Management Concepts Chp 3

Front 1

What is an External Environment?

Back 1

all events outside a company that have the potential to influence or affect it.

Front 2

What is Environmental Change?

Back 2

the rate at which a company’s general and specific environments change.

Front 3

What is Environmental Change?

Back 3

the rate at which a company’s general and specific environments change.

Front 4

Stable Environment

Back 4

an environment in which the rate of change is slow.

Front 5

Dynamic Environment

Back 5

an environment in which the rate of change is fast.

Front 6

Punctuated equilibrium theory

Back 6

theory that holds that companies go through long, simple periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolution), and ending with a return to stability (new equilibrium).

Front 7

Environmental Complexity

Back 7

the number of external factors in the environment that affect organizations.

*A company’s environment can be simple or complex:

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Simple environment:

Back 8

an environment with few environmental factors.

Front 9

Complex environment:

Back 9

an environment with many environmental factors.

Front 10

Resource Scarcity:

Back 10

the degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources.

***A company’s environment can have abundance or scarcity of resources:

Front 11

Environmental Uncertainty:

Back 11

the extent to which managers can understand or predict which environmental changes and trends will affect their business.

****Environmental uncertainty is low when there is little complexity and change and when resources are abundant. However, uncertainty is high when there is much complexity and change or when resources are scarce.

Front 12

General environment:

Back 12

the economic, technological, socio-cultural, and political trends that affect all organizations.

Front 13

Specific environment:

Back 13

the customer, competitor, supplier, industry regulation, and public pressure group trends that are unique to an industry and which directly affect how a company does business.

Front 14

Business confidence indices:

Back 14

indices that show managers’ level of confidence about future business growth.

Front 15

Technological Component

Back 15

Changes in technology can help companies provide better products or produce their products more efficiently. Companies must create their own or use emerging technologies to compete in the future.

Front 16

Technological Component

Back 16

Changes in technology can help companies provide better products or produce their products more efficiently. Companies must create their own or use emerging technologies to compete in the future.

Front 17

Technology

Back 17

the knowledge, tools, and techniques used to transform inputs (raw materials, information, etc.) into outputs (products and services).

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Technology

Back 18

the knowledge, tools, and techniques used to transform inputs (raw materials, information, etc.) into outputs (products and services).

Front 19

Socio-cultural Component

Back 19

The socio-cultural component of the general environment refers to the demographic characteristics and general behavior, attitudes, and beliefs of society.

Changing demographics – such as the growth or decline of certain ethnic groups or age segments – affect how companies run their businesses.

***Changes in behavior, attitudes, and beliefs have also affected the demand for certain products and services.

Front 20

Socio-cultural Component

Back 20

The socio-cultural component of the general environment refers to the demographic characteristics and general behavior, attitudes, and beliefs of society.

Changing demographics – such as the growth or decline of certain ethnic groups or age segments – affect how companies run their businesses.

***Changes in behavior, attitudes, and beliefs have also affected the demand for certain products and services.

Front 21

Political/Legal Component

Back 21

The political/legal component of the general environment includes the legislation, regulation, and court decisions that govern and regulate business behavior.

Front 22

Political/Legal Component

Back 22

The political/legal component of the general environment includes the legislation, regulation, and court decisions that govern and regulate business behavior.

Front 23

Specific Environment:

Back 23

An organization’s specific environment directly affects the way a company conducts its business. The specific environment consists of customers, competitors, suppliers, industry regulation, and advocacy groups.

Front 24

Specific Environment:

Back 24

An organization’s specific environment directly affects the way a company conducts its business. The specific environment consists of customers, competitors, suppliers, industry regulation, and advocacy groups.

Front 25

Customer Component

Back 25

Companies cannot exist without customers, who purchase their products and services. Management can engage in reactive and proactive monitoring of customer activity.

Front 26

Customer Component

Back 26

Companies cannot exist without customers, who purchase their products and services. Management can engage in reactive and proactive monitoring of customer activity.

Front 27

Reactive customer monitoring

Back 27

is identifying and addressing customer trends and problems after they occur.

Front 28

Proactive customer monitoring

Back 28

is sensing events, trends, and problems before they occur or before customers complain.

Front 29

Competitor Component

Back 29

companies in the same industry that sell similar products or services to customers.

Front 30

Competitive analysis:

Back 30

a process for monitoring competitors that involves identifying competitors, anticipating their moves, and determining their strengths and weaknesses.

Front 31

Supplier Component

Back 31

companies that provide material, human, financial, and informational resources to other companies.

