Chapter 3

alexisturnbull's version from 2016-01-15 21:01


Question Answer
What do changing environments effect?environmental uncertainty
What do general environments consist of?the economy, technological, sociocultural, and political/legal trends that indirectly affect all organizations
What are components of a specific environment?customer, competitor, supplier, industry regulation, and advocacy groups
List the steps to understand changes in their external environmentsEnvironmental scanning, interpreting environmental factors, and acting on threats and opportunities
List factors that influence successful culturesAdaptability involvement, clear mission, and consistency
External environmentsthe forces and events outside a company that have the potential to influence or affect it.
Environmental changethe rate at which a company’s general and specific environments change.
What occurs in stable environments?the rate of environmental change is slow.
What occurs in dynamic environmentsthe rate of environmental change is fast.
Punctuated equilibrium theorythe theory that companies go through long periods of stability, followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium
Environmental complexitythe number and the intensity of external factors in the environment that affect organizations
Simple environmentan environment with few environmental factors
Complex environmentan environment with many environmental factors
Resource scarcitythe abundance or shortage of critical organizational resources in an organization’s external environment
Uncertaintythe extent to which managers can understand or predict which environmental changes and trends will affect their businesses
General environmentthe economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations
Specific environmentthe customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business
Business confidence indicesindices that show managers’ level of confidence about future business growth
Competitorscompanies in the same industry that sell similar products or services to customers
Competitive analysisa process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses
Supplierscompanies that provide material, human, financial, and informational resources to other companies
Supplier dependencethe degree to which a company relies on a supplier because of the importance of the supplier’s product to the company and the difficulty of finding other sources of that product
Buyer dependencethe degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products
Opportunistic behaviora transaction in which one party in the relationship benefits at the expense of the other
Relationship behaviorthe establishment of mutually beneficial, long-term exchanges between buyers and suppliers
Cognitive mapsgraphic depictions of how managers believe environmental factors relate to possible organizational actions
Internal environmentthe events and trends inside an organization that affect management, employees, and organizational culture
Organizational culturethe values, beliefs, and attitudes shared by organizational members
Organizational storiesstories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
Organizational heroes people celebrated for their qualities and achievements within an organization
Company missiona company’s purpose or reason for existing
Consistent organizational culturea company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes

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