The Nature of Organizations
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The Nature of Organizations Lecture #2
description
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. - PowerPoint PPT Presentation
Transcript of The Nature of Organizations
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
Environmental Awareness Political
Economic
Social
Technological
Political Environment Domestic Government
Foreign Government
Legal Environment
Special Interest Groups
Economic Environment Customers
Suppliers
Competitors
Investors
Social Environment Demographics
Culture
Demographics Which state would be a good
choice to test-market products for retired people?
Venn Diagram: Music Today
Venn Diagram: NKOTB
Concert Revenues: 1989 Rolling Stones: $44 million
NKOTB: $17 million
Concert Revenues: 1990 Rolling Stones: $44 million
NKOTB: $
Back to P.E.S.T.
Technological Environment Technology Transfer
Lasers for eye surgery, dental work
Technology Transfer CDs play for approximately 75
minutes
Technology Transfer With blue lasers, CDs will play 5
hours
External Environments Political
Economic
Social
Technological
Internal Resources Financial
Physical
Human
Technological and System
Financial Resources Cash
Stocks
Bonds
Net Income
Physical Resources Plant facilities
Equipment
Raw Materials
Human Resources Specialized Personnel
Managerial Personnel
Human Resources Specialized Personnel
Managerial Personnel
Sometimes dependent on demographics
Technological and System Resources
Technological and System Resources
Technological and System Resources
