Term
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Definition
| Forces and events outside a company that have the potential to influence or affect it |
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Term
| 3 basic characteristics of changing external environments |
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Definition
Environmental Change
Environmental Complexity
Resource Scarcity
The uncertainty that environmental change, complexity, and resource scarcity can create for organizational managers |
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Term
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Definition
| The rate at which a company's general and specific environments change |
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Term
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Definition
| The rate in which the rate of change is slow |
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Term
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Definition
| An environment in which the rate of change is fast |
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Term
| Application of Dynamic Environment |
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Definition
| Microsoft's XBOX 360, Because of the direct competition in gaming technology |
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Term
| Application of External Environment |
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Definition
| Sony had to cut cost, layoff workers and change internal culture because of the influence of Microsoft and Apple |
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Term
| Punctuated Equilibrium Theory |
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Definition
| The theory that companies go through long periods of stability, followed by short periods of dynamic fundamental change, and then a new equilibrium |
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Term
| Application of Punctuated Equilibrium |
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Definition
| Airline industry billion dollar losses |
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Term
| 3 Revolutionary periods for the Airline Industry |
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Definition
1979 - 1982: Airline Deregulation
1989 - 1993: Lost billions through dynamic changes, key expenses
9-11: Terrorists Attack |
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Term
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Definition
| The number and intensity of external factors in the environment that affect organizations |
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Term
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Definition
| Few environmental factors |
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Term
| Application of Simple External environment |
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Definition
| Dairy industry,has not changed the past 100 years |
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Term
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Definition
| An environment with many environmental factors |
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Term
| Application of Complex Environment |
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Definition
Newspapers: No revenue from classified ads-digital ads are free-Internet based news
it is the content they deliver for success |
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Term
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Definition
| Abundance or shortage of critical organizational resources in an organization's external environment |
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Term
| Application of resource scarcity |
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Definition
LCD's TV and water
Dow Chemical plant and Nalco |
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Term
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Definition
| How well managers can understand or predict the external changes and trends affecting their businesses. |
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Term
| When is environmental uncertainty at its lowest? |
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Definition
| Environmental change and environmental complexity are at low levels and resource scarcity is small |
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Term
| When environmental uncertainty at its highest? |
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Definition
| Environmental change and complexity are extensive and resource scarcity is a problem |
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Term
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Definition
| Consists of the economy and the technological sociocultral, and political/legal trends that indirectly affect all organizations |
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Term
| Application general Environment |
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Definition
| Federal Reserve lowers its prime lending rate, and most business benefit because banks and credit cards companies often lower the interests rates they charge for loans. |
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Term
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Definition
| Unique to that firm's industry and directly affects the way it conducts day-to-day business |
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Term
| Application to specific environment |
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Definition
| Chinese toys made for Toys r us |
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Term
| 4 Components to General Environment |
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Definition
Economy
Technological
Sociocultral
Political/legal |
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Term
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Definition
| Affects every business organization doing business |
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Term
| Business Confidence Indices |
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Definition
| Shows how confident actual managers are about future business growth |
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Term
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Definition
| Knowledge, tools, and techniques used to transform inputs (raw materials, information) into outputs (products, services). |
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Term
| Application of Business Confidence Indices |
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Definition
Conference Board's CEO Confidence Index
Small Business Research Board's Business Confidence Index |
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Term
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Definition
| Refers to the demographic characteristics, general behavior, attitudes, and beliefs of people in a particular society. |
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Term
| Sociocultural Changes and trends influence organizations in two ways |
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Definition
Changes in demographic characteristics
(Married women with children working)
Sociocultural changes in behavior
(sourcing time consuming chores) |
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Term
| Political/Legal Component |
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Definition
| Legislation, regulations, and court decisions that govern and regulate business behavior |
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Term
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Definition
| If customer decide to use another product, your main competitor will cut prices 10% |
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Term
| 5 components to Specific Environment |
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Definition
Customer
Competitor
Supplier
Industry regulation
Advocacy group components of the specific environment affect businesses |
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Term
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Definition
| monitoring customer's changing wants and needs is critical to business success. |
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Term
| 2 Strategies for monitoring customers |
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Definition
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Term
| Reactive Customer Monitoring |
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Definition
| Involves identifying and addressing customer trends and problems after they occur |
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Term
