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