Chapter 3: Organizational Environments and Cultures
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Examine the results of the survey, sorting student responses by genre. The exercise will work best if you
have at least three (3) or four (4) groups with significant representation. If your students are heavily
represented in only one or two genres, it will be best to conduct a follow-up survey by “sub–genres” (i.e.,
In-Class Use
Encourage students to tackle the exercise as representatives of their favorite musical genre. They are the
ones who must argue for the future of the genre. This is also a rare opportunity to speak directly to the
movers and shakers in a major music company. The exercise will be more productive and more fun to the
extent that students take up the cause for their musical tribe.
Debrief by discussing these questions, which also appear in Step 6:
• Did you sense some cultural affinity with others who shared your musical tastes? Why, or why
not?
You might close the debriefing session with a summation discussion of the opportunities and challenges
posed by working across cultural differences. Recognize that students in your class may vary in their
Develop Your Career Potential
DEALING WITH THE PRESS
Purpose
This exercise is designed to introduce students to some basic rules about dealing with the press in a crisis.
There are several ways to structure this exercise. One way is to have students prepare written answers to
the questions before coming to class. Another is to have students answer the questions during class. If
Setting It Up
Begin by rereading the scenario. Then pose the first question and give the student an opportunity to
respond. At this point, you could stop to discuss what students liked or disliked about each answer. I
prefer to simulate a press environment, by beginning with the initial question as stated in the case and
Chapter 3: Organizational Environments and Cultures 61
Rats Take Over Manhattan Taco Bell
1. “Yesterday’s filming of rats at an ADF-owned Taco Bell has caused consumers to question the
cleanliness of the restaurants where they eat. This restaurant is also owned by ADF Companies. Do
you also have problems with rodents?”
• Take the initiative – If you don’t answer reporters’ questions, they’ll find someone who will,
someone who is likely to answer from a different perspective. Company spokespersons need
to take the initiative to share the company’s perspective on what has occurred.
2. “Recent outbreaks of E. coli at other Taco Bells in the Northeast were finally attributed to
contaminated lettuce, so Taco Bell changed suppliers.” To the cameraman: “Get the camera in close
here [camera zooms into the kitchen area, the slop sink, and the handwashing station] because I want
our viewers to see the kitchen.” Back to you: “How can consumers be sure that contamination
occurred at the produce supplier and not inside filthy restaurants?”
• Stick to the facts. Don’t wing it. If you don’t have a cleanliness policy or practice, don’t
make one up on the spot. Reporters will smell a rat. If there are sanitation procedures,
describe them. But don’t guess the answers to questions.
Chapter 3: Organizational Environments and Cultures
62
3. “The health inspectors gave a passing grade to the rat-infested Taco Bell just a day before television
crews filmed the rats running all over the restaurant. That doesn’t instill our viewers with great
confidence in the system. Would you be willing to let our camera crews accompany the health
inspector during a full inspection of your restaurant so that viewers can see what an inspection
entails?”
If possible, cooperate with reporters – Reporters work under short deadlines. Reporters need
information. Reporters want a good story. And if they don’t get these things from you, they’ll get
them from someone else. It’s possible to cultivate a good relationship with the press by helping them
Reel to Real – Biz Flix
Because they are so short, the Biz Flix videos are best used to supplement your lesson plans. They are
designed to illustrate the content rather than convey all of the chapter concepts.
Video: Charlie Wilson’s War
Segment Summary:
“Good–Time Charlie Wilson’s War (Tom Hanks) is a Democratic Congressman from East Texas with a
reputation for partying, drinking, and womanizing. When Afghanistan rebels against the Soviet troop
Discussion Questions from Text:
1. This chapter discussed organizational culture as having three levels of visibility. Visible artifacts are
at the first level and are the easiest to see. Which visible artifacts did you observe in this sequence?
A number of visible artifacts within the Capital Building can be observed in this video clip: One of
the most visible is the Capital Building dress code, which is buttoned up and professional, promoting
Chapter 3: Organizational Environments and Cultures 63
2. Values appear at the next level of organizational culture. You can infer a culture’s values from the
behavior of organizational members. Which values appear in this sequence?
Values are invisible beliefs expressed by people in a company. In a legislative environment, the most
3. Organizational members will unconsciously behave according to the basic assumptions of an
organization’s culture. You also infer these from observed behavior. Which basic assumptions
appear in this sequence?
Basic assumptions are unconscious beliefs held about a company that are buried deep below the
surface. An example of a basic assumption in this video clip is the “good old boys club”, with white
Chapter 3: Organizational Environments and Cultures
64
Additional Discussion Questions:
1. Which components of the specific environment are most significant in Charlie Wilson’s role as a
legislator?
