Management 11e John Schermerhorn

1. Management11e John Schermerhorn Chapter 4 Environment, Sustainability and Innovation

2. Planning Ahead — Chapter 4 Study Questions • What is the external environment of organizations? • What are key issues in organization-environment relationships? • What are the emerging challenges of sustainability and the environment? • How do organizations accomplish innovation?

3. 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:

4. Figure 4.1 Starbucks general environment

5. 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:

6. 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 organization’s resource suppliers

7. Figure 4.2 Multiple stakeholders in the environment of an organization

8. 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

9. 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

10. 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

11. Figure 4.3 Dimensions of uncertainty

12. Study Question 2: What are key issues in organization-environment relationships? • Organizational Effectiveness • sustainable high performance in using resources to accomplish mission and objectives

13. 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 P’s of organizational performance

14. 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

15. 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

16. 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

17. 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

18. Study Question 4: How do organizations accomplish innovation? • The innovation process Reverse innovation – innovation can come from any level in the organization or location

19. 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 • 3M’s process to develop Post-It Notes is a good example

20. Study Question 4: How do organizations accomplish innovation? Internal organizational sensitivity External environment and market sensitivity Example of commercializinginnovation process

21. Study Question 4: How do organizations accomplish innovation? • Characteristics of innovative organizations • Strategy and culture • Structures • Systems • Staffing and management

22. Chapter 4 Case • Global Green USA: Greener cities for a cooler planet