1. Copyright © by Houghton Mifflin Company. All rights reserved. 3–13–1 The Organization and Its Environments Owners Employees Physical environment Board of directors Culture Competitors International dimension Political- legal dimension Technological dimension Sociocultural dimension Economic dimension RegulatorsCustomers Strategic partners Suppliers Internal environment Task environment External environment General environment Figure 3.1

2. Copyright © by Houghton Mifflin Company. All rights reserved. 3–23–2 McDonald’s General Environment McDonald’s International Dimension Restaurants in 115 countries About two-thirds of sales from outside the United States Political-Legal Dimension Government food standards Local zoning climate General posture toward business regulation Technological Dimension Improved information technology More efficient operating systems Sociocultural Dimension Demographic shifts in number of single adults and dual-income families Growing concerns about health and nutrition Economic Dimension Strong economic growth Low unemploy- ment Low inflation Internal environment Task environment External environment General environment Figure 3.2

3. Copyright © by Houghton Mifflin Company. All rights reserved. 3–33–3 McDonald’s Task Environment McDonald’s Competitors Burger King Wendy’s Subway Dairy Queen Customers Individual consumers Institutional customers Suppliers Coca-Cola Wholesale food processors Packaging manufacturers Strategic Partners Wal-Mart Disney Foreign partners Regulators Food and Drug Administration Securities and Exchange Commission Environmental Protection Agency Internal environment Task environment Figure 3.3

4. Copyright © by Houghton Mifflin Company. All rights reserved. 3–43–4 Environmental Change, Complexity, and Uncertainty Simple Complex StableDynamic Moderate uncertainty Most uncertainty Moderate uncertainty Least uncertainty Degree of Change Degree of Homogeneity Source: Adapted from J.D. Thompson, Organizations in Action. Copyright © 1967 by McGraw-Hill. Reprinted by permission of McGraw-Hill Companies. Figure 3.4

5. Copyright © by Houghton Mifflin Company. All rights reserved. 3–53–5 How Organizations Respond to Their Environments General Environment Task Environment Information management Social responsibility Strategic response Mergers, takeovers, acquisitions, alliances Direct influence Organization design and flexibility The Organization Figure 3.5

6. Copyright © by Houghton Mifflin Company. All rights reserved. 3–63–6 A Model of Organizational Effectiveness (Systems resource approach) Acquiring the resources needed from the environment… making it easier to acquire future resources. (Combined approach) and satisfies the strategic constituents in the environment,... (Strategic constituencies approach) and combining them in an efficient and productive manner… (Internal processes approach) Organizational System Feedback (Goal approach) facilitates the attainment of organizational goals… Inputs Transformation Outputs 123 54 Figure 3.6

7. Copyright © by Houghton Mifflin Company. All rights reserved. 3–73–7 Examples of Admired and High-Performing Firms Table 3.1 Source: “America’s Most Admired Companies,” Fortune, February 21, 2000, pp. 108– 110; “The Business Week 50,” Business Week, March 27, 2000, pp. 123–125.