Front 32

Supplier Component

Back 32

companies that provide material, human, financial, and informational resources to other companies.

Front 33

Supplier dependence:

Back 33

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.

Front 34

Supplier dependence:

Back 34

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.

Front 35

Buyer dependence:

Back 35

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of selling its products to other buyers.

Front 36

Buyer dependence:

Back 36

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of selling its products to other buyers.

Front 37

Opportunistic behavior

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a transaction in which one party (buyer or supplier) benefits at the expense of the other.

Front 38

Opportunistic behavior

Back 38

a transaction in which one party (buyer or supplier) benefits at the expense of the other.

Front 39

Relationship behavior:

Back 39

mutually beneficial, long-term exchanges between buyers and suppliers.

Front 40

Relationship behavior:

Back 40

mutually beneficial, long-term exchanges between buyers and suppliers.

Front 41

Industry Regulation Component

Back 41

regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions.

Front 42

Industry Regulation Component

Back 42

regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions.

Front 43

Advocacy Groups

Back 43

groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions.

Advocacy groups use a number of techniques to influence companies: public communications, media advocacy, and product boycotts.

Front 44

Public communications

Back 44

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get an advocacy group’s message out.

Front 45

Public communications

Back 45

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get an advocacy group’s message out.

Front 46

Media advocacy:

Back 46

an advocacy group tactic of framing issues as public issues, exposing questionable, exploitative, or unethical practices, and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage.

Front 47

Media advocacy:

Back 47

an advocacy group tactic of framing issues as public issues, exposing questionable, exploitative, or unethical practices, and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage.

Front 48

Product boycott:

Back 48

an advocacy group tactic of protesting a company’s actions by convincing consumers not to purchase its product or service.

Front 49

Product boycott:

Back 49

an advocacy group tactic of protesting a company’s actions by convincing consumers not to purchase its product or service.

Front 50

Environmental scanning:

Back 50

earching the environment for important events or issues that might affect an organization.

Managers scan the environment to stay up-to-date on important industry factors and to reduce uncertainty. It also helps managers detect environmental changes and problems before they become crises.

Front 51

Environmental scanning:

Back 51

earching the environment for important events or issues that might affect an organization.

Managers scan the environment to stay up-to-date on important industry factors and to reduce uncertainty. It also helps managers detect environmental changes and problems before they become crises.

Front 52

Cognitive maps:

Back 52

graphic depictions of how managers believe environmental factors relate to possible organizational actions.

Front 53

Cognitive maps:

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graphic depictions of how managers believe environmental factors relate to possible organizational actions.

Front 54

Internal environment:

Back 54

the trends and events within an organization that affect management, employees, and organizational culture.

Front 55

Internal environment:

Back 55

the trends and events within an organization that affect management, employees, and organizational culture.

Front 56

Organizational culture:

Back 56

the set of key values, beliefs, and attitudes shared by organizational members.

Front 57

Organizational culture:

Back 57

the set of key values, beliefs, and attitudes shared by organizational members.

Front 58

Organizational stories:

Back 58

stories told by members of an organization to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

Front 59

Organizational stories:

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stories told by members of an organization to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

Front 60

Organizational heroes:

Back 60

people admired for their qualities and achievements within an organization.

Front 61

Organizational heroes:

Back 61

people admired for their qualities and achievements within an organization.

Front 62

Company vision

Back 62

a company’s purpose or reason for existence.

Front 63

Company vision

Back 63

a company’s purpose or reason for existence.

Front 64

Consistent organizational culture:

Back 64

a culture in which the organization actively defines and teaches values, beliefs, and attitudes. These are sometimes also called “strong cultures.”

Front 65

Consistent organizational culture:

Back 65

a culture in which the organization actively defines and teaches values, beliefs, and attitudes. These are sometimes also called “strong cultures.”

Front 66

Behavioral addition:

Back 66

the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

Front 67

Behavioral addition:

Back 67

the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

Front 68

Behavioral substitution:

Back 68

the process of having managers and employees perform new behaviors central to the “new” organizational culture in place of behaviors that were central to the “old” organizational culture.

Front 69

Behavioral substitution:

Back 69

the process of having managers and employees perform new behaviors central to the “new” organizational culture in place of behaviors that were central to the “old” organizational culture.

Front 70

Visible artifacts:

Back 70

visible signs of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks like stock options, personal parking spaces, or the private company dining room.

Front 71

Visible artifacts:

Back 71

visible signs of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks like stock options, personal parking spaces, or the private company dining room.