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Flashcards in Chapter 3 Deck (64):
1

The external environment consist what environments?

General environment, and Task environment

2

General Environment consists of

Economic, legal, political, socio-culture, international, and technical forces (everything outside an organization's boundaries

3

Task Environment

Specific groups and organizations that affect the firm

4

Internal Environment

Conditions and forces present and at work within an organization

5

Definition of General Environment

The set of broad dimensions and forces in an organization's surroundings that create its overall context

6

Economic dimension

the overall health and vitality of the economic system in which the organization operates

(is inflation going up?)

7

Technological dimension

the methods available for converting resources into products or services

(keeping up with technology)

8

Sociocultural dimension

includes the customs, mores, values, and demographic characteristics of the society in which the organization functions

(change in demographics)

9

Political-legal dimension

the extent of government regulation of business and the general relationship between business and government

(if police tells you what to do)

10

International dimnesion

extend to which the organization is affected by business in other counties

11

Specific groups affecting the organization in a task environment

Competitors seeking the same resources as the organization, customers who acquire an organization's products or resources, suppliers that provide resources for the organization, regulators that control, legislate, or influence the organization's policies or practices, strategic partners (allies) who are in a join venture or partnership with the organization

12

Regulatory agencies

created by government (EPA, EEOC, etc.)

13

Interest groups

organized by members (MADD, NOW, etc.)

14

Conditions and stakeholder forces within an organization for internal environment

Owners, board of directors, employees, physical work environment

15

Owners

are persons with legal property rights to a business

16

Board of directors

are elected by the stockholders and are charged with overseeing the general management of the firm to ensure that it is run in a way that best serves the stockholders'

17

Employees

people who work for the firm and have a vested interest in its continued operation and existence

18

Physical work environment

is the actual physical environment of the organization and the work that people do

19

When you describe the company you are talking about what kind of environment?

Internal environement

20

The importance of organization culture

culture determines the overall "feel" of the organization, although it may vary across different segments of the organization,
culture is a powerful force that can shape the firm's overall effectiveness and long-term success

21

Determinants of organizational culture

organization's founder (personal values and beliefs),
symbols, stories, heroes, slogans, and ceremonies that embody and personify the spirit of the organization,
shared experiences that bond organizational members together, corporate success that strengthens the culture

22

What distinguishes the company?

Culture

23

What is important for the organization's culture?

Socialization

24

What can cause a person to be attracted to a company as well as cause a person to leave?

Culture

25

How can you change a companies culture?

Bring in outsider, or merge acquisition

26

Managing organizational culture

understand the current culture to understand whether to maintain or change it,
articulate the culture through slogans, ceremonies, and shared experiences,
reward and promote people whose behaviors are consistent with desired cultural values

27

Changing organizational culture

develop a clear idea of what kind of culture you want to create,
adopt new slogans, stories, and purposely break with tradition (not gonna change culture),
bring in outsiders to important managerial positions

28

What are culture components?

observable artifacts, espoused values, basic underlying assumptions

29

observable artifacts

are the manifestations of an organization's culture that employees can easily see or talk about

30

examples of observable artifacts

symbols, physical structures, language, stories, rituals, ceremonies

31

exposed values

are the beliefs, philosophies, and norms that a company explicitly states

32

basic underlying assumptions

are taken for granted, beliefs that are so ingrained that employees simply act on them

33

How do environments affect organizations?

Change and complexity, environmental turbulance

34

Change and complexity involves?

environmental change, unceratinty

35

Environmental change occurs in what 2 ways?

Degree to which change in environment is occurring, degree of homogeneity or complexity of the environment

(change and complexity)

36

Uncertainty

a driving force that influences organizational decisions

(change and complexity)

37

Environmental tubulence

unexpected changes and upheavals in the environment of an organization

38

The more change that happens outside a company causes what?

Makes the company have to change

39

Example of least uncertainty

Subway because the menu is usually always the same. It is simple and stable

40

Example of moderate uncertainty

Car shops (complex, stable), clothing shops (simple, dynamic)

41

Examples of most uncertainty

Apple because we do not know what to expect. It is complex and dynamic

42

Porter's five competitive forces

Threat of new entrants,
Competitive rivalry,
Threat of substitute products,
Power of buyers,
Power of suppliers

43

Threat of new entrants

extend to and ease with which competitors can enter market

(know your competitors)
(Porter's Five Competitive Forces)

44

Competitive rivalry

competitive rivalry between firms in an industry

(have to know what's happening)
(Porter's Five Competitive Forces)

45

Threat of substitute products

extent to which alternative products/services may replace the need for existing products/services

(Porter's Five Competitive Forces)

46

Power of buyers

extent to which buyers influence market rivals

(Porter's Five Competitive Forces)

47

Power of suppliers

extent to which suppliers influence market rivals

(Porter's Five Competitive Forces)

48

Information Management in Organizations

boundary spanner, environmental scanning, information systems

49

Boundary spanner

an employee who accumulates information through contacts outside the organizaton

50

Environmental scanning

is the process of monitoring the environement

51

Information systems

summarize and deliver information in a form pertinent to a manager's needs

52

Strategic Response

Maintaining the status quo, altering the current strategy, or adopting a new strategy

53

Mergers, Acquisitions, Alliances

Firms combine (merge), purchase (acquisition), or form new venture partnerships or alliances

54

Acquisition

Large company takes over smaller company

55

How do organizations respond to their environments?

Information Management in Organizations, Strategic Response, Mergers, Acquisitions, Alliances, Organizational Design and Flexibility, Direct Influence of the Environment

56

Organizational Design and Flexibility

Adapting by building flexibility into structural design, such as mechanistic firms and organic firms

57

Direct Influence of the Environment

Attempting to change the nature of the competitive conditions in its environment to suit its needs, pursuing new or changed relationships with suppliers, customers, and regulators

58

Mechanistic firms

Operate best in a stable environment
Ex: car company

59

Organic firms

Best suited for dynamic environments
Ex: technology, biochemical

60

Models of organizational effectiveness (ways to measure success)

systems resource, internal process, goal, and strategic constituencies approach

61

Systems Resource Approach

focuses on acquiring inputs

62

Internal Processes Approach

focuses on the transformation processes (production efficiencies)

63

Goal Approach

focuses on outputs (achieving organizational goals)

64

Strategic Constituencies Approach

focuses on feedback (satisfying stakeholders)