1. FOM 1 Environment & Corporate Culture 1.External Environment General Technological Sociocultural Economic Legal -Political 2.Task Environment Customers Competitors Suppliers Labor Market 3.Internal Environment Production Technology Organization Structure Physical Facilities 4.Environmental Uncertainty Adapt Influence 5.Corporate Culture Communication Success

2. FOM 2 External Environment Def: All elements existing outside the boundary of the organization that have the potential to affect the organization General Environment: Influences the organization but not on a day-to- day basis. International Potential impact on new & existing markets Future competition (Indonesia aircraft repair) Country relations (Tariffs, Nationalism, Gov’t stability ) Technology ( Fads vs Innovations) E-commerce (Buying & Selling) PCs & Cell phones Fuels SocioCultural: Represents demographic characteristics as well as norms, customs & values of the general population Shift in average age of workforce Makeup of U.S. population Demographics of customer

3. FOM 3 External Environment (con’t) Economic General economic health of region and country the organization does business. Trend from rural to urban Urban to suburban Concentration of wealth Legal – Political Government regulations Workers Safety (OSHA) Labeling Export & Import restrictions Product safety NAFTA

4. FOM 4 Task Environment Def: Includes sectors that have a direct working relationship with the organization. ( More current issues) Customers (What currently is their needs) Pricing Packaging Availability Customer Service expected (return policy) Competitors What are the current direct competition What is the market share? How do they differ in product & distribution? Perceived value? Are there any substitutes? Price differential?

5. FOM 5 Task Environment (con’t) Suppliers Are they reliable? What is the current relationship? Based on price Strategic Partnerships Labor Market Level of training? How mobile? What skills are required and available?

6. FOM 6 Internal Environment Def: Structure and attitudes in place at organization to address the impact of the External & task environmental factors. Corporate Culture Flexible Entrepreneurial Does management “Walk the Talk”? Production Technology Age of equipment Flexibility of processes Organizational Structure Centralized vs Decentralized Vertical or Learning Physical Facilities Age of plant Capacity

7. FOM 7 Environmental Uncertainty There are many factors that are outside the direct control of an organization with the potential to change in a way that can be to the advantage or disadvantage of the organization. How does the organization minimize the negative impact while taking full advantage of the opportunities? Adapt to the change Boundary spanning roles Increased planning Forecasting Flexible structure Merger or joint venture Influence the level and timing of the change Advertising Political activity Trade association

8. FOM 8 Corporate Culture Represented by a set of key values, beliefs, understanding and norms shared by members of an organization. Typically generated from Top Management Successful if communicated by a strong focused leader. Means of Communication Symbols Stories Heroes Slogans Ceremonies Harvard Study: A strong corporate culture alone did not ensure success unless the culture encouraged healthy adaptation to the external environment. Focus on customers and internal people and processes that bring about useful change towards attainment of organizational goals.