The External and Internal
Key Student Questions
Key Terms Presented in This Chapter
Manager’s Hot Seat
Test Your Knowledge
Expanded PowerPoint Slide Show
Expanded PowerPoint Slide Show
Describe how environmental forces influence organizations and how organizations can influence their environments. 2
Distinguish between the macroenvironment and the competitive environment.
Explain why managers and organizations should pay attention to economic and social developments.
Identify elements of the competitive environment.
Summarize how organizations respond to environmental uncertainty.
Define elements of an organization’s culture.
Discuss how an organization’s culture and climate affect its response to its external environment.
The two questions that come up most often for this chapter are:
“Can you explain the difference between the macroenvironment
and the task environment?” (Or request to explain a particular
element of either environment.)
“As a manager, what should I do to respond to a changing environment?”
Fortunately, the text has tools to help you deal with both of these questions more effectively.
The first question is best addressed with examples, and students often find it useful to go through an example or two for a specific company. Start by discussing the high tech industry, using the information in the text and the “Management Connection” section called “Apple’s Rocky Relationships.” Next, ask students to name a company with which they are familiar, and have them identify examples of each of the different environmental factors for that organization. If your students can’t think of an organization, try using something with which they are likely to be familiar, such as Kaiser Permanente (a large national HMO.) A completed example appears below in the instructions for Experiential Exercise 2.1, “External Environment Analysis”.
The second question is best addressed by having students work together to complete the concluding case study “Wild Water Gets Soaked.” The brainstorming activity that students complete for the third discussion question on the case also serves as an excellent introduction to Chapter 3 - Decision Making.
“Now, create a plan for Wild Water. In your plan, describe what changes the organization needs to make to its culture to meet the upcoming challenges in the external environment. Then describe steps that Wild Water can take to compete successfully against the new amusement park. How can the Salernos keep their loyal customers happy while attracting new ones?”
Can Mark Zuckerberg Steer Facebook through a Turbulent Environment?
One of the most dramatic business stories of the past decade has been how Mark Zuckerberg created a social-networking website that helped transform how people use the Internet. Facebook, along with other popular social-media sites, converted consumers of media content into creators of that content, and it vastly widened the scope of what information people share about themselves.
Some observers expected that Facebook would continue to be primarily a force that changes the online environment and social communities. However, other signs point to the possibility that change is beginning to outpace the company. Today Facebook’s managers are trying to keep up with the race to mobile devices even as Facebook users are looking around for the latest hot new thing to do online....
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