mgmt ch 3
Acquisition
occurs when one firm buys another, sometimes against its will (hostile takeover)
Merger
occurs when two or more firms combine to form a new firm Example: delta merged with northwest airlines
Competitors
An organization that competes with other organizations for resources
Suppliers
An organization that provides resources for other organizations
Regulators
A unit that has the potential to control, legislate, or otherwise influence the organizations policies and practices 2 important kinds of regulators Regulatory agencies An agency created by the government to regulate business activities Interest groups A group organized by its members to attempt to influence business
importance of culture
Can make or break a company It can shape the firm's effectiveness and long term success, and increase productivity Determines the feel of the organization
Environmental turbulence
Consists of changes in the environment which may or may not be expected Some organisations have developed a crisis team and or plan Example: 9/11, crisis (most common), oil field spills
determinants of culture
Develops and blossoms over a long period of time, usually starting with the founder of the organization Example: Chick-fil-A religious and belief that the consumer knows Adaptations and growths of a company, the culture is modified, shaped and refined by symbols, stories, heroes, slogans, and ceremonies
Board of directors
Governing body elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders interests
Technological dimension
Is the methods available for converting resources into products or services Examples: kiosks in exchanging for having to wait in line
Employees
Issues includes: A workforce becoming increasingly diverse in Gender, ethnicity, age, and other dimensions Increased reliance on "temp" workers Labor unions add a complex layer
changes in diveristy/culture
More women in the labor force Minorities in labor force Hiring and promoting the most talented people available Legislation and judicial decisions making organizations hire more broadly average age increasing
managing organizational culture
Must understand the current culture and decide whether it should be maintained or changed Can be maintained by rewarding and promoting people whose behaviors are consistent with the existing culture and by articulating the culture through its slogans, ceremonies, and so forth. Need to watch for changes in the growth or mergers of company culture Shape culture by bringing in outsiders into important managerial positions
Strategic partners (strategic allies)
Organizations that work together with one or more other organizations in a joint venture or similar arrangement
Physical work environment
Plays an important role in setting a "tone" for a company. Most today have workstations clustered together in one large room Issues include: Location, design, and layout
ethnicity
The ethnic composition of a group or organization
Organization Culture
The set of values, beliefs, behaviors, customs, and attitudes that helps the members of the organization understand what it stands for, how it does things, and what it considers to be important Defies objective measurement or observation yet is the foundation of the internal environment
Owners
Whoever can claim property rights to an organization
Customers
Whoever pays money to acquire an organization's products or services
uncertainty
a driving force that influences many organizational decisions
Glass ceiling
a perceived barrier in some organizations that keep women from advancing to top management positions
boundary spanner
an employee, who spends much of his or her time in contact with others outside the organization Example: sales man
culture
another factor of internal work environment
Internal environment
consists of conditions and forces within the organization
Information management
especially important when forming an initial understanding of the environment and when monitoring the environments for signs of change
External Environment
everything outside an organization's boundaries that might affect it 2 separate external environments: The general environment The task environment
diversity
exists in a group or organization when its members differ from one another along one or more important dimensions, such as age, gender, or ethnicity Diversity in the business world usually refers to demographic differences among people within a culture
task environment
specific organizations or groups that influence an organization
multiculturalism
the broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures
Sociocultural dimension
the customs, mores, values, and demographic characteristics of the society in which the organization functions Examples: pay premium prices for designer clothes
threat of substitute products
the extent to which alternative products or services may supplant or diminish the need for existing products or services
International dimensions
the extent to which an organization is involved in or is affected by business in other countries
power of buyers
the extent to which buyers of the products or services in an industry can influence the suppliers
the threat of new entrants
the extent to which new competitors can easily enter a market to market segment
power of suppliers
the extent to which suppliers can influence potential buyers
The degree of homogeneity
the extent to which the environment is relatively simple or relatively complex
The rate of change
the extent to which the environment is relatively stable or relatively dynamic
Political-legal dimension
the government regulation of business and the relationship between business and government
competitive rivalry
the nature of the competitive relationship between dominant firms in the industry
Economic dimension
the overall health and vitality of the economic system in which the organization operates
Environmental scanning
the process of actively monitoring the environments through activities such as observation and reading Strategic responses Maintaining the status quo Altering strategy a bit Adopting an entirely new strategy
General environment
the set of broad dimensions and forces in organizations surroundings that create its overall context
The five competitive forces
the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers