   organizations?
2. What are key issues in organization-environment
   relationships?
3. What are the emerging challenges of
   sustainability and the environment?
4. How do organizations accomplish innovation?

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Study Question 1 What is the external
environment of organizations?

• The general or macroenvironment all of the
  background conditions in the external environment
  of the organization including

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Figure 4.1 Starbucks general environment
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Study Question 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

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Study Question 2 What are key issues in
organization-environment relationships?

• 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 organizations resource suppliers

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Figure 4.2 Multiple stakeholders in the
environment of an organization
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Study Question 2 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
• Companies may achieve competitive advantage in
  many ways, including
• Products
• Pricing
• Customer service
• Cost efficiency
• Quality
• Knowledge

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Study Question 2 What are key issues in
organization-environment relationships?

• Customers want
• High quality
• Low price
• On-time delivery
• Great service
• Key customer service lessons
• Protect reputation for quality products
• Treat customers right

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Study Question 2 What are key issues in
organization-environment relationships?

• Environmental uncertainty
• a lack of complete information regarding what
  exists and what developments may occur in the
  external environment
• Two dimensions of environmental uncertainty
• Degree of complexity
• Rate of change

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Figure 4.3 Dimensions of uncertainty
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Study Question 2 What are key issues in
organization-environment relationships?

• Organizational Effectiveness
• sustainable high performance in using resources
  to accomplish mission and objectives

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Study Question 3 What are the emerging
challenges of sustainability and the environment?

• Sustainable development
• makes use of environmental resources to support
  societal needs today while also preserving and
  protecting them for future generations
• Three Ps of organizational performance

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Study Question 3 What are the emerging
challenges of sustainability and the environment?

• Environmental capital natural resources used to
  sustain life and produce goods and services for
  society
• Land
• Water
• Minerals
• Green management managing people and
  organizations in ways that preserve the natural
  environment
• Reducing energy consumption
• Minimizing environmental impact

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Study Question 3 What are the emerging
challenges of sustainability and the environment?

• Human sustainability concern for the effect of
  management practices on employee physical and
  psychological well-being
• Health and wellness programs
• Stress management
• Minimizing work-family conflict
• Control over work
• Fair wages and opportunities

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Study Question 4 How do organizations accomplish
innovation?

• Innovation - process of putting new ideas into
  practice
• Business innovations
• Product innovation
• Process innovation
• Business model innovation

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Study Question 4 How do organizations accomplish
innovation?

• Sustainable innovations reduce carbon
  footprints and environmental impacts of
  organizations, their practices and products
• Social business innovations find ways to use
  business models to address important social
  problems

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Study Question 4 How do organizations accomplish
innovation?

• The innovation process

Reverse innovation innovation can come from any
level in the organization or location
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Study Question 4 How do organizations accomplish
innovation?

• Commercializing Innovation - turning new ideas
  into products services or processes to increase
  profits through
• Greater sales
• Reduced costs
• 3Ms process to develop Post-It Notes is a good
  example

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Study Question 4 How do organizations accomplish
innovation?
External environment and market sensitivity
Example of commercializinginnovation process
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Study Question 4 How do organizations accomplish
innovation?

• Characteristics of innovative organizations
• Strategy and culture
• Structures
• Systems
• Staffing and management

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Chapter 4 Case

• Global Green USA Greener cities for a cooler
  planet