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26 Cards in this Set

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  • Back
Environment:
the set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources.
Organizational domain:
the particular range of goods and services that the organization produces and the customers and other stakeholders whom it serves.
Specific environment:
the forces from outside stakeholder groups that directly affect an organization's ability to secure resources. Includes: customers, distributors, unions, competitors, suppliers, and government.
General environment:
the forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources. Includes: demographic & cultural forces, international forces, political forces, technological forces, economic forces, and environmental forces.
Sources of uncertainty in the environment:
Complexity - the strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

Dynamism - the degree to which forces in the specific and general environments change quickly over time and, thus, contribute to the uncertainty an organization faces.

Richness - the amount of resources available to support an organization's domain.
Resource dependence theory:
argues that the goal of an organization is to minimize its dependence on other organizations for the supply of scarce resources in its environment and to find ways of influencing them to make resources available.
Symbiotic interdependencies:
exist between an organization and its suppliers and distributors.
Competitive interdependencies:
exist among organizations that compete for scarce inputs and outputs.
Reputation:
a state in which an organization is held in high regard and trusted b other parties because of its fair and honest business practices.
Co-optation:
a strategy that manages symbiotic interdependencies by neutralizing problematic forces in the specific environment.
Interlocking directorate:
a linkage that results when a director from one company sits on the board of another.
Strategic alliance:
an agreement that commits two or more companies to share their resources to develop joint new business opportunities.
Networks:
a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy of authority.
Keiretsu:
a group of organizations, each of which owns shares in the other organizations group, that work together to further the group's interests.
Joint venture:
a strategic alliance among two or more organizations that agree to jointly establish and share the ownership of a new business.
Strategies for managing symbiotic resource interdependencies:
Reputation
Co-optation
Strategic alliance
Lont-term contracts
Networks
Minority ownership
Joint venture
Merger and takeover
Strategies for managing competitive resource interdependencies:
Collusion & cartels (illegal in US)
Third-party linkage mechanism
Strategic alliances
Merger and takeover
Collusion:
a secret agreement among competitors to share information for a deceitful or illegal purpose.
Cartel:
an association of firms that explicitly agree to coordinate their activities.
Third-party linkage mechanism:
a regulatory body that allows organizations to share information and regulate the way they compete.
Transaction costs:
the costs of negotiating, monitoring, and governing exchanges between people.
Transaction cost theory:
a theory that states that the goal of an organization is to minimize the costs of exchanging resources in the environment and the costs of managing exchanges inside the organization.
Sources of transaction costs:
Environmental Uncertainty and bounded rationality
Opportunism and small numbers
Risk and specific assessment
Specific asset:
investments - in skills, machinery, knowledge, and information - that create value in one particular exchange relationship but have no value in any other exchange relationship.
Bureaucratic costs:
internal transaction costs.
Outsourcing:
the process of moving a value creation activity that was performed inside an organization to outside where it is done by another company.