Communication in Business in Changing External Environments

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1. Describe the three basic characteristics of changing external environments • Environmental change is the rate at which a company’s general and specific environments change. If the environment is stable, this means that the rate of change is slow; if the environment is dynamic, this means that the rate of change is fast. • Environmental complexity is the number of external factors in the environment that affect organizations. Complex environments have many environmental factors; simple environments have few. • Resource Scarcity is the degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources. 2. How do the characteristics of changing environments affect…show more content…
Competitors also influence how a company conducts business in a certain market segment, the company’s location, and the overall strategy a company pursues (attack or avoid competitors). • Suppliers influence the cost of the products and services a company offers and therefore affect the profitability of the firm. Suppliers (who they are and what they can provide) also affect the types of products that a company is able to put on the market. • Industry regulation has the potential to influence nearly every aspect of a company’s operations. For example, a caterer would need to comply with all the health codes and liquor laws that govern its industry. • Advocacy groups affect businesses through boycotts (or support). For example, advocacy groups were ultimately responsible for Home Depot changing its policy of buying lumber harvested from old-growth forests. 6. Describe the three-step process that managers use to make sense of their changing environments. • Environmental scanning: Managers search the environment for important events or issues that might affect an organization. This allows managers to stay up-to-date on important industry factors and to reduce uncertainty. • Interpreting environmental factors: Managers determine what these environmental events and issues mean to the organization. These events could present either threats to or opportunities for the organization. 7. How are organizational cultures created and

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