Chapter 6

Explain competitors.

Competitors are in the task environment. They are organizations that produce goods and services that are similar to a particular organization's goods and services. Rivalry between competitors is potentially the most threatening force managers must deal with. Price competition occurs.

Explain Customers.

Customers are in the task environment. They are individuals and groups that buy the goods and services an organization produces. An organizations success depends on its responsiveness to customers whether it can satisfy their needs.

Explain demographic forces.

Demographic forces are in the general environment and include outcomes of change in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation and social class.

Explain Distributors

Distributers are in the task environment and it is organizations that help other organizations sell their goods or services to customers. It is illegal for distributors to collaborate or collude to keep prices high, but it happens anyways.

Explain Economic forces.

Economic forces are in the general environment and they include interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.

What is General Environment?

General environment is the wide-ranging global economic, technological sociocultural, demographic, political and legal forces that affect an organization and its task environment.

What is Global Environment?

Global Environment is a set of forces and conditions in the word outside an organization's boundary that affect how it operates and shapes its behaviour.

What is Global Organization?

Global Organization is an organization that operates and competes in more than one country.

What is Globalization?

Globalization is the set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar.

Explain political and legal forces.

Political and legal forces are in the general environment and they include outcomes of changes in laws and regulations, such as deregulation of industries, privatization of organizations, and increased emphasis on environmental protection.

Explain Sociocultural forces.

Sociocultural forces are in the general environment and include pressures emanating from the social structure of a country or society from the national culture.

Explain suppliers.

Suppliers is in the task environment and it is individuals and organizations that provide an organization with the input resources it needs to produce goods and services. Suppliers who become too powerful have more bargaining power and can raise prices. When there are many suppliers the power goes down.

What is task environment?

Task environment is the set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of outputs because they influence managers daily

Explain technological Forces

Technological forces are in the general environment and they are outcomes of changes in the technology managers use to design, produce or distribute goods and services.

Explain the free trade doctrine.

The free-trade doctrine is the idea that if each country specializes in the production of goods and services that in can produce more efficiently, this will make the best use of global resources.

What is a tariff?

a tariff is a tax that has government imposes on imported or occasionally exported gods.