01-01-2018

(a) Competitors, industry size and (g) Recession, unemployment rate,

competitiveness, related issues inflation rate, rate of investment,
(b) Suppliers, (j) (a) economics, growth
International Industry (h) City, state, federal laws
manufacturers, real Sector Sector
estate, services and regulations, taxes,
(i) (b) services, court system,
(c) Labor market, Sociocultural DOMAIN Raw Materials political processes
employment agencies, Sector Sector
universities, training (i) Age, values, beliefs,
schools, employees education, religion,
in other companies, (c) work ethic, consumer
(h)
unionization Government
Human and green
Resources
(d) Stock markets, Sector ORGANIZATION Sector
movements
banks, savings and (j) Competition from
loans, private and acquisition by
(g) (d)
investors Economic Financial foreign firms,
(e) Customers, clients, Conditions Resources entry into overseas
Sector Sector
potential users of products markets, foreign
(e)
and services (f)
Market
customs, regulations,
Technology exchange rates
(f) Techniques of production, science, Sector
Sector
computers, information technology

THE ENVIRONMENT STRUCTURE LINK

 Organic structure and systems

High Complexity – Low Formalization
– Low Centralization
– Low Standardization
High Rate of Change  Many Deptts & Boundary Roles
 More internal integrators

 Establish favourable linkages:

– Ownership, alliances…
Scarce Resources  Political activity, associations,
change of domain

1
 01-01-2018

Low Uncertainty Low-Moderate Uncertainty

1. Mechanistic structure; formal,
centralized
2. Few departments
STABLE
3. No integrating roles
4. Current operations orientation;
low speed response
ENVIRONMENTAL
DYNAMISM High-Moderate Uncertainty
1. Organic structure, teamwork;
participative, decentralized
UNSTABLE 2. Few departments, much boundary
spanning
3. Few integrating roles
4. Planning orientation; fast response
1. Mechanistic structure; formal,
centralized
2. Many departments, some boundary
spanning
3. Few integrating roles
4. Some planning; moderate speed
response
High Uncertainty
1. Organic structure, teamwork;
participative, decentralized
2. Many departments differentiated,
extensive boundary spanning
3. Many integrating roles
4. Extensive planning, forecasting;
high speed response

LOW HIGH
ENVIRONMENTAL COMPLEXITY