Chapter 2

Question 1

What is the external environment?

Answer 1

• includes all elements existing outside the boundary of the org that have the potential to affect it
• competitors, resources, technology and economic condition

Question 2

What are the two types of external environments?

Answer 2

Task - customers, competitors, suppliers, labor market
General - Technological, natural, sociocultural, economic, legal/political, international

(task affects more basic operations and performance)
(generally affects organizations indirectly)

Question 3

What is the internal environment?

Answer 3

• includes the elements within the organization’s boundaries
• employees, management, corporate culture

Question 4

What does uncertainty mean?

Answer 4

• managers do not have sufficient information about environmental factors to predict environmental needs and changes
• external factors change = high uncertainty

Question 5

What is boundary spanning?

Answer 5

• links & coordinates the org. with key elements in the external environment
• ex: merging, joint ventures, synergy

Question 6

What are visible artifacts?

Answer 6

• a corporate culture that can be seen at the surface level
• dress code/uniform, office layout, symbols, slogans

Question 7

What are invisible artifacts?

Answer 7

• deeper values and shared understandings held by the org. members you can’t see at surface level
• people caring for one each another like a “family” or expressed values

Question 8

What is culture?

Answer 8

-the set of key values, beliefs, understandings, and norms shared by members of an organization.

Question 9

What is corporate culture?

Answer 9

• important for a competitive advantage
• Set of beliefs and values
• how they treat their customers and employees

Question 10

What are the four types of corporate culture?

Answer 10

Adaptability culture - fast responses & high-risk taking
Achievement culture - competitiveness, hard work & getting results
Involvement culture - focus on employees to adapt and cooperating with changes
Consistency culture - following rules & being rational