Understanding Organizational Environment and Culture in International Business

An organization is not separate from its environment.

There are two types of environments: internal and external.

Organizations need to understand and consider their environment for goal achievement.

📚 The video discusses the external and internal environment of organizations, which includes micro and macro environments.

💼 The internal environment of an organization includes the owners, managers, employees, and physical environment.

🎯 Understanding the goals and objectives of the owners and managing team is essential for the organization's success.

Different motives and backgrounds of employees impact organizational management.

Organizations have both internal and external environments that affect their operations.

Customers, competitors, and suppliers are important factors in the external environment.

🌍 The external environment of an organization includes producers, strategic partners, regulators, government, and society.

🔄 Strategic partners are other companies that have different businesses but collaborate with each other for mutual benefits, such as McDonald's and Disney.

📜 Regulators are stakeholders who ensure fair and safe business practices for all parties involved, like international organizations or governments.

🌍 Globalization is a process that connects the world and removes geographical boundaries.

📦 International business activities include export-import, licensing, and strategic alliances.

💼 Direct investment is another form of international business activity.

💼 International business activities involve companies buying assets or investing in other companies in different countries.

🌍 There are three factors to consider in international business: control in international trade, economic communities, and cultural differences.

🗺️ Control in international trade involves countries protecting their local businesses through import restrictions and policies.

🌍 Understanding cultural differences is crucial in international business.

🏢 Organizational culture plays a significant role in the performance of a business.

⚙️ Managers need to understand and manage organizational culture to achieve organizational goals.