How Organizations and Environments Interact

Student Version

How Organizations and Environments Interact

Environments

Organization Environment Interface

Organizations

Change and Complexity

Competitive Forces

Turbulence

Information Management

Strategic Response

Mergers, Takeovers, Acquisitions, Alliances

Organization Design and Flexibility

Direct Influence

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2–2

2

Five-Forces Analysis (Porter)

Performance of organizations in an industry

Power of Buyers

Level of Rivalry

Power of Suppliers

Threat of New Entrants

Threat of Substitute Products

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2–3

3

Determinants of Individual Ethics

Family Influences

Situational Factors

Values and Morals

Experiences

Peer Influences

Individual Ethics

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2–4

4

Managerial Ethics

Employees

Organization

Conflicts of interest

Secrecy and

confidentiality

Honesty

Hiring and firing

Wages and working

conditions

Privacy and respect

Subject to ethical ambiguities

Advertising and promotions

Ordering and purchasing

Bargaining and negotiation

Financial disclosure

Shipping and solicitation

Other business relationships

Economic Agents

Customers

Competitors

Stockholders

Suppliers

Dealers

Unions

Areas of concern for managerial ethics:

How the firm treats the employee.

How the employee treats the firm.

How the firm treats other economic agents.

How the firm handles its financial reporting

© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2–5

5

Fostering Ethical Organization Behavior

Train Employees

Written Code of Ethics

Individual Issues: Behavior, Conscience, Privacy

Top Management Involvement

Managing Ethical Behavior

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2–6

6

Emerging Ethical Issues

Ethical Leadership (Integrity)

Ethics and Information Technology (Privacy)

Corporate Governance (Sarbanes-Oxley)

Ethical Issues in Organizations

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2–7

7

Social Responsibility

The Stakeholders

The General Social Welfare

The Environment

Social Responsibility of Organizations

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2–8

8

Approaches to Social Responsibility

Proactive Stance

Accommodative Stance

Defensive Stance

Obstructionist Stance

Highest Degree of Social Responsibility

Lowest Degree of Social Responsibility

© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2–9

9

How Business and Government Influence Each Other

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2–10

10

Managing Social Responsibility

Legal compliance

Ethical compliance

Philanthropic giving

Formal Organizational Dimensions

Organization leadership and culture

Whistle Blowing

Informal Organizational Dimensions

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2–11

11

Trends in International Business

Economic recovery from WWII

Decreasing isolation from competition

Increasing globalization of markets

International Business Trends

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2–12

12

International Business Activity

Types of International Business Activity

Importing

Exporting

Licensing

Direct Investment

Alliances and Joint Ventures

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2–13

13

The Context of International Management

International Management Functions

Political/Legal Environment

Government stability

Incentives for international trade

Controls on international trade

Economic communities

Economic Environment

Economic system

Natural resources

Infrastructure

Cultural Environment

Values, symbols, beliefs, and language

Individual differences across cultures

© 2016 Cengage Learning. All rights reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.

2–14

14

Quotas

Export restraint agreements

Tariffs

Controls on International Trade

International Trade Controls

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2–15

15

The Structure of the Global Economy

European Union (EU)

North American Free Trade Agreement (NAFTA)

Latin American Integration Association

Caribbean Common Market

Economic Communities

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2–16

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Determinants of Organization Culture

Organization founder

Symbolic stories and ceremonies

Corporate success

Shared experiences

Organization Culture

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2–17

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