1. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-11-1 ©2013 John Wiley & Sons, Inc. All rights reserved. JOHN R. SCHERMERHORN, JR. MANAGEMENT 12 th Edition Chapter 4 Environment, Innovation, and Sustainability

2. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-2 Planning Ahead—Chapter 4 Study Questions 1.What is in the general or macro environment of organizations? 2.What are key elements and issues in the specific or task environment of organizations? 3.How do organizations accomplish innovation? 4.What are the emerging issues of sustainability and the environment?

3. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-3 Chapter 4 Learning Dashboard 1.The General or Macro Environment 1.Economic conditions 2.Legal-political conditions 3.Sociocultural conditions 4.Technological conditions 5.Natural environment conditions 2.The Specific or Task Environment 1.Stakeholders and value creation 2.Competitive advantage 3.Uncertainty, complexity, and change

4. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-4 Chapter 4 Learning Dashboard 3.Environmental and Innovation 1.Types of innovations 2.The innovation process 3.Disruptive innovation and technology 4.Environment and Sustainability 1.Sustainable development 2.Sustainable business 3.Human sustainability

5. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-5 Takeaway 1: The General or Macro Environment The general or macroenvironment — all of the background conditions in the external environment of the organization including: Economic health of the economy Legal-political philosophy/objectives of political party running the government Socio-cultural norms, customs, social values Technological development and availability of technology Natural environment nature and conditions of environment

6. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-6 Figure 4.1 Sample elements in the general environments of organizations

7. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-7 Takeaway 1: The General or Macro Environment Economic conditions – overall health of economy in terms of financial markets, inflation, income levels, and job outlook – Offshoring – outsourcing of jobs to foreign locations – Reshoring – return of jobs from foreign locations

8. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-8 Takeaway 1: The General or Macro Environment Legal-political conditions – laws and regulations, government policies, and the objectives of political parties – vary from one country to the next – Internet censorship - deliberate blockage of public access to information posted on the Internet

9. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-9 Takeaway 1: The General or Macro Environment Sociocultural conditions – diversity issues relating to educational opportunity, access to technology, housing/job options – norms, customs, demographics, and societal values – Generational cohorts -- people born within a few years of one another and who experience somewhat similar life events during their formative years

10. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-10 Takeaway 1: The General or Macro Environment Technological conditions – social media, features and “apps” on smart phones – brings both opportunities and problems – work-life balance

11. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-11 Takeaway 1: The General or Macro Environment Natural environment conditions – nuclear plant failure, oil spill, hurricane – “carbon neutral,” “green”, “sustainability” – Sustainable business – meets both the needs of customers and protects the natural environment

12. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-12 Takeaway 2: The Specific or Task Environment The specific (task) environment - actual organizations, groups, and persons with whom an organization interacts and conducts business Includes important stakeholders such as: CustomersSuppliersCompetitorsRegulatorsOwners

13. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-13 Takeaway 2: The Specific or Task Environment Multiple stakeholders in the environment of an organization

14. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-14 Takeaway 2: The Specific or Task Environment? 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: Costs, quality, delivery, flexibility

15. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-15 Takeaway 2: The Specific or Task Environment 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

16. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-16 Figure 4.2 Dimensions of uncertainty

17. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-17 Takeaway 3: Environment and Innovation Innovation - process of putting new ideas into practice Business innovations Product innovation Process innovation Business model innovation

18. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-18 Takeaway 3 : Environment and Innovation Social business innovations – find ways to use business models to address important social problems

19. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-19 Takeaway 3: Environment and Innovation The innovation process: Step 1: Imagining Step 2: Designing Step 3: Experimenting Step 4: Assessing Step 5: Scaling Reverse innovation – innovation can come from any level in the organization or location

20. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-20 Takeaway 3: Environment and Innovation Disruptive innovation – creates products/services that become so widely used that they largely replace prior practices and competitors

21. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-21 Takeaway 4: Environment and Sustainability Sustainability – commitment to protect the rights of present and future generations as co-stakeholders of present-day natural resources

22. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-22 Takeaway 4: Environment and Sustainability Sustainable development – makes use of environmental resources to support societal needs today while also preserving and protecting them for future generations

23. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-23 Takeaway 4: Environment and Sustainability Environmental capital – natural resources used to sustain life and produce goods and services for society – Land – atmosphere – Water – Minerals

24. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-24 Takeaway 4: Environment and Sustainability Triple Bottom Line: Three P’s of organizational performance Profit PeoplePlanet

25. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-25 Takeaway 4: Environment and Sustainability 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

26. Place Slide Title Text Here ©2013 John Wiley & Sons, Inc. All rights reserved. 4-26 Takeaway 4: Environment and Sustainability 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