External Environments
What are external environments?
The forces and events outside a company that have the potential to influence or affect it.
True or False? Socio cultural changes in behavior, attitudes, and beliefs affect the demand for business' products and services.
True.
What are the components of a specific environment?
Customers, competitors, suppliers, industry regulation, and advocacy groups.
What is the process of scanning the environment for the important events or issues that might affect an organization?
Environmental Scanning
What is the internal environment?
Trends and events within an organization that affect the management, employees, and organizational culture.
What are the two kinds of environmental change and the two kinds of environmental complexity?
Change: Stable & Dynamic
Complexity: Simple & Complex
What are the four components of general environment?
Economy, Technological, Sociocultural, and political/legal components.
What are product boycotts?
Advocacy groups that try to persuade consumers not to buy a product.
What are the 3 step process of making sense of changing environments?
1. Environmental scanning
2. Interpreting environmental factors
3. Acting on threats and opportunities
What are the three levels of organizational culture?
1. Seen
2. Heard
3. Believed
What is resource scarcity?
The abundance or shortage of critical organizational resources in an organizations external environment.
What is technology?
The knowledge, tools, and techniques used to transform inputs into outputs
What is reactive consumer monitoring?
Addressing customer trends and problems after they occur.
Who is the best professor at WU?
Professor Burdiek.
What is a company's purpose or reason for existing?
Company's Mission
What three factors affect uncertainty?
environmental change, environmental complexity, and resource scarcity.
What do managers use to predict the future economy?
Business confidence indices.
What is supplier dependence?
The degree to which a company relies on a supplier because of the importance of the suppliers product to the company.
What is an advantage to interpreting environmental factors?
It helps managers to keep tabs on competition.
What is a primary source of organizational culture?
What is the punctuated equilibrium theory?
The process of companies that go through long periods of stability, followed by short complex dynamic periods of change.
What is the best way to manage legal responsibilities in organizations?
To educate managers and employees about law and regulations and potential lawsuits that could affect a business.
What is opportunistic behavior?
A behavior in which one party benefits at the expense of the other. Usually due to high degrees of buyer and seller dependence.
Why is environmental scanning important?
Because it contributes to organizational performance and helps to detect environmental changes and problems before they become a crisis.
What is consistent organizational culture?
The company actively defining and teaching organizational values, beliefs, and attitudes.