MGT ch. 3
Competitors
An organization that competes with other organizations for resources.
Suppliers
An organization that provides resources for other organizations.
Strategic partners (strategic allies)
An organization working together with one or more other organizations in a joint venture or similar arrangement.
Competitive forces
-*Michael Porter* defined the Five Competitive Forces. -Threat of new entrants, Competitive rivalry, Threat of substitute products and services, Power of buyers, Power of suppliers
Dimensions of Diversity and Multiculturalism
-Average age is increasing. -Increasing numbers of females in workforce. -*Glass ceiling* is a perceived barrier that keeps women from advancing to top management. -*Ethnicity*:the ethