Organization's Environment

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An organization is very dependent on the environment in which it operates.  The environment can control the success or failure of a business.  The opening of the chapter states, "The environment in which an organization operates influences its structure and processes."  I believe this to be true because if an organization does not adapt to a changing environment they will most likely fail.  The environment of an organization can be split up into two types: the general environment and the task environment.  The general environment can be thought of as external to the organization and does not directly impact the organization but can influence it and include categories such as economic, sociocultural, legal, ecological, technological, political, and demographic.  The task environment more directly affects the organization and includes things like suppliers, regulatory agencies, athletes' groups/staff, competitors, and customers/members/fans. 

 

I am now going to look at these environmental aspects with the NBA in mind.  The current state of the economy is a factor that the NBA is looking at.  With the economy down and people not attending games as much, NBA teams need to adapt and come up with ways to attract new and old customers back to the arenas to watch the games.  In the political realm, labor laws that allow unions are now causing difficulties in the negotiations among the refs and the league. Sociocultural aspects that the NBA deals with in their general environment are things like the general public's interest in basketball.  In the United States basketball has been around for a long time and is a very popular sport.  Legal concerns can come from various local, state, and national laws.  The ref holdout is a legal issue.  The demographic of the NBA is pretty broad.  They target young kids to adults, and people from all racial and ethnic backgrounds.  Ecologically the NBA does not have many concerns as arenas are indoors and are usually not affected by weather conditions.  The movement towards a "greener" world could affect NBA teams in the public wants of greener stadiums.  Moving into the task environment the NBA, as mentioned earlier, needs to find ways to keep customers interested and keep their stadiums full for games.  A supplier of the NBA would be other corporations that sponsor them.  Sponsors can provide resources to the NBA and in turn could influence the structure and strategy of the NBA.  This situation is discussed further in the Doherty article.  This article examined where Canadian universities acquired money to fund the athletic department and the perceived control that was assumed with the money sources.  As for competition the NBA competes for fans in the beginning of the season with the NFL and with the NBA Finals in early June they are competing with the MLB.

 

These are some questions to think about.  What is the domain of the NBA?  What environment state is the NBA in; simple-stable, simple-dynamic, complex-stable, or complex-dynamic?