Chapter 4
How is competitiveness measured?
A comparison of industry and market size to the company sales
What is the purpose of differentiation and integration?
A response to environmental uncertainty
What is the purpose of planning, forecasting and responsiveness?
A way to keep the organization geared for a coordinated, speedy response to environmental changes
Describe the socio-cultural sector.
Age values Beliefs Education Religion Work ethic Consumer and green movements
When should a business add positions and departments?
As complexity and uncertainty in the external environment increases
How can an organization control their domain of the environment?
Change the domain Political activity Regulation Trade associations illegitimate activities
Describe the international sector.
Competition from and acquisition by foreign firms Entry into overseas markets Foreign customs Regulations Exchange rates
Describe the industry sector of the environment.
Competitors industry size competivieness
Describe a Low-Moderate Uncertainty environment.
Complex Stable
Describe a High uncertainty environment.
Complex Unstable
Define intelligence team.
Cross-functional group of managers and employees who work together to gain sights, possibilities and recommendations to top leaders.
Describe the market sector.
Customers Clients Potential users of products and services
Why does the complexity and uncertainty of the environment relate to the number of positions and departments of an organization?
Each sector in the external environment requires an employee or department to deal with it
What are the different strategies to controlling the external environment?
Establishing inter-organizational linkages Controlling the domain of the environment
What is the organization's environment?
Everything that exists outside the boundary of the organization and has the potential to affect all or part of the organization
What type of planning does an organization engage in in a High Uncertainty environment?
Extensive planning, forecasting
What level of responsiveness does an organization have in a High-Moderate Uncertainty environment?
Fast Response
How many departments does an organization have in a Low Uncertainty environment?
Few
How many integrating roles does an organization have in a High-Moderate Uncertainty environment?
Few
How many integrating roles does an organization have in a Low-Moderate Uncertainty environment?
Few
How many departments does an organization have in a High-Moderate Uncertainty environment?
Few departments, Much boundary spanning
Define competitive intelligence.
Gives top executives a systematic way to collect and analyze public information about rivals and use it to make better decisions
What are the different sectors of the general environment?
Government Socio-cultural Economic conditions Technology Financial resources
What level of responsiveness does an organization have in a High Uncertainty environment?
High-speed response
What are the different sectors of the task environment?
Industry Raw materials Market Human Resources International
What is environmental uncertainty?
Insufficient information about environmental factors and difficulty predicting external changes
What is important about the international sector of the environment?
International events can influence all of the domestic sectors of the environment
Describe the human resources sector.
Labor market Employees in other companies Unionization
Describe the government sector.
Laws and regulations Taxes Political process
What do boundary-spanning roles do?
Link and coordinate an organization with key elements in the external environment
What are the different levels of environmental uncertainty?
Low Uncertainty Low-Moderate Uncertainty High-Moderate Uncertainty High Uncertainty
What level of responsiveness does an organization have in a Low Uncertainty environment?
Low-speed responsiveness
Define cooptation.
Making leaders from important environmental sectors apart of the organization.
How many integrating roles does an organization have in a High Uncertainty environment?
Many
How many departments does an organization have in a High Uncertainty environment?
Many departments differentiated, extensive boundary spanning
If environmental uncertainty is low, is the organization mechanistic or organic?
Mechanistic
What type of design does an organization use in a Low Uncertainty environment?
Mechanistic design
What type of design does an organization use in a Low-Moderate Uncertainty environment?
Mechanistic design
What level of responsiveness does an organization have in a Low-Moderate Uncertainty environment?
Moderate-speed responsiveness
How many integrating roles does an organization have in a Low Uncertainty environment?
None
What type of planning does an organization engage in in a Low Uncertainty environment?
None, current operations orientation
What are the different management and control methods of adapting to a changing environment?
Number of positions and departments Organizational differentiation and integration Control processes Future planning and forecasting
If environmental uncertainty is high, is the organization mechanistic or organic?
Organic
What type of design does an organization use in a High Uncertainty environment?
Organic
What type of design does an organization use in a High-Moderate Uncertainty environment?
Organic design
What is resource dependence?
Organizations depend on the environment but strive to acquire control over resources to minimize their dependence
What are the different inter-organizational linkages?
Ownership Joint ventures Cooptation Interlocking directorate Recruiting key people Advertising and Public Relations
What type of planning does an organization engage in in a High-Moderate Uncertainty environment?
Planning orientation
Describe the economic sector.
Present and future conditions Recession Unemployment rate Inflation rate Rate of investment Economic growth
How do you adapt to a changing environment?
Proper management and control
Define the general environment.
Sectors that might not have a direct impact on the daily operations of a firm but will indirectly influence it.
Define the task environment.
Sectors with which the organization interacts directly and that have a direct impact on the organization's ability to achieve its goals
Describe a Low Uncertainty environment.
Simple Stable
Describe a High-Moderate Uncertainty environment.
Simple Unstable
What type of planning does an organization engage in in a Low-Moderate Uncertainty environment?
Some planning
What are the dimensions of the changing environment?
Stable or Unstable Simple or Complex
Describe the raw materials sector.
Suppliers Manufacturers Real estate Services
Describe the financial sector.
Supply of financing
What are the types of environment?
Task Environment General Environment
Describe the technology sector.
Techniques of production Computers Information
What is the munificence?
The amount of resources available to support the organization's growth
Define the term 'organization's domain'.
The chosen environment field of action within external sectors
What is a dynamic or non-dynamic environment?
The degree to which the environment remains essentially the same over a period of time
Define differentiation.
The differences in cognitive and emotional orientations among managers in different functional departments, and the difference in formal structure among these departments
How does complexity and stability of the environment relate to uncertainty?
The greater the change and the complexity of the environment influences the need for information, creating a feeling of uncertainty
What is the simple-complex dimension?
The heterogeneity of the environment (The number and dissimilarity of the environmental sectors)
Define business intelligence.
The high-tech analysis of large amounts of internal and external data to spot patterns in relationships that might be significant
What is the heterogeneity of the environment?
The number and dissimilarity of the environmental sectors
Define integration.
The quality of collaboration among departments
Why do you build relationships with the external environment?
To make the organization more fluid and adaptable
Define interlocking directorate.
When a member of the board of directors of one company sits on the board of directors of another company
What is the stable-unstable dimension?
Whether the environment is dynamic or non-dynamic (The degree to which the environment remains essentially the same over a period of time)
How many departments does an organization have in a Low-Moderate Uncertainty environment?
many, some boundary spanning