The Nature of Organizations Lecture #2. Ripple Effects Interconnectedness between organizations.
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Transcript of The Nature of Organizations Lecture #2. Ripple Effects Interconnectedness between organizations.
Sears Roebuck example 1993:
Sears decided to eliminate catalog sales
Ripple effects of that decision
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
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
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
Ripple Effects of Sears The U.S. Postal Service estimated
it lost $90 - $100 million/yr in revenues from delivering the catalogs
Political Environment Domestic Government
Foreign Government
Legal Environment
Special Interest Groups