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2.1a Task Environment The task environment includes those sectors that have a direct working relationship with the organization, among them customers, competitors, suppliers, and the labor market. Customers Those people and organizations in the environment that acquire goods or services from the organization are customers As recipients of the organization's output, customers are important because they determine the organization's success. Organizations have to be responsive to marketplace changes. Consider Encyclopaedia Britannica, where sales of the set of 32 bound volumes declined from 100,000 in 1990 to barely 3,000 in 1996. Customers no longer had time for door-to-door salespeople and no longer wanted a 129pound set of books. Managers knew something had to be done. They followed a carefully planned strategic transition to remake Encyclopaedia Britannica into a totally different organization by 2012, when the last bound volumes were printed and the company's digital strategy was fully in place. Managers placed heavy emphasis on their K12 customers, where Britannica's high editorial quality had always been appreciated. Content is updated every 20 minutes by teams of scholars from around the world. Today, more than half of U.S. students and teachers have access to online Britannica content, and the service is growing even faster overseas. The company also has around 500,000 household subscribers, who prefer quality and credibility over Wikipedia's quantity and free access. *' Competitors Organizations in the same industry or type of business that provide goods or services to the same set of customers are referred to as competitors Competitors are constantly battling for loyalty from the same group of customers. For example, in early 2013, Samsung became the world leader in smartphone sales, topping Apple in several countries, and the competition has gotten even hotter as Samsung has stepped up the challenge in the U.S. market. The company held its first promotional event for its agship smartphone, the Galaxy S4, at a packed event at New York's Radio City Music Hall. Apple's iPhone still has strong brand loyalty, but the buzz at the moment is on Samsung's side. A survey found that first-time smartphone buyers preferred Samsung by about a 3to1 margin. \"This is Samsung's time right now,\" said Gene Munster, an analyst at Piper Iaffray. *- 1. Section 2.1a in your book includes the following quote in the margin: \"it is not the strongest of the species that survives, nor the most intelligent that survives. it is the one that is the most adaptable to change. \"Charies Darwin (1809-1882), Naturalist. How do you think the quote relates to a company and its relationship with 1) its customers? and 2) its competitors? Don't worry about using "business language." Explain your point clearly and concisely in terms that anyone will understand. 2. In Section 2.1a Labor Market, your book mentions various factors related to the labor market. Read that section and then think about what company should do to keep the employees it currently employees, beyond simply paying them more. Money is nice, but we will learn that is more to happiness at work than just a good paycheck. Use some critical thinking and maybe chat with people you know who have been in a professional position for a few years to gain perspective. Provide some details to your answer - explain what you would provide and why you think it would be successful at retaining your employees. In the general environment there are six components: international, technological, natural, sociocultural, economic, legal/political. The following questions focus on the general environment