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21 Cards in this Set
- Front
- Back
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List the org. Life cycle |
1. Birth 2. Growth 3. Decline 4. Death |
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What are entrepreneurs? |
People who recognize and take advantage of opportunities to use their skills and competences to create value |
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What happens during organizational birth |
It is a founding of an organization. It is when an organization is most in danger and have the greatest chance of failure. |
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What is liability of newness? |
When an org is first in a new environment. There is no formal structure, there are uncertainty and conditions in the environment may be hostile to a new org. (Resources are difficult to obtain) |
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Steps in developing a business plan |
1. Notice a product opportunity and develop a basic business idea 2. Conduct a SWOT analysis 3. Decide whether the business opportunity is feasible 4. Prepare a detailed business plan |
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What is the population ecology theory |
It explains the factors that affect the rate at which new org. Are born (and die) in a population of existing populations * according to this theory, rate of birth in a new environment increases rapidly and first and then tapers off as resources become less plentiful and competition increases. |
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What is population of org. |
Org. That are competing for the same resources in the environment |
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What is population density |
No. Of. Org that can compete for the same resources in the particular environment |
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Why does birthrate increases rapidly? |
• there is an increase in the knowledge and skills available to generate similar new org. • entrepreneurs see a potential due to the success of the first org. And will imitate said org. |
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Why does birthrate tapers off |
• Availability of resources in the environment for late entrants diminishes *early entrants have first-mover advantages • Difficulty of competing with existing org. For resources *new companies need spend more |
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What are the four types of strategies |
1. R-strategy 2. K-strategy 3. Specialist strategy 4. Generalist strategy |
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What is organizational growth |
The life cycle in which org. Develop value creation skills and competences that allow them to acquire additional resources |
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What is institutional theory |
Studies how org. Can increase their ability to grow and survive in a competitive environment by satisfying their stakeholders |
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What is org. Isomorphism |
Similarity among org. In a population |
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What are the 3 types of isomorphism |
1. Coercive 2. Mimetic 3. Normative |
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What are the disadvantages of isomorphism |
• The ways org. Have learned to operate may become outdated - intertia sets in, low effectiveness • Reduce the incentive to experiment so level of innovation decline (too focused on imitating competitors) |
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Describe the Greiner's Model of Org. Growth |
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What happens in org. Decline and death |
Its a life cycle that org. Enters when it fails to "anticipate, recognize etc to external or internal pressures that threaten its long term survival" |
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What is profitability |
A measurement of how well a company is making use of resourced relative to its competitors |
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Types of org. Inertia |
1. RIsk aversion 2. Desire to maximise rewards(scared that they would lose their power, job security) 3. Overly bereaucratic culture (may resisy attempts of subordinates to innovate and stress on keeping the status quo) |
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What are the 5 stages of decline |
1. Blinded ☆gain access to good info 2. Inaction ☆downsizing or laying off employees 3. Faulty action ☆radical change 4. Crisis. ☆major reorganization (top-down change) 5. Dissolution |
