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The environments of business have profound implications for managers. Figure 2.10 summarizes the chapter discussion by illustrating the dynamic interconnection of business with historical forces and current environments. The deep historical forces act to shape the seven key environments, while the actions of business constantly influence not only current environments but, in addition, the deeper course of history. As the arrow running from the corporation to the world in Figure 2.10 indicates, business is not simply a passive entity that moves with historical and environmental forces like a billiard ball reacting to impacts. On the contrary, although strongly constrained by its environment, business has a powerful capacity to shape society and change history in ways small and large. FIGURE 2.10 The Dynamic Interaction of Historical Forces, Business Environments, and Corporate Actions
For example, when Eastman Kodak wanted to display the speed of its fast film and Flashmatic shutter in 1940, it ran magazine ads showing pictures of “Kodak Moments“ when people blew out candles on their birthday cakes. The ads so popularized this charming rite that it became universal among Americans.44 In contrast to such a small cultural change, the story of the automobile illustrates how industries can rearrange whole societies. Perhaps no twentieth century industry created more intentional and unintentional change. It was a prime mover of the American economy and once accounted directly or indirectly for one of every eight jobs. It encouraged an expansive highway system, brought decline to the railroads, depleted oil reserves, created pollution, altered cities, entrenched the idea that status was conferred by ownership of material objects, and changed patterns of courtship and crime. 44 James B. Twitchell, Lead Us Not into Temptation (New York: Columbia University Press, 1999), p. 26. |
