Embed Size (px)
Citation preview
The
Dyn
amic
Env
ironm
ent
This
cha
pter
:
!Id
entif
ies
deep
his
toric
al fo
rces
that
cre
ate
chan
ge a
nd ri
sk in
the
busi
ness
env
ironm
ent.
!D
iscu
sses
key
dim
ensi
ons
of th
e bu
sine
ss
envi
ronm
ent,
desc
ribin
g m
ajor
tren
ds a
nd
chal
leng
es.
Cha
pter
2
McG
raw
-Hill
/Irw
inC
opyr
ight
©20
09 b
y Th
e M
cGra
w-H
ill C
ompa
nies
, Inc
. All
righ
ts re
serv
ed.
Roy
al D
utch
She
ll PL
CO
peni
ng C
ase
!Th
e w
orld
’s s
econ
d-la
rges
t priv
ate
ener
gy c
ompa
ny.
!H
as a
nnua
l cap
ital i
nves
tmen
ts o
f bet
wee
n $1
5-19
B, m
any
of
whi
ch h
ave
a ve
ry lo
ng-te
rm p
ersp
ectiv
e.!
In th
e 19
70’s
pio
neer
ed a
met
hod
of a
naly
zing
its
envi
ronm
ent u
sing
sce
nario
s to
cha
lleng
e m
anag
ers
to th
ink
in o
rigin
al w
ays.
!S
ucce
ss: p
repa
red
for t
he 1
973
OP
EC
oil
emba
rgo.
!C
urre
nt s
cena
rios
incl
ude
issu
es o
f tru
st a
nd s
ecur
ity:
!Lo
w tr
ust g
loba
lizat
ion
!O
pen
door
s!
“Fla
gs”
The
stor
y of
She
ll ill
ustra
tes
how
a c
ompa
ny c
an fi
nd a
uni
fyin
gst
rate
gic
dire
ctio
n an
d m
ake
bette
r pla
nnin
g de
cisi
ons
in a
tu
rbul
ent w
orld
.
2-3
Und
erly
ing
His
toric
al F
orce
s C
hang
ing
the
Bus
ines
s En
viro
nmen
t
!H
isto
rical
forc
e: A
nyth
ing
that
doe
s, o
r hel
ps to
do
, wor
k--w
here
wor
k is
the
pow
er to
cau
se
even
ts.
!N
ine
unde
rlyin
g hi
stor
ical
forc
es h
ave
caus
ed
chan
ges
in th
e bu
sine
ss e
nviro
nmen
t ove
r the
ye
ars.
2-4
Nin
e D
eep
His
toric
al F
orce
s C
hang
ing
the
Bus
ines
s En
viro
nmen
t
!In
dust
rial R
evol
utio
n!
Ineq
ualit
y!
Pop
ulat
ion
Gro
wth
!Te
chno
logy
!G
loba
lizat
ion
!N
atio
n-S
tate
s!
Dom
inan
t Ide
olog
ies
!G
reat
Lea
ders
hip
!C
hanc
e
The
Indu
stria
l Rev
olut
ion
!R
equi
rem
ents
for i
ndus
trial
gro
wth
:!
Suffi
cien
cyof
cap
ital,
labo
r, na
tura
l res
ourc
es
and
fuel
s!
Tran
spor
tatio
n!
Stro
ng m
arke
ts!
Idea
s an
d in
stitu
tions
to e
ffect
ivel
y co
mbi
ne a
ll of
thes
e re
quire
men
ts!
Indu
stria
l gro
wth
rem
akes
soc
ietie
s in
pos
itive
way
s, b
ut a
lso
gene
rate
s st
rain
sin
the
soci
al
fabr
ic.
!Th
e to
tal a
mou
nt o
f goo
ds a
nd s
ervi
ces
prod
uced
in
the
twen
tieth
cen
tury
exc
eede
dal
l tha
t pr
oduc
ed in
reco
rded
hum
an h
isto
ry.
2-5
Ineq
ualit
y!
The
basi
c po
litic
al c
onfli
ct in
eve
ry n
atio
n, a
nd
ofte
n be
twee
n na
tions
, is
the
anta
goni
smbe
twee
n ric
han
d po
or.
!Th
e in
dust
rial r
evol
utio
n ac
cele
rate
d th
e ac
cum
ulat
ion
of w
ealth
and
wid
ened
the
pers
iste
nt
prob
lem
of i
ts u
neve
ndi
strib
utio
n.!
Glo
bal i
ncom
e in
equa
lity
is m
easu
red
by th
e G
ini
inde
x.!