Students may answer that any of the five components are significant to a legislator. Customers and
suppliers in this case represent the same individuals – constituent taxpayers. Because they are
2. In your opinion, how do you think that the organizational culture has changed at the Capital Building
since 1980? What has stayed the same?
It is likely that much of the visible artifacts have remained the same since the 1980’s. Congressmen
still wear suits and carry themselves in a professional demeanor. One significant difference is that
Reel to Real – Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan.
The Management Workplace video for Chapter 3 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
Video: Camp Bow Wow
The Environment and Corporate Culture
Summary:
In ten years, Camp Bow Wow has grown from a single kennel in Denver, Colorado to a $40 million
dollar business, with more than 150 locations. The transition from a small family business to a national
Discussion Questions from Text:
1. What aspects of Camp Bow Wow’s corporate culture reflect the surface level of the organizational
culture? What aspects reflect the values and beliefs? What aspects reflect the unconsciously held
assumptions and beliefs.
Visible aspects of Camp Bow Wow’s culture include the company logo, the presence of dogs in
Chapter 3: Organizational Environments and Cultures 65
2. Why did Camp Bow Wow have to change its culture when it became a national franchise?
Camp Bow Wow’s early family-business culture was useful in the startup phase of Camp Bow
Wow’s growth. However, Founder Heidi Ganahl says her company required a different culture once
3. What impact does Heidi Ganahl’s personal story have on employees at Camp Bow Wow?
The story of Heidi Ganahl is famous at all levels of the Camp Bow Wow organization. Consumers
and franchisees who come in contact with Camp Bow Wow learn about the company by hearing the
determines whether we will be successful or unsuccessful.
Workplace Video Quiz
Video Segment 1
Video segment title
Environment and Culture of Organizations
Start time (in sec)
0:00
Stop time (in sec)
1:50
Quiz Question 1
Heidi Ganahl’s personal example of triumph over tragedy can be expected
to have a strong influence on Camp Bow Wow’s:
Option a
Organizational control
Option b
Organizational culture
Option c
Organizational diversity
Option d
Organization chart
Correct option
b: Organizational culture
Chapter 3: Organizational Environments and Cultures
66
Feedback for option c
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Feedback for option d
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Quiz Question 2
Which part of Camp Bow Wow’s organizational environment is likely to
be affected and shaped by the inspirational biography of founder Heidi
Ganahl?
Feedback for option a
Incorrect. The internal environment consists of the trends and events
within an organization that affect the organizational culture.
Feedback for option b
Incorrect. The internal environment consists of the trends and events
within an organization that affect the organizational culture.
Feedback for option c
Correct. The internal environment consists of the trends and events within
an organization that affect the organizational culture.
Feedback for option d
Incorrect. The internal environment consists of the trends and events
within an organization that affect the organizational culture.
Quiz Question 3
Heidi Ganahl’s account of how she founded Camp Bow Wow through
great adversity is best characterized as a:
Option a
Slogan
Option b
Story
Option c
Hero
Correct option
b: Story
Feedback for option a
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Feedback for option b
Correct. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Feedback for option c
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Feedback for option d
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Video Segment 2
Video segment title
Environment and Culture of Organizations
Start time (in sec)
1:50
Stop time (in sec)
4:03
Option a
Ceremonies
Option b
Visible artifacts
Option c
Stories
Option d
Values
Option a
General environment
Option b
Specific (task) environment
Option c
Internal environment
Option d
Natural environment
Correct option
c: Internal environment
Chapter 3: Organizational Environments and Cultures 67
Correct option
b: visible artifacts
Feedback for option a
Incorrect. Visible artifacts are visible signs of an organization’s culture.
Feedback for option b
Correct. Visible artifacts are visible signs of an organization’s culture.
Feedback for option c
Incorrect. Visible artifacts are visible signs of an organization’s culture.
Feedback for option d
Incorrect. Visible artifacts are visible signs of an organization’s culture.
Quiz Question 2
Camp Bow Wow’s organizational culture will strongly promote business
success if:
Option a
Franchisees like Sue Ryan are free to establish a culture counter to the one
environment
Feedback for option a
Incorrect. A key factor in a successful organizational culture is that it has a
clear mission.
Feedback for option b
Incorrect. A key factor in a successful organizational culture is that it has a
clear mission.
Feedback for option c
Correct. A key factor in a successful organizational culture is that it has a
clear mission.
Feedback for option d
Incorrect. A key factor in a successful organizational culture is that it has a
clear mission.
Quiz Question 3
Option a
Strong consistent cultures are inflexible and incapable of adapting to
environmental change
Option b
Strong consistent cultures are too flexible and capable of adapting to
environmental change
Option c
Strong consistent cultures don’t perform well in any environment
Option d
The passing of time provides stability and predictability for businesses
Correct option
a: Strong consistent cultures are inflexible and incapable of adapting to
environmental change
According to CEO Heidi Ganahl, Camp Bow Wow requires a strong and
consistent corporate culture to keep all local franchise owners “on the same
page” and following a common template for the business and brand. This
Feedback for option a
Correct. A strong culture doesn’t guarantee success because it makes
change very difficult.
