CHAPTER 3 Managing in a Changing Global Environment 1

domestic core competences abroad to produce goods and services valued by overseas
consumers. Indeed, U.S. companies have been established in overseas countries or so
long that they are oten treated as domestic companies by people in those countries,
people in !ritain, or e"ample, regard #. $. #ein%, #oover, &ord, and Eastman 'oda(
as !ritish companies, oten orgetting their U.S. origins. Similarly, the act that
!ritain is the biggest overseas investor in the United States and that !ritish
companies o)n or have o)ned such *+merican* institutions as !urger 'ing, #o)ard
,ohnson-s, and ,acu%%i is not generally (no)n by +mericans.
+n organi%ation attempts to manage the orces in its environment to obtain the
resources necessary to produce goods and services or customers and clients .see
&igure 3/10. 1he term organi%ational domain reers to the particular range o goods
and services that the organi%ation produces, and the customers and other sta(ehold ers
)hom it serves.
1
+n organi%ation establishes its domain by deciding )hich cus tomers
it is going to serve and then deciding ho) to manage the orces in its environment to
ma"imi%e its ability to secure needed resources. 1o obtain inputs, or e"ample, an
organi%ation has to decide )hich suppliers to deal )ith rom the range o possible
suppliers and ho) to manage its relationships )ith its chosen suppliers. 1o obtain
money, an organi%ation has to decide )hich ban( to deal )ith and ho) to man age its
relationship )ith the ban( so that the ban( )ill be inclined to authori%e a loan.
2rgani%ational
domain 1he particu/
lar range o goods
and services that the
organi%ation
produces and the
customers and other
sta(eholders )hom
it serves.
CHAPTER 3 Managing in a Changing Global Environment 3
1
Demgraphic'
nd I cultural
forces
'.Interna
tional
forces
^Politic
al forces
E-
wironnie;it
ai .'forces'
'
m General
enironment
!."'.
# Economic
fortes i
$peci%c
enironmen
t
&echnologic
al ' (
'force's
CHAPTER 3 Managing in a Changing Global Environment 3

" i
Figure 3-1 The Organizational Environment.
^^the specific environment are forces that directly affect an organization's ability to obtain resources !n -4the genera"
environment are forces that shape the specific environments of all organizations