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