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THE 
ENVIRONMENT 
OF 
MANAGEMENT
CORPORATE CULTURE 
AND THE ENVIRONMENT 
External 
environment
 Technological – tools that make business be more effective 
to increase the production 
 Natural – sensitivity towards earth’s diminishing natural 
resources and the environment impact of the products and 
business practices 
 Sociocultural – demographic characteristics like norm, 
customs, and values of general population 
 Economics – general economic health like consumer 
purchasing power, the unemployment and interest rates of 
particular country or region 
 Legal/politic –political activities designed to influence 
company behaviour affected by government regulation 
 International - huge competitive in dealing with others 
countries legal, political, sociocultural and economic factors 
General environment
 Customers – people and organizations in the 
environment that acquire goods or services 
from that particular organization. 
 Competitors – other organizations in the 
same industry that provide goods or services 
to the same set of consumers 
 Suppliers – provide the raw materials to the 
organization use to produce its product 
 Labour market – people who can be hired to 
work for the organization 
Task environment
CORPORATE CULTURE 
AND THE ENVIRONMENT 
Internal environment
 Symbols – object, act, or event that conveys the 
meaning to others and interaction with the 
environment 
 Heroes – role model for employees to follow and 
attributes of a strong culture 
 Stories – symbolized the firm’s vision and value, 
make employees personalized and absorb it. 
 Slogans – sentence that succinctly express a key 
corporate value and reflected the organization’s 
image 
 Ceremonies – activity at a special event that can 
benefits and giving appreciation to the 
employees
CORPORATE CULTURE 
AND THE ENVIRONMENT 
types of culture
 Adaptability culture – manager requires fast response 
and high-risk decision making by encourage and 
rewarding creativity, experimentation and risk-taking 
 Achievement culture – values of competitiveness, 
aggressiveness, personal initiative, and willingness to 
work long and hard to achieve results 
 Involvement culture – acknowledge employee needs, 
the organization can create caring and family-like 
environment 
 Consistency culture – following the rules, giving 
period to complete a certain task will drive workers to 
finish on time and on budget 
Type of culture
MANAGING IN A 
GLOBAL ENVIRONMENT 
borderless world
 Domestic stage – limited market potential only at 
home country, with all production and marketing 
facilities located at home 
 International stage – product design, marketing, 
advertising are adapted to the specific needs of 
each country, requires a high level of sensitivity 
to local values and interests 
 Multinational stage – delivering a similar product 
to multiples country. The marketing and 
production facilities located in many countries. 
 Global – make sales and acquiring resources in 
whatever country offers the best opportunities 
and lowest costs 
Borderless world
MANAGING IN A 
GLOBAL ENVIRONMENT 
economic environment
 Economic environment 
 Resource and product markets 
 Economic interdependence
MANAGING IN A GLOBAL 
ENVIRONMENT 
sociocultural environment
 Social value 
 Communication differences 
 Other culture characteristics 
 Developing culture intelligence
ETHICS AND SOCIAL 
RESPONSIBILITY 
Definition
 - Ethic is the code of moral principles and 
values that governs the behaviours of a person 
or group with respect to what is right or wrong. 
An ethic issue is present in a situation when the 
actions of a person or organizations may harm or 
benefit others. 
 - Managers are the role models. The most 
important ways mangers create ethical and 
socially responsible organizations is by practicing 
ethical leadership. However, unethical managers 
seek to serve their own needs and interests at 
the expense of stockholders. 
ethics and social responsibility
ETHICS AND SOCIAL 
RESPONSIBILITY 
ethical decision making
 Utilitarian approach – produce the greatest good 
for the greatest number 
 Individualism approach – promote the 
individual’s best long-term interests 
 Moral right approach – avoid to interfering 
other’s privacy 
 Justice approach – decisions must base on 
standard equity, fairness and impartially 
 Virtue ethics approach – develops good character 
traits leading to be a virtuous person 
 Practical approach – right or good and based 
decision on prevailing standards of the large 
society 
ethical decision making
SMALL BUSINESS 
START-UPS 
definition
 Small businesses are determined as one 
that is independently owned and 
operated, is organized for profit and is not 
dominant in its field of operation. 