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Definition
| Identifying and addressing customer needs, trends, and issues before they occur |
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Term
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Definition
Companies in the same industry that
sell similar products or services to customers |
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Term
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Definition
| Involves deciding who your competitors are, anticipating competitors move, and determining competitor's strengths and weaknesses |
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Term
| Manager mistakes with competitors |
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Definition
Poor job identifying competitors
under estiamte potential competitors capabilities |
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Term
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Definition
| Companies that provide material, human, financial, and informational resources to other companies |
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Term
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Definition
| The degree to which a company relies on that supplier because of the importance of the suppliers product to the company and the difficulty of finding other resources for that product |
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Term
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Definition
| The degree to which a supplier relies on a buyer because of the importance of that buyer tot he suppliers sales and the difficulty of finding other buyers of its products |
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Term
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Definition
| High degree of buyer or seller dependence, in which one party benefits at the expense of the other |
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Term
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Definition
| Focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers |
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Term
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Definition
| Consists of regulations and rules that govern the practices and procedures of specific industries, businesses, and professions. |
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Term
| Application of Relationship behavior |
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Definition
| Toyota developing long term relationships |
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Term
| Application of industry regulations |
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Definition
| CAFE(Corporate Average Fuel Economy) to regulate that currently require cars and sport utility vehicles to average 27.5 and 22.5mpg |
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Term
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Definition
| Concerned citizens who band together to try to influence the business practices of specific industries, business, and professions. |
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Term
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Definition
| Relies on voluntary participation by the news media and the advertising industry to send out an advocacy group's message. |
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Term
| Application of Public Communication |
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Definition
| Public service campaign to encourage to quit smoking |
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Term
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Definition
| Framing the group's concerns as public issues, affecting everyone, exposing questionable, exploitative, or unethical practices and creating controversy that is likely to receive extensive news coverage |
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Term
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Definition
| Tactic in which an advocacy group actively tries to persuade consumers not to purchase a company's product or service |
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Term
| 3 step process to make sense of the changes in external environments |
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Definition
Environmental Scanning
Interpreting Environmental factors
Acting on Threats and opportunities |
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Term
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Definition
| Searching the environment for important events or issues that might affect an organization, staying up-to-date |
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Term
| Why Environmental Scanning? |
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Definition
Stay up to date
Reduce Uncertainty
Close attention to trends and events that are directly related to their company's ability to compete in the market place
Contributes to organizational performance |
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Term
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Definition
| Summarize the perceived relationships between environmental factors and possible organizational actions |
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Term
| Application Cognitive Map |
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Definition
| Variables in environmental scan, threats or opportunities |
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Term
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Definition
| Consist of trends and events within an organization that affect the management, employees, and organizational culture |
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Term
| Why are Internal Environments important? |
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Definition
| They affect what people think, feel, and do at work. |
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Term
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Definition
| Set of key values, beliefs, and attitudes shared by members of the organization |
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Term
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Definition
| Organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions |
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Term
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Definition
| Organizational people admired for their qualities and achievements within an organization |
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Term
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Definition
| Ability to notice and respond to changes in the organizations environment |
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Term
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Definition
| Business purpose or reason for existing |
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Term
| Consistent Organizational Cultures |
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Definition
| The company actively defines and teaches organizational values, beliefs, and attitudes |
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Term
| Organizational Cultures Exist on 3 levels |
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Definition
Surface level (seen)
Heard (Expressed values and beliefs)
Believed(Unconscious assumptions and beliefs) |
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Term
| One way of changing corporate culture is |
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Definition
| Use behavior addition or behavioral substitution to establish new patterns of behavior among managers and employees |
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Term
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Definition
| Process of having managers and employees perform a new behavior |
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Term
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Definition
| Having managers and employees perform a new behavior in place of another behavior |
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Term
| Another way to change culture is through |
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Definition
| Change visible Artifacts:layout, office design |
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Term
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Definition
| process of gathering information about job applicants to decide who should be offered a job |
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Term
| How can cultures be changed? |
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Definition
Behavioral Addition
Behavioral Substitution
Visible Artifacts
Selection |
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