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Chapter

The Management Environment Copyright ©2015 Pearson Educa9on, Inc.

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Learning Outcomes • Explain what the external environment is and why it’s important. • Discuss how the external environment affects managers. • Define what organiza9onal culture is and why it’s important. • Describe how organiza9onal culture affects managers. Copyright ©2015 Pearson Educa9on, Inc.

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2.1 Explain what the external environment is and why it’s important.

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External Environment

Factors, forces, situa9ons, and events outside the organiza9on that affect its performance.

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Components of the External Environment

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How Has the Economy Changed? • Turmoil in mortgage markets • Spread to businesses • “Great Recession” • Foreclosures, unemployment, public debt, and social problems

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Economic Inequality Harris Interac9ve Poll:

Only 10 percent of adults think economic inequality is “not a problem at all.”

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How Much Difference Does a Manager Make?

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