 The small businesses generally proceed 
through five stages of growth which are 
start-up, survival, success, take off and 
resources maturity 
definition
SMALL BUSINESS 
START-UPS 
launching an 
entrepreneurial start-up
 • Starting with an idea 
 • Writing the business plan 
 • Choosing a legal structure 
 • Arranging financing 
 • Tactics for becoming a business owner 
 • Starting online business 
launching an entrepreneurial 
start-up
SMALL BUSINESS START-UPS 
managing a growing business
 Stage of growth – start-up, survival, 
success, take off, resources maturity 
 Planning – define goal and decide on the 
task and use the of resources needed 
 Organizing – separate tasks according the 
departments 
 Leading – motivate others to perform well 
 Controlling – implement structured control 
system, control the limited resources 
managing a growing business

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The Environment of Management

  • 1. THE ENVIRONMENT OF MANAGEMENT
  • 2. CORPORATE CULTURE AND THE ENVIRONMENT External environment
  • 3.  Technological – tools that make business be more effective to increase the production  Natural – sensitivity towards earth’s diminishing natural resources and the environment impact of the products and business practices  Sociocultural – demographic characteristics like norm, customs, and values of general population  Economics – general economic health like consumer purchasing power, the unemployment and interest rates of particular country or region  Legal/politic –political activities designed to influence company behaviour affected by government regulation  International - huge competitive in dealing with others countries legal, political, sociocultural and economic factors General environment
  • 4.  Customers – people and organizations in the environment that acquire goods or services from that particular organization.  Competitors – other organizations in the same industry that provide goods or services to the same set of consumers  Suppliers – provide the raw materials to the organization use to produce its product  Labour market – people who can be hired to work for the organization Task environment
  • 5. CORPORATE CULTURE AND THE ENVIRONMENT Internal environment
  • 6.  Symbols – object, act, or event that conveys the meaning to others and interaction with the environment  Heroes – role model for employees to follow and attributes of a strong culture  Stories – symbolized the firm’s vision and value, make employees personalized and absorb it.  Slogans – sentence that succinctly express a key corporate value and reflected the organization’s image  Ceremonies – activity at a special event that can benefits and giving appreciation to the employees
  • 7. CORPORATE CULTURE AND THE ENVIRONMENT types of culture
  • 8.  Adaptability culture – manager requires fast response and high-risk decision making by encourage and rewarding creativity, experimentation and risk-taking  Achievement culture – values of competitiveness, aggressiveness, personal initiative, and willingness to work long and hard to achieve results  Involvement culture – acknowledge employee needs, the organization can create caring and family-like environment  Consistency culture – following the rules, giving period to complete a certain task will drive workers to finish on time and on budget Type of culture
  • 9. MANAGING IN A GLOBAL ENVIRONMENT borderless world
  • 10.  Domestic stage – limited market potential only at home country, with all production and marketing facilities located at home  International stage – product design, marketing, advertising are adapted to the specific needs of each country, requires a high level of sensitivity to local values and interests  Multinational stage – delivering a similar product to multiples country. The marketing and production facilities located in many countries.  Global – make sales and acquiring resources in whatever country offers the best opportunities and lowest costs Borderless world
  • 11. MANAGING IN A GLOBAL ENVIRONMENT economic environment
  • 12.  Economic environment  Resource and product markets  Economic interdependence
  • 13. MANAGING IN A GLOBAL ENVIRONMENT sociocultural environment
  • 14.  Social value  Communication differences  Other culture characteristics  Developing culture intelligence
  • 15. ETHICS AND SOCIAL RESPONSIBILITY Definition
  • 16.  - Ethic is the code of moral principles and values that governs the behaviours of a person or group with respect to what is right or wrong. An ethic issue is present in a situation when the actions of a person or organizations may harm or benefit others.  - Managers are the role models. The most important ways mangers create ethical and socially responsible organizations is by practicing ethical leadership. However, unethical managers seek to serve their own needs and interests at the expense of stockholders. ethics and social responsibility
  • 17. ETHICS AND SOCIAL RESPONSIBILITY ethical decision making
  • 18.  Utilitarian approach – produce the greatest good for the greatest number  Individualism approach – promote the individual’s best long-term interests  Moral right approach – avoid to interfering other’s privacy  Justice approach – decisions must base on standard equity, fairness and impartially  Virtue ethics approach – develops good character traits leading to be a virtuous person  Practical approach – right or good and based decision on prevailing standards of the large society ethical decision making
  • 20.  Small businesses are determined as one that is independently owned and operated, is organized for profit and is not dominant in its field of operation.  The small businesses generally proceed through five stages of growth which are start-up, survival, success, take off and resources maturity definition
  • 21. SMALL BUSINESS START-UPS launching an entrepreneurial start-up
  • 22.  • Starting with an idea  • Writing the business plan  • Choosing a legal structure  • Arranging financing  • Tactics for becoming a business owner  • Starting online business launching an entrepreneurial start-up
  • 23. SMALL BUSINESS START-UPS managing a growing business
  • 24.  Stage of growth – start-up, survival, success, take off, resources maturity  Planning – define goal and decide on the task and use the of resources needed  Organizing – separate tasks according the departments  Leading – motivate others to perform well  Controlling – implement structured control system, control the limited resources managing a growing business