In 2
003,
the
inde
x w
as 6
7%, a
n ex
trem
e le
vel o
f in
equa
lity,
cau
sed
by th
e di
verg
ing
econ
omic
fo
rtune
of n
atio
ns.
!To
p 5%
rece
ive
33%
of a
ll in
com
e; b
otto
m 5
%
rece
ive
0.2%
of a
ll in
com
e.
2-6
Ineq
ualit
y (c
ontin
ued)
!E
cono
mic
gro
wth
doe
s no
t its
elf i
ncre
ase
inco
me
ineq
uity
with
in m
oder
nizi
ng n
atio
ns.
!To
day
abou
t 2.5
bill
ion
peop
le (4
0% o
f the
wor
ld
popu
latio
n) li
ve in
pov
erty
(< $
2.00
a d
ay in
com
e).
!In
182
0, 9
4% o
f the
wor
ld p
opul
atio
n liv
ed in
po
verty
.!
If w
orld
dis
tribu
tion
of in
com
e ha
d no
t bec
ome
mor
e un
equa
l afte
r 182
0, e
cono
mic
gro
wth
wou
ld
have
redu
ced
the
num
ber o
f peo
ple
livin
g in
po
verty
toda
y by
80%
.!
If ca
pita
lism
is h
arne
ssed
to c
reat
e ec
onom
ic
grow
th, t
he p
oor w
ill b
enef
it.
2-7
Wor
ld P
over
ty a
nd In
com
e In
equa
lity
Sinc
e 18
20
2-8
Popu
latio
n G
row
th!
The
basi
c po
pula
tion
trend
thro
ugho
ut h
uman
his
tory
is
upw
ard.
!A
ccel
erat
ed g
row
th a
fter 1
825
due
to:
!A
dvan
ces
in w
ater
san
itatio
n an
d m
edic
ine,
whi
ch
redu
ced
the
num
ber o
f dea
ths
from
infe
ctio
us d
isea
se!
Mec
hani
zed
farm
ing,
whi
ch e
xpan
ded
the
food
sup
ply
!R
apid
gro
wth
now
dec
linin
g du
e to
dec
linin
g fe
rtilit
y.!
Impl
icat
ions
of c
urre
nt p
opul
atio
n tre
nds:
!Th
e w
ealth
gap
bet
wee
n hi
gh-a
nd lo
w-in
com
e co
untri
es w
ill w
iden
.!
Gro
wth
will
con
tinue
to s
train
the
earth
’s e
cosy
stem
s.!
The
Wes
t is
in d
emog
raph
ic d
eclin
e co
mpa
red
with
ot
her p
eopl
es.
2-9
Tech
nolo
gy!
Thro
ugho
ut h
isto
ry, n
ew te
chno
logi
es a
nd
devi
ces
have
fuel
ed c
omm
erce
and
re
shap
ed s
ocie
ties.
For
exa
mpl
e:!
The
prin
ting
pres
s!
The
stea
m e
ngin
e!
The
auto
mob
ile!
The
com
pute
r
2-10
Tech
nolo
gy
!N
ew te
chno
logi
es:
!Fo
ster
the
prod
uctiv
ity g
ains
that
sus
tain
lo
ng-te
rm e
cono
mic
pro
gres
s!
Pro
mot
e hu
man
wel
fare
!C
an a
gita
te s
ocie
ties
Fear
of T
echn
olog
y—Th
e Lu
ddite
s
!Th
e Lu
ddite
s w
ere
a so
cial
mov
emen
t of B
ritis
h te
xtile
wor
kers
in th
e ea
rly 1
9thC
entu
ry w
ho
prot
este
d—of
ten
by d
estro
ying
text
ile
mac
hine
s—ag
ains
t the
cha
nges
pro
duce
d by
th
e In
dust
rial R
evol
utio
n, w
hich
they
felt
thre
aten
ed th
eir l
ivel
ihoo
d.
!Th
e te
rm L
uddi
te is
now
ofte
n us
ed to
des
crib
e an
yone
opp
osed
to te
chno
logi
cal p
rogr
ess
and
tech
nolo
gica
l cha
nge.
!Th
e Lu
ddite
mov
emen
t, w
hich
beg
an in
181
1,
was
nam
ed a
fter a
myt
hica
l lea
der,
Ned
Lud
d.
Sour
ce:
ww
w.e
n.w
ikip
edia
.org
Fear
of T
echn
olog
y:
Folk
Mus
ic a
nd th
e A
utom
atio
n Th
eme
•A
llan
Sher
man
, an
Am
eric
an
mus
icia
n, p
arod
ist,
and
satir
ist,
had
a so
ng a
bout
en
croa
chin
g au
tom
atio
n in
the
wor
kfor
ce ("
Aut
omat
ion"
set
to th
e tu
ne o
f "Fa
scin
atio
n").
