Download - The Nature of Organizations
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The Nature of Organizations
Lecture #2
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Ripple Effects Interconnectedness between
organizations
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Sears Roebuck example 1993:
Sears decided to eliminate catalog sales
Ripple effects of that decision
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Ripple Effects from Sears Company that photographed home
furnishings for Sears lost sales of $400k/yr
Company that provided flowers for the photography company lost sales of $8k/yr
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Ripple Effects from Sears The store that sold the film lost
sales of $10k/yr
The company that processed the film lost sales of $16k/yr
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Ripple Effects of Sears The company that built the sets for
the photos lost sales of $25k/yr
The company that printed the catalogs eliminated 800 jobs
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Ripple Effects of Sears The U.S. Postal Service estimated
it lost $90 - $100 million/yr in revenues from delivering the catalogs
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Environmental Awareness Political
Economic
Social
Technological
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Political Environment Domestic Government
Foreign Government
Legal Environment
Special Interest Groups
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Economic Environment Customers
Suppliers
Competitors
Investors
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Social Environment Demographics
Culture
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Demographics Which state would be a good
choice to test-market products for retired people?
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Venn Diagram: Music Today
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Venn Diagram: NKOTB
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Concert Revenues: 1989 Rolling Stones: $44 million
NKOTB: $17 million
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Concert Revenues: 1990 Rolling Stones: $44 million
NKOTB: $
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Back to P.E.S.T.
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Technological Environment Technology Transfer
Lasers for eye surgery, dental work
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Technology Transfer CDs play for approximately 75
minutes
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Technology Transfer With blue lasers, CDs will play 5
hours
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External Environments Political
Economic
Social
Technological
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Internal Resources Financial
Physical
Human
Technological and System
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Financial Resources Cash
Stocks
Bonds
Net Income
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Physical Resources Plant facilities
Equipment
Raw Materials
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Human Resources Specialized Personnel
Managerial Personnel
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Human Resources Specialized Personnel
Managerial Personnel
Sometimes dependent on demographics
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Technological and System Resources
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Technological and System Resources
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Technological and System Resources