Katz Management SLU Chapter 4

Economic Condition
Overall health of economy in terms of financial markets, inflation, income levels, and job outlook (offshoring/reshoring)
Offshoring
outsourcing jobs to foreign locations
Reshoring
return of jobs foreign locations
Legal-Political Conditions
Laws and regulations, government policies, and the objectives of political parties, vary from country to country (internet censorship)
Internet Censorship
deliberate blockage of public access to information posted on the internet
Real GDP Growth map
growth is not in USA, in China and India and Africa
Sociocultural Conditions
diversity issues, access to technology, human rights, norms and customs (Generational cohorts)
Generational cohorts
People born within a few years of one another and who experience somewhat similar life events during their formative years
Technological Conditions
Social media and apps, brings both opportunities and problems
Natural Environment Conditions
nuclear plants, carbon neutral, free, sustainability (sustainable business)
Sustainable business
Meets both the needs of customers and protects the natural environment
Environmental Performance Index
Finland and Iceland on top with 90, US at #26 with score of 84
Overall Environments of Organizations
Economic, Legal-Political, Socio-Cultural, Technological, Natural Environment
Specific “task” environment
actual organizations, groups, and persons with whom an organization interacts and conducts business
Borders
The company that sold DVD’s that went out of business. Technology, environment, and the economy contributed to struggles.
Competitive Advantage
a core competency that clearly sets an organization apart from competitors and gives it an advantage over them in the marketplace. (Amazon over brick-and-mortar retailers)
Ways to achieve competitive advantage
costs, equality (Apple > PC), delivery (drones), flexibility
Innovation
process of putting new ideas into practice
Types of Innovation
Product (Apple) , Process (Ikea), Business Model (Netflix, RedBox)
Social Business Innovations
find ways to use business models to address important social problems (Grameen Bank’s microcredit and Consoler candles)
Gary Hamel’s Innovation Process
Imagining
Designing
Experimenting
Assessing
Scaling
Reverse Innovation
innovation can come from lower organizational levels and diverse locations (GE’s India’s Portable Electrocardiogram)
Disruptive Innovation
creates products/services that become so widely used that they largely replace prior practices and competitors (smartphone)
Sustainability
commitment to protect the rights of present and future generations as co-stakeholders of present-day natural resources
Sustainable Development
makes use of environmental resources to support societal needs today while also preserving and protecting them for future generations
Environmental Capital
Natural resources used to sustain life and produce goods and services for society (land, atmosphere, water, minerals)
Triple Bottom Line = 3 P’s of Organizational Performance
Profit/Planet/People
Sustainable Business
Operates in ways that meets the needs of consumers while protecting the environment
Sustainable/green innovations
Help reduce an organization’s negative impact; enhance positive impact on the natural environment
Human Sustainability
Concern for the effect of management practices on employee physical and psychological well-being