•In
the
1960
’s, o
ther
folk
m
usic
ians
wro
te a
nd sa
ng
song
s abo
ut th
e en
croa
chm
ent
of m
achi
nes o
n th
e w
ay o
f life
in
Am
eric
a.
Mod
ern
Phob
ias
From
The
Pho
bia
List
(http
://ph
obia
list.c
om/):
Tapi
noph
obia
-Fea
r of b
eing
con
tagi
ous.
Taur
opho
bia-
Fear
of b
ulls
.Te
chno
phob
ia-F
ear o
f tec
hnol
ogy.
Tele
opho
bia-
1) F
ear o
f def
inite
pla
ns. 2
) Fea
r of
relig
ious
cer
emon
y.Te
leph
onop
hobi
a-Fe
ar o
f tel
epho
nes.
Def
initi
on o
f Tec
hnop
hobi
a: F
ear o
f or a
vers
ion
to te
chno
logy
, esp
ecia
lly c
ompu
ters
and
hig
h te
chno
logy
.(A
mer
ican
Her
itage
Dic
tiona
ry)
Glo
baliz
atio
n!
In th
e ec
onom
ic re
alm
, glo
baliz
atio
n re
fers
to th
e de
velo
pmen
t of a
n in
crea
sing
ly in
tegr
ated
syst
em
base
d on
free
mar
kets
in w
hich
nat
ions
are
ope
nto
fore
ign
trade
and
inve
stm
ent.
!C
onse
quen
ces
of g
loba
lizat
ion:
!In
crea
sed
econ
omic
act
ivity
!C
hang
ed c
ultu
res
!G
loba
lizat
ion
has
been
acc
eler
ated
by n
ew
tech
nolo
gies
, and
som
etim
es s
low
edby
nat
iona
l riv
alrie
san
d w
ars.
!Tr
ansn
atio
nal c
orpo
ratio
ns a
re th
e ce
ntra
l for
ces
of
curr
ent e
cono
mic
glo
baliz
atio
n.
2-11
Nat
ion-
Stat
es!
A n
atio
n-st
ate
is a
n ac
tor f
orm
ed o
f thr
ee e
lem
ents
: a
rulin
g au
thor
ity, c
itize
ns, a
nd a
terr
itory
with
fixe
d bo
rder
s.!
They
Aro
se o
ut o
f the
wre
ckag
e of
the
Rom
an
Em
pire
.!
In th
e pa
st, n
atio
ns in
crea
sed
thei
r pow
er b
y se
izin
g te
rrito
ryfro
m o
ther
nat
ions
.!
Toda
y, n
atio
ns u
se tr
ade
to in
crea
se th
eir p
ower
.!
Trad
e th
roug
h w
orld
mar
kets
is a
new
sou
rce
of
pow
er, b
ut it
als
o lim
its th
e ab
ility
of r
egim
es to
co
ntro
l the
ir ec
onom
ies.
!O
ther
forc
es s
uch
as e
pide
mic
s, c
limat
e ch
ange
, te
rror
ism
and
inte
rnat
iona
l nor
ms
also
lim
it a
natio
n-st
ate’
s au
tono
my.
2-12
Dom
inan
t Ide
olog
ies
!A
n id
eolo
gy is
a s
et o
f rei
nfor
cing
bel
iefs
and
valu
es th
at
cons
truct
s a
wor
ld v
iew
.!
The
indu
stria
l rev
olut
ion
was
faci
litat
ed b
y se
vera
l ide
olog
ies:
!C
apita
lism
!C
onst
itutio
nal d
emoc
racy
–pr
otec
tion
of in
divi
dual
s’rig
hts.
!Pr
ogre
ss–
the
idea
that
hum
anity
was
in u
pwar
d m
otio
n to
war
d m
ater
ial b
ette
rmen
t.!
Dar
win
ism
–co
nsta
nt im
prov
emen
t cha
ract
eriz
ed th
e bi
olog
ical
wor
ld.
!So
cial
Dar
win
ism
–ev
olut
iona
ry c
ompe
titio
n in
hum
an
soci
ety
wee
ds o
ut th
e un
fit a
nd a
dvan
ces
hum
anity
.!
Prot
esta
nt e
thic
–ha
rd w
ork,
sav
ing,
thrif
t and
hon
esty
le
ad to
sal
vatio
n.!
Man
y do
ctrin
es h
ave
peris
hed
as a
resu
lt of
glo
baliz
atio
n.!
