Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
16 Cards in this Set
- Front
- Back
|
Organisations are open-systems. What does this mean? How does it interact with its environment? |
Organisations affect their environment and organisations get affected by the business environment Organisations takes inputs to make outputs. |
|
|
What 3 environments that can be described around an organisation? Why are they each important? |
Outside: You look for opportunities and threats to make strategies based on those. Macro-environment Competitive environment Inside: You look at the strengths and weaknesses within the company to improve Internal environment |
|
|
Why is it important to know your environment as a manager? |
It should influence your strategic choices. You analyse it and make decisions to be able to implement strategy (strategic management) What is strategy? Plans and actions to accomplish long-term objectives and performance |
|
|
Macro-environment = PESTEL What does PESTEL stand for? |
Political: policy, regulations - elections - political (in)stability Economic indicators - inflation rate - interest rate - unemployment rate Social and socio-demographic - gender issues - immigration - population growth Technology - advances Ecology - climate change - (non) availability of natural resources Legal - intellectual property rights - tax laws |
|
|
How is the competitive environment looked at? |
With the five forces model by Michael Porter that pays attention to five competitive forces. Determine the level of competition --> profit potential rivals firms suppliers new entrants customers substitutes and complements |
|
|
Who are the rival firms and new entrants? |
Rival firms = firms that compete for the same customers and try to gain market share New entrants = organisations that have recently entered the same market or industry |
|
|
What are substitutes and complements? Are they threats or opportunities? |
Substitute = alternative product or service performing the function --> potential threat (create your own) Complement = product or service that is used with one or more other products or services --> valuable complements may offer potential (cross-selling) |
|
|
What are suppliers? What is supply chain management? When does the supplier have power over customers? 4 reasons |
Supplier = provides inputs/resources needed for production Supply chain management = management of acquisition of materials, their transformation into products, and distribution of products to customers 1. buyer's alternatives are limited 2. few suppliers 3. product is distinctive 4. switching costs are high |
|
|
What are customers? What can the customers demand? 4 things When is the buyer's power high? |
Customers are people that are in the market to buy the product (B2B or B2C) They can demand: 1. lower prices 2. higher quality 3. unique product specifications 4. better service Power of buyer high when: - has alternatives - has lowering switching costs - buys large part of a firm's output |
|
|
Porter's five forces can be a tool for environmental analysis |
slide 18: When is each competitive force attractive and unattractive? |
|
|
Information on environment is key. Otherwise organisation face environmental uncertainty. What is that and what are the 2 reasons? |
Environmental uncertainty = lack of information, needed for understanding or predicting the future - Environmental complexity (spectrum: simple to complex) = the number of issues that the organisation must face - Environment dynamism or change (spectrum: stable to dynamic/unstable) = the degree of sudden change within environment, and possible effect on organisation |
|
|
What would be the response to environment uncertainty? |
The organisation needs methods to collect and interpret information Environmental scanning = searching for information about the environment, detecting emerging trends, sorting that information and interpreting what is important key form: competitive intelligence = information on competitors that helps managers determine how to compete better |
|
|
What are 3 things the organisation can do with the information they gathered from environmental scanning? |
Scenario development = narrative or view of what future is likely to be Best-case scenario Worst-case scenario Middle-ground alternative Forecasting method (using software) for predicting how variables (e.g. sales) will change in the future --> information --> decision making Benchmarking comparing organisation with best practices. 'Learning from the best in class' ex. recruiting talent, increasing market share, ... |
|
|
What is it called when a company changes the environment it's in? What are the 5 ways to do it? |
Strategic manoeuvring = an organisation's conscious efforts to change the boundaries of its environment 5 ways: Domain selection = entrance to new market or industry with existing expertise Diversification = when a firm invests in different product business or geographic area Merger = two or more companies combining into a new legal entity Acquisition = purchase of a firm by another firm Divestiture = firm selling off one or more businesses |
|
|
What is organisational culture? When is it strong or weak? |
Organisational culture = shared values, principles, practices, traditions, ways of doing things in attaining organisation's goals (expectations and norms) slide 29 |
|
|
What is organisational climate? |
Organisational climate = represents staff perceptions of the impact of the work environment on the individual |
