Management: Chapter 3 Vocab

Strategic issues

"events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives"

2 key ideas of cultural leadership

- The cultural leader articulates a vision for the organizational culture that employees can believe in - the cultural leader heeds the day-to-day activities that reinforce the cultural vision

symbol

- object, art, or event that conveys meaning to others - rich, nonverbal language

culture

- set of key values, beliefs, understandings, and norms shared by members of an organization - pattern of shared values and assumptions about how things are done within the organization

Possibility of new substitutes

- what other options do customers have to satisfy their needs/want for the product they buy from us? currently today: people will find what they/re looking for and end up buying it cheaper from amazon, also easily accessable

Competitive environment

5 forces Developed by Michael Porter

Global sector/environment

??

Backward integrated

A customers ability to make their own versions of certain products a company might have Walmart - better possibility of this compared to a plane manufacturer

Power of competitors

Company's ability to compete successfully with other companies Walmart-target-kmart

Demographic dimension

Composition of population, age, gender, race

Trends

Consumer preferences

Barriers to entry

Factor that makes it harder for new competitors to enter the industry Lower barriers to entry- easy for a new company to form (restaurants)

Threat of new entrants

How easy is it for potential new competitors to take the company's customers Barriers to entry- lower=restaurants, high= airplane manufacturing

Opportunities and threats

Opportunity: ability to ass new products to the market Threat: when current trends are negatively affecting current products/ markets

Forces of the competitive environment

Power of Competitor Power of Customers Power of Suppliers Threat of new entrants Possibility of substitutes

Possibly of substitutes

What other options do customers have to satisfy their need/want for the product they buy from us Car- other options are public transportation, bikes, rentals, Uber Plane tickets- train, drive Movie theater-netflix, bowling, read

Power of customers

Who holds the balance? Many or few customers? With many, they have little power to change things within a company, but with few customers have greater power

Power of suppliers

Who holds the power? Many or few suppliers? With many- the company holds the power With few- the suppliers hold the power

high-performance culture

a culture that is based on a solid organizational mission or purpose, embodies shared adaptive values that guide decisions and business practices, and encourages individual employee ownership of both bottom-line results and the organization's cultural backbone

competitive intelligence

activities to get as much information as possible about one's rivals

4 categories/types of culture

adaptability, achievement, involvement, and consistency

general environment

affects organizations indirectly

Organizational environment

all elements existing outside the boundary of the organization that have the potential to affect the organization

natural dimension

all elements that occur naturally on Earth, including plants, animals, rocks, and resources such as air, water and climate

task environment

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

Power of Competitors

companys ability to compete successfully

Whats included in the external environment

competitors, resources, technology, and economic conditions

Dimensions/sectors of the task environment

competitors, suppliers, customers, and the labor market

What is the internal environment composed of?

composed of current employees, management and corporate culture

cultural leader

defines and uses signals and symbols to influence corporate values

overcommunicate

defines and uses signals and symbols to influence corporate values

internal environment

elements within the organization's boundaries

adaptability culture

emerges in an environment that requires fast response and high risk decision making

hero

figure who exemplifies the deeds, character, and attributes of a strong culture

2 components of the external environment

general and task

economic dimension

general economic health of a country or region in which the organization operates Incomes, unemployment, inflation

legal-political dimension

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

Threats of new entrants

how easy is it for potential new compeitiors to take the companys customers - high or low barriers to entry restaurants

just-in-time (JIT)

improves an organization's return on investment , quality, and efficiency because much less money in invested in idle inventory

involvement culture

internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment

Boundary-spanning roles

link to and coordinate the organization with key elements in the external environment

Uncertainty

managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes

story

narrative based on true events and is repeated frequently and shared among organizational employees

supply chain

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

merger

occurs when two or more organizations combine to become one

competitors

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

customers

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

labor market

people in the environment who can be hired to work for the organization

ceremony

phrase or sentence that succinctly expresses a key corporate value

slogan

phrase or sentence that succinctly expresses a key corporate value

suppliers

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

sociocultural dimension

represents the demographic characteristics as well as the norms, customs, and values of the general population Changes in patterns of thought/behavior in a society

business intelligence

results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant example: Verison

technological dimension

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

Dimensions/sectors of the general environment

socialcultural, economic, legal-political, demographic, natural, global and technological factors

joint venture

strategic alliance or program by two or more organizations

achievement culture

suited to organizations concerned with serving specific customers in the external environment, but without intense need for flexibility and rapid

organizational ecosystem

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

consistency culture

uses an internal focus and a consistency orientation for a stable environment

Power of Customers

who holds the power? many or few customers many--> company holds the power, but if few, customers hold the power