MADM 760 Exam 2 Chapter 3 and Chapter 4

what are the macroenivornmental forces?

first, political-legal forces second, economic & ecological forces third, social forces fourth, technological forces.

What are some examples of societal values?

freedom, fairness, free enterprise, and equality of opportunity

The World is Flat (Thomas Friedman, 2005) is about analyzing ____?

globalization

In the US traditional societal values include what?

individual freedom, fairness, free enterprise, and equality of opportunity

What/who do macroenvironmental forces affect?

industries and individual forms within industries, except the focus is on the industry.. not the individual forms

Internal Environment refers to inside or outside factors?

inside the organization.

When the U.S. dollar is weak (or declines in value), U.S. exports become ___ expensive but U.S. imports become ____ expensive (therefore, U.S. manufacturers tend to limit purchases from foreign sources), at least in the short run.

less more

How many Electronic commerce categories are there total?

5

Define Recession

A period of declining real GDP, accompanied by lower real income and higher unemployment.

What is an example of commodization?

Digital cameras, since there are so many different businesses selling cameras, commodization is seen since industry might spend more to enhance the product

Define interest rate

Amount of money paid per unit of time- written as the percentage of the amount borrowed

What is B2B?

Business to business

B2C

Business to consumer

What is commodization?

Commodization refers to the increasing difficulty that firms have distinguishing their products and services from those of their competitors

C2B

Consumer to business

C2C

Consumer to consumer

Social Forces Case #1 Eating Habits?

Consumers "super size" at record raters while demanding foods.

Contrary to early expectations, the Internet has not always generated greater profits for businesses.

Consumers have benefitted immensely

"leveling the playing field,"

During the dot-com bubble of the late 1990s, telecommunications firms laid fiber optic cables across the oceans to connect the U.S. with China and India. Since the dot- com bust, these cables have provided high quality, low cost contact with developing nations, "leveling the playing field."

What are ecological forces?

Ecological influences are part of the economic environment because they can change cost structures in entire industries.

What are economic forces?

Economic forces include factors such as GDP and recession, inflation rates, interest rates, and exchange rates.

What are the forms of electronic commerce?

Electronic commerce activities can be broken down into five categories. B2B B2C C2B C2C B2G

managers must rely on what to monitor external and internal forces?

Environmental Scanning

What is the environmental scanning?

Environmental Scanning is the systematic collection and systematic analysis of information about relevant macroenvironemntal trends, or external environmental trends.

Cassandra talked to her customers to accommodate her salon to demands, also due to the economy struggles, she made sure to monitor her finances to align with what customers were willing to pay. She also researched other local companies to make sure her prices were reasonable. Is this internal or external forces being changed?

External

Can you define macroenvironmental forces?

External environmental forces

Macroenvironmental forces are assesed in terms of their direct effects on a particular firm. true or false?

False, they are assesed by the effect they have on an entire industry.

An example of an ecological force if electricity increases due to environmental changes?

For example when the electricity price goes up or gas price goes up because of environmental changes, the cost of doing business will also be increased.

Surprisingly, a recession may actually help some industries. What is an example?

Funeral homes, hospitals, and sanitizers/disinifecting companies.

Economic downturn would affect what industries?

Hotel andWha tourism industry

What is dimension 4 of strategic management?

Interactivity, this means that consumers share their experiences about products and services with other customers in social media or chat rooms.

Tanning Salon example, Cassandra removed the manager, created a new mission, got to know the new employees. Is this internal or external change?

Internal Change

What is Dimension 2?

Internet as a distribution channel, This means that customers can actually buy various items online, many items can be distributed.

What is SWOT analysis in environmental scanning?

It is the analysis of a company considering strengths, weaknesses, opportunities, and threats. Managers will look first internally, then externally, managers will allow the manager to determine what steps to take to either change or maintain the company

P.E.S.T Mnemonic for External Environmental Forces?

P Political-Legal E Economic and Ecological S Social Forces T Technological

Forms of electronic Commerce

Many traditional firms are integrating e-commerce into their existing business models, a combo known as click and bricks

Dimension 1 of strategic management upon the internet?

Movement towards information symmetry. It means that the internet has helped buyers gain a fair amount of information about products or services before they purchase them.

What is an example of mass customization?

Nike allowing people to customize their shoes like colors, unique design, etc.

Define inflation rate

Percentage increase in the average price level of goods and services from one month to the next.

What kind of force is this an example of based off the macroenvironmental forces PEST? When the Massachusetts state legislature passed a bill in 2006 to require that businesses provide health insurance for its workers, all firms operating in the state were affected.

Political-Legal Force

What kind of force is this an example of based off the macroenvironmental forces PEST? When the U.S. Supreme Court ruled in 2007 that the Clean Air Act applies to car and truck carbon dioxide emissions, carmakers knew immediately that higher federal fuel economy standards were likely forthcoming.

Political-Legal Force

What is Dimension 5 for strategic management?

Potential for cost reductions and cost shifting. Example, the internet provides businesses with opportunities to minimize their costs. For example, these days we purchase many things such as cosmetics, clothes, and even furniture. These items may not need to have off-line stores anymore, which reduce their operating costs significantly.

What are social forces?

Social forces include such factors as a societal values, trends, traditions, religious practices. and convert for environment

Societal values refers to concepts and beliefs that members what?

Societal values refer to concepts and beliefs that members of a society tend to hold in high esteem.

What are some examples Social Forces?

Societal values, trends, traditions, religious practices, concern for the environment

Dimension 3 of strategic management?

Speed, for example the intern improves the speed of transactions when purchasing a product.

internal environment factors include?

Style of Leadership, mission statement, organizational activity, employment behavior, and culture

Define GDP (Gross Domestic Product)

The value of the total number of goods and services produced in a country in a given time period (normally one year).

Certain forces are more prominent in some industries than in others. What is an example?

Technological forces

What are technological forces?

Technological forces include such factors as a scientific improvements, scientific innovations, and internet.

Define Technological Force?

Technological forces include: Scientific improvements Scientific innovations Internet

What is mass customization?

The ability to individualize product and service offerings to meet specific buyer needs.

What are the strategic dimensions of the internet?

The internet has influenced many aspects of business, including strategic management.

The title, "The World Is Flat." is a metaphor for viewing the world?

The metaphor represents viewing the world as a level playing field in terms of commerce?

Environmental Scanning is what? Who does this?

The monitoring of the org. internal and external environments for early signs that a change may be needed. Managers!

What are societal values?

The societal values are the concepts and beliefs that members of a society tend to hold in high esteem.

AI was summarized to be things that we work with, we utilize, and objects that we will work alongside in the future. True or False?

True

China manufactures more than 85 % of US toys. True or False.

True

Remember that the focus at this stage of analysis is on the industry, not the individual firms. True or False?

True

macroenvironmental forces are NOT assesed in terms of their direct effects on a particular firm, but in the entire industry. True or false?

True

Coronavirus video summary?

Video is about national impact due to coronavirus. Economic disaster more than health disaster.

Strengths must combat its

Weaknesses

Before the internet, the information was symmetric or asymmetric?

asymmetric

B2G

business to government

External Environment is often outside factors that include?

customers, competition, the economy, technology, political conditions, and resources

Video is about saving money, 6-12 months of money and living expenses should be saved always.

damn

U.S. manufacturers tend to limit purchases from foreign sources when the dollar is decline or increased?

dollar is decreased

What are political-legal forces?

politcal-legal forces include factors such as outcomes of elections, legislation, judicial court decisions, and government agency activity.

A nation's economy is considered to be in a ____ when GDP declines for two consecutive quarters.

recession

Think of the ____ as an industry that is being affected by the waves that are the multiple forces.

ship

Economic downturn will severely affect the hotel and tourism industry, while __ __ will affect the IT industry more than any other industry.

technological forces

Macroenvironmental forces affect industries and individual firms within industries?

the focus at this stage of analysis is on the industry, not the firm.

Define exchange rate

the price of one currency in terms of another

External Factors are often outside of the control of the company true or false?

true

U.S. dollar is strong (or increases in value), U.S. manufacturers tend to make more purchases from foreign sources. true or false?

true