The
capi
talis
m id
eolo
gy a
ccel
erat
ed in
the
20th
cent
ury
due
to
risin
g lit
erac
y an
d in
nova
tions
that
spr
ead
info
rmat
ion.
2-13
Gre
at L
eade
rshi
p
!Le
ader
s ha
ve b
roug
ht b
oth
bene
ficia
l an
d di
sast
rous
cha
nges
to s
ocie
ties
and
busi
ness
es.
!Tw
o vi
ews
of h
isto
ric le
ader
s:!
Lead
ers
sim
ply
ride
the
wav
e of
his
tory
!Le
ader
s th
emse
lves
cha
nge
hist
ory
!E
xam
ples
of g
reat
lead
ers
in g
over
nmen
t, re
ligio
n, b
usin
ess?
2-14
Cha
nce
!S
ome
chan
ges
in th
e bu
sine
ss
envi
ronm
ent m
ay b
e be
st e
xpla
ined
as
the
prod
uct o
f unk
now
nan
d un
pred
icta
ble
caus
es.
!M
achi
avel
li ob
serv
ed th
at fo
rtun
ede
term
ines
abo
ut h
alf t
he c
ours
e of
hu
man
eve
nts
and
hum
an b
eing
sth
e ot
her h
alf.
2-15
Seve
n K
ey E
nviro
nmen
ts
of B
usin
ess
2-16
The
Econ
omic
Env
ironm
ent
!O
vera
ll ec
onom
ic a
ctiv
ity!
Wag
es
!C
omm
odity
pric
es!
Com
petit
or’s
act
ions
!In
tere
st ra
tes
!Te
chno
logy
cha
nge
!C
urre
ncy
fluct
uatio
ns!
Gov
ernm
ent p
olic
ies
!Th
e ec
onom
ic e
nviro
nmen
t con
sist
s of
forc
es
that
influ
ence
mar
ket o
pera
tions
, inc
ludi
ng:
!Tw
o ba
sic
subt
rend
s un
derly
ing
econ
omic
gr
owth
:!
Ris
ing
trade
!M
ajor
exp
ansi
on o
f for
eign
dire
ct in
vest
men
t by
tran
snat
iona
l cor
pora
tions
2-17
The
Tech
nolo
gica
l En
viro
nmen
t!
New
tech
nolo
gies
cre
ate
both
thre
ats
and
oppo
rtuni
ties.
!Te
chno
logi
es s
uch
as n
anot
echn
olog
y, o
pen
sour
cing
, and
col
labo
rativ
e co
mpu
ting
will
hav
e a
sign
ifica
nt im
pact
on b
usin
ess.
!N
ew te
chno
logi
es h
ave
unfo
rese
en
cons
eque
nces
for s
ocie
ty w
hen
they
are
put
into
w
ides
prea
d us
e fo
r com
mer
cial
gai
n.!
Bus
ines
ses
mus
t car
eful
ly w
eigh
not
onl
y th
e st
rate
gic
impa
ctof
tech
nolo
gies
on
thei
r bu
sine
ss m
odel
s, b
ut a
lso
the
dang
ers
they
may
im
pose
on
peop
le.
2-18
The
Cul
tura
l Env
ironm
ent
!C
ultu
re–
a sy
stem
of s
hare
d kn
owle
dge,
val
ues,
no
rms,
cus
tom
s, a
nd ri
tual
s ac
quire
d by
soc
ial l
earn
ing.
!Th
e en
viro
nmen
t of a
tran
snat
iona
l cor
pora
tion
incl
udes
a
varie
tyof
cul
ture
s.!
This
var
iatio
n ca
uses
con
flict
s of
bus
ines
s cu
stom
s.!
Ther
e is
a fu
ndam
enta
l div
ide
betw
een
the
cultu
re o
f W
este
rn e
cono
mic
dev
elop
men
t and
the
rest
of t
he
wor
ld’s
cul
tura
l gro
upin
gs.
!Th
e ris
e of
pos
tmod
ern
valu
esha
s un
iform
ly s
hifte
d th
e so
cial
, pol
itica
l, ec
onom
ic, a
nd s
exua
l nor
ms
of
wea
lthy
coun
tries
.!
Pos
tmod
ern
norm
s ar
e a
stro
ng in
fluen
ce in
the
oper
atin
g en
viro
nmen
ts o
f mul
tinat
iona
l cor
pora
tions
.
2-19
The
Gov
ernm
ent
Envi
ronm
ent
!Th
ere
are
curr
ently
two
long
-term
glo
bal t
rend
s in
th
e go
vern
men
t env
ironm
ent o
f maj
or im
porta
nce
to b
usin
ess:
!G
over
nmen
t act
ivity
has
gre
atly
exp
ande
d!
Larg
er s
ocia
l wel
fare
role
s!
Exp
ande
d re
gula
tion
of d
omes
tic in
dust
ries
!M
ore
gove
rnm
ents
are
bec
omin
g op
en a
nd
dem
ocra
tic!
Gov
ernm
ents
incr
easi
ngly
resp
ond
to p
ublic
dem
ands
fo
r cor
pora
te s
ocia
l per
form
ance
!Th
ese
dem
ands
refle
ct p
ostm
oder
n va
les
prom
otin
g hu
man
righ
ts, t
he e
nviro
nmen
t, ae
sthe
tics,
and
eth
ics
2-20
The
Lega
l Env
ironm
ent
!Th
e le
gal e
nviro
nmen
t con
sist
s of
legi
slat
ion,
re
gula
tion,
and
litig
atio
n.!
Five
end
urin
g tre
nds:
!La
ws
and
regu
latio
ns h
ave
stea
dily
gro
wn
in
num
bera
nd c
ompl
exity
.!
Cor
pora
tions
hav
e ex
pand
ing
dutie
s to
pro
tect
right
s of
sta
keho
lder
s.!
Glo
baliz
atio
n ha
s in
crea
sed
the
com
plex
ityof
th
e le
gal e
nviro
nmen
t and
exp
ande
d th
e ap
plic
atio
n of
vol
unta
ryco
des
of c
ondu
ct.
!E
thic
al b
ehav
ior a
nd c
orpo
rate
soc
ial
resp
onsi
bilit
y of
ten
beco
me
codi
fied
in la
ws.
!Th
e la
w is
con
stan
tly e
volv
ing.
2-21
The
Nat
ural
Env
ironm
ent
!E
cono
mic
act
ivity
is a
geo
phys
ical
forc
ew
ith p
ower
to
cha
nge
the
natu
ral e
nviro
nmen
t.!
Eco
nom
ic p
rodu
ctiv
ity in
the
20th
cent
ury:
!D
eple
ted
min
eral
reso
urce
s!
Red
uced
fore
st c
over
!K
illed
spe
cies
!R
elea
sed
mol
ecul
es n
ot fo
und
in n
atur
e!
Unb
alan
ced
the
nitro
gen
cycl
e!
Pos
sibl
y tri
gger
ed c
limat
e ch
ange
!Th
e hu
man
eco
logi
cal f
ootp
rint m
oved
bey
ond
the
earth
’s c
arry
ing
capa
city
in th
e 19
80s
and
is n
ow
unsu
stai
nabl
e .!
Man
ager
s m
ust a
dapt
to c
hang
ed th
inki
ng, t
owar
d pr
eser
vatio
n of
nat
ure.
2-22
The
Inte
rnal
Env
ironm
ent
!In
a c
orpo
ratio
n, th
e in
tern
al e
nviro
nmen
t co
nsis
ts o
f fou
r gro
ups:
em
ploy
ees,
m
anag
ers,
the
boar
d of
dire
ctor
s, a
nd
owne
rs.
!E
ach
of th
ese
grou
ps h
as d
iffer
ent
obje
ctiv
e, b
elie
fs, n
eeds
, and
func
tions
that
m
ust b
e co
ordi
nate
d.!
Forc
es in
ext
erna
lenv
ironm
ents
hav
e re
cent
ly re
duce
d th
e po
wer
of t
hese
inte
rnal
gr
oups
.
2-23
The
Dyn
amic
Inte
ract
ion
of H
isto
rical
Fo
rces
, Bus
ines
s En
viro
nmen
ts, a
nd
Cor
pora
te A
ctio
ns
2-24
Con
clud
ing
Obs
erva
tions
!Th
e en
viro
nmen
ts o
f bus
ines
s ha
ve p
rofo
und
impl
icat
ions
for m
anag
ers.
!Th
e de
ep h
isto
rical
forc
es a
ct to
sha
pe th
e se
ven
key
envi
ronm
ents
.!
The
actio
ns o
f bus
ines
s co
nsta
ntly
influ
ence
no
t onl
y cu
rren
t env
ironm
ents
but
, in
addi
tion,
th
e de
eper
cou
rse
of h
isto
ry.
!A
lthou
gh s
trong
ly c
onst
rain
ed b
y its
en
viro
nmen
t, bu
sine
ss h
as a
pow
erfu
l cap
acity
to
sha
pe s
ocie
ty a
nd c
hang
e hi
stor
y in
way
s la
rge
and
smal
l.
2-25
