Management Ch 3
Uncertainty
is how well managers can understand r predict the external changes and trends affecting their businesses
Supplier dependence
is the degree to which a company relies on supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that prduct
Buyer dependence
is the degree to which a supplier relies on buyer because of the importance of that buyer to the supplier and the difficulty of selling its products to other buyers
The general environment consists of
the economy and the technological, sociocultural, and political/legal trends that indirects affect ll organization
Environmental Complexity
the number of external factors in the environment that affect organizations
Environmental Change
the rate at which a company's environments change
dynamic environments
the rate of environmental change is fast
Stable environments
the rate of environmental change is slow
Managers must be...
educated about the laws, regulations, and potential lawsuits that could affect business
Competitive analysis
-Deciding who your competitors are -Anticipating competitors' moves -Determining competitors strengths and weaknesses
Sociocultural components
-Demographic changes -Changes in behavior, attitudes, and beliefs
Growing Economy
-More people are working and have more money to spend -Provides an environment favorable to business growth
Political/Legal component
-legislation -regulations -court decisions
Techniques to try and influence companies
-public communications -media advocacy -product boycotts
Industry Regulation
Consists of regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
Internal Environment
Consists of the trends and events within an organization that affect the management employees, and organizational culture
Advocacy Groups
Groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
Resource Scarcity
The degree to which an organization's external environment has an abundance or scarcity of critical organizational resource
Team orientation
The degree to which work activities are organized around teams rather than individuals
Product Boycott
a tactic in which an advocacy group actively tries to convince consumers to not purchase a company's product or service
Proactive customer monitoring
anticipating problems, trends, and events
Regulatory agencies affect businesses by
creating and enforcing rules and regulations to protect consumers, workers,or society as a whole
Monitoring customer wants and needs is....
critical for business success
Relationship behavior
focuses on establishing a mutually beneficial, long-term relationship between buyers and suppliers
A higher degree of buyer or seller dependence can lead to opportunistic behavior
in which one party benefits at the expense of the other
Public communications
relies on voluntary participation by the news media and the advertising industry to get an advocacy groups message out
Reactive customer monitoring
responding to problems, trends, events
Business confidence indices
show how confident actual managers are about future business growth
People orientation
the degree to which management decisions take into consideration the effect on people within the organization
Media advocacy
typically framing issues as public issues exposing questionable, exploitative, or unethical practices
