business management chapter 3-1

The federal government influences organizations through:

OSHA, EPA, fair trade practices, libel statutes allowing lawsuits against business, consumer protection and privacy legislation, product safety requirements, import and export restrictions, and informational and labeling requirements

competitors

Organizations in the same industry or type of business that provide goods or services to the same set of customers

customers

Those people and organizations in the environment that acquire goods or services from the organization

A new view of the environment argues that organizations are now evolving into:

business ecosystems

Labor market represents people in the environment who:

can be hired to work for the organization

task environment is:

closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance

The external environment includes:

competitors, resources, technology, and economic conditions that influence the organization

task environment is generally considered to include:

competitors, suppliers, customers, and the labor market

Internal environment is composed of:

current employees, management, and especially corporate culture, which defines employee behavior in the internal environment and how well the organization will adapt to the external environment

Consumer purchasing power, the unemployment rate, and interest rates are part of an organization's:

economic environment

The U.S. political system:

encourages capitalism, and the government tries to not overregulate business

international dimension of the external environment includes:

events originating in foreign countries as well as new opportunities for U.S. companies in other countries

The pay ratio measure means companies will have to:

explain large pay disparities to shareholders and face public scrutiny of their pay practices

Governments are increasingly under pressure to:

explaining their performance on pollution control and natural resource management

Some industries have failed to adapt to technological shifts and are:

facing decline

Organizational ecosystem is a system:

formed by the interaction among a community of organizations in the environment

Changes in federal regulations or an economic recession and shifting social attitudes towards matters such as how and where the products we use are made are part of the organization's:

general environment (do not directly change day-to-day operations, but they do affect all organizations eventually)

Important sociocultural characteristics are:

geographical distribution and population density, age, and education levels

Influence on managers to meet needs in the natural environment may come from other sectors, such as:

government regulation, consumer concerns, the media, competitors' actions, or even employees

The legal-political dimension includes:

government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior

the natural dimension of the external environment is:

growing in importance

General environment affects organizations:

indirectly

The natural dimension is different from other sectors of the general environment because:

it has no voice of its own

As one of the numerous federal regulations included in this act, the Securities and Exchange Commission (SEC) in 2015 approved a rule requiring that:

large public companies disclose pay gap between their CEOs and rank-and-file employees

Organizations have to be responsive to:

marketplace changes

Managers in many companies work closely with:

national lawmakers, educating them about products and services and legislation's impact on their business strategies

supply chain

network of multiple businesses and individuals that are connected through the flow of products or services

The international environment provides:

new competitors, customers, and suppliers and shapes social, technological, and economic trends as well

The SEC's action creates uncertainty for companies over how the requirement will influence:

not only shareholders and public opinion, but their own managers and employees

The natural dimension includes all elements that:

occur naturally on earth, including plants, animals, rocks, and resources such as air, water, and climate

An ecosystem includes:

organizations in all the sectors of the task and general environments that provide the resource and information transactions, flows, linkages necessary for an organization to thrive

The external organizational environment includes all elements existing:

outside the boundary of the organization that have the potential to affect the organization

By understanding these profiles and addressing them in the organization's business plans, managers:

prepare their organizations for long-term success

suppliers

provide the raw materials that the organization uses to produce its output

government laws specify:

rules of the game

technological dimension of the general environment includes:

scientific and technological advancements in a specific industry, as well as in society at large

general environment is generally considered to include:

social, economic, legal-political, international, natural, and technological factors that influence all organizations equally

In response to pressure from environment advocates, organizations have become increasingly sensitive to:

the Earth's diminishing natural resources and the environmental impact of their products and business practices

sociocultural dimension of the general environment represents:

the demographic characteristics, norms, customs, and values of the general public

Because organizations today are operating in a global environment:

the economic dimension has become exceedingly complex and creates enormous uncertainty for managers

As an open system, the organization draws resources from:

the external environment and releases goods and services back to it

the economic dimension represents:

the general economic health of the country or region in which the organization operates

As recipients of the organization's output, customers are important because:

they determine the organization's success

the external environment does not include:

those events so far removed from the organization that their impact is not perceived

Today's demographic profiles are the foundation of:

tomorrow's workforce and consumers

Changes in the various sectors of the general and task environments can create:

tremendous challenges, especially for organizations operating in complex, rapidly changing industries

The organization also has an internal environment; includes the elements:

within the organization's boundaries

Managers may want to consider how the following sociocultural trends are changing the consumer and business landscape:

- A new generation of technologically savvy consumers has intimately woven technology into every aspect of their lives - Young people are also leading the trend toward widespread social equality - The most recent U.S. census data show that more than half of all babies born in 2011 were members of minority groups

The dimensions of the general environment include:

- international - technological - sociocultural - economic - legal-political - natural

The organization's external environment can be conceptualized further as having 2 components:

- task environment - general environment

Executive pay practices became a concern during:

- the recent mortgage crisis; the issue of income inequality has also become a topic of divisive political debates

One of the most prominent and far-reaching challenges in the legal-political dimension in recent years was the

2010 Dodd-Frank Act (financial regulatory reform)

The general environment indirectly influences all organizations within an industry and includes:

5 dimensions