BU398 Lecture Notes - Lecture 8: Walmart, Reynolds Group Holdings, Chrysler Pt Cruiser
Document Summary
Organizational environment is all elements that exist outside the boundary of the organization and have potential to affect all or part of the organization. An organization"s domain is an organization"s chosen environmental field of activity. Sectors with which the organization interacts directly and that have a direct effect on the organization"s ability to achieve its goals. Typically includes the industry, raw materials, and market sectors (and sometimes hr and international sectors) In the industry sector, wal-mart has become the nation"s largest food retailer and nontraditional outlets such as club stores and discounters now account for more than 30% of the grocery market. In the raw materials sector, steelmakers owned the beverage can market until the mid-1960s, when reynolds aluminum company launched a huge aluminum recycling program to gain a cheaper source of raw materials and make aluminum cans price-competitive with steel. Includes those sectors that may not directly affect the daily operations of a firm but will indirectly influence it.