Feedback for option b
Incorrect. A strong culture doesn’t guarantee success because it makes
change very difficult.
Feedback for option c
Incorrect. A strong culture doesn’t guarantee success because it makes
change very difficult.
Feedback for option d
Incorrect. A strong culture doesn’t guarantee success because it makes
change very difficult.
Video Segment 3
Video segment title
Environment and Culture of Organizations
Start time (in sec)
4:03
Stop time (in sec)
5:13
established by Camp Bow Wow corporate headquarters
Option b
It possesses a caring family-like atmosphere
Option c
It has a strategic purpose
Option d
Founder Heidi Ganahl is viewed as a hero
Correct option
Chapter 3: Organizational Environments and Cultures
68
Quiz Question 1
At Camp Bow Wow, all employees, franchisees, and recruits learn the
inspirational story of how Heidi Ganahl founded the doggie day care
company. This is important because:
Option a
The story helps convey Camp Bow Wow’s shared values, attitudes, beliefs,
and mission
Option b
The story helps individuals relieve stress
Option c
The story reduces absenteeism
Option d
The story reduces uncertainty in the external environment
Quiz Question 2
Heidi Ganahl says Camp Bow Wow promotes a scrappy “we–can-conquer-
all” work attitude that helps individuals overcome challenges. This attitude
is especially useful for businesses that exist within:
Option a
A task environment
Option b
A general environment
Option c
Complex environments
Option d
Stable, simple organizational environments
Correct option
c: Complex environments
Feedback for option b
make many challenges and complications to an organization.
Feedback for option c
Feedback for option d
Quiz Question 3
According to leaders at Camp Bow Wow, Heidi Ganahl’s life story helps
to ________ individuals throughout the organization.
Option a
Promote
Option b
Reward
Option c
Coerce
Option d
Motivate
Correct option
d: Motivate
Feedback for option a
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
culturally consistent assumptions, decisions, and actions.
Feedback for option b
Feedback for option c
Incorrect. Organizational stories like Heidi Ganahl’s help emphasize
Correct option
a: The story helps convey Camp Bow Wow’s shared values, attitudes,
Feedback for option a
Correct. Organizational stories like Heidi Ganahl’s help emphasize
Feedback for option d
culturally consistent assumptions, decisions, and actions.
Chapter 3: Organizational Environments and Cultures 69
Review Questions
1. Describe the three basic characteristics of changing external environments.
The three basic characteristics of changing external environments are environmental change,
complexity, and munificence.
• Environmental change is the rate at which a company’s general and specific environments
2. How do the characteristics of changing environments affect uncertainty?
Environmental change, environmental complexity, and resource scarcity affect environmental
uncertainty, which is how well managers can understand or predict the external changes and trends
3. What is the difference between the general and specific business environments?
The general environment includes the economic, technological, sociocultural, and political trends that
4. List the components of the general environment.
The general environment consists of economic, technological, sociocultural, and political/legal events
and trends that affect all organizations. Because the economy influences basic business decisions,
5. How do the elements of the specific business environment affect businesses?
Each organization also has a specific environment that is unique to that firm’s industry and directly
affects the way it conducts day-to-day business. The specific environment of any company can be
divided in to five sectors:
6. Describe the three-step process that managers use to make sense of their changing environments.
• Environmental scanning: Managers search the environment for important events or issues
that might affect an organization. This allows managers to stay up-to-date on important
7. How are organizational cultures created and maintained?
An organizational culture is the set of key values, beliefs, and attitudes shared by organizational
8. What are the characteristics of successful organizational cultures?
Organizational cultures create a successful internal environment by binding all employees together in
a “we’re– in–this-together” attitude. When employee attitudes are congruous with the culture,
9. Identify the three levels of organizational culture and give examples of each.
Three levels of organizational culture are: 1) the surface, where reflections of culture can be heard,
10. How can managers change organizational cultures?
Chapter 3: Organizational Environments and Cultures 71
Managers can successfully change the surface levels of culture by motivating different behavior. The
Additional Activities and Assignments
Out-of-Class Project: “Organizational Culture.” Divide the class into small groups. Have each group
collect stories about the founders of large businesses such as McDonald’s, Starbucks, UPS, Walgreens, or
Out-of-Class Project: “Competitive Analysis.” Divide the class into groups of 4-5 students. Assign
each group to represent one of the following companies: IBM, Coca-Cola, Microsoft, Daimler-Chrysler,
In–Class Activity: “Environmental Scanning.” Divide the class into small groups (no more than 2-3
students). Give each group a recent annual report of a well-known company and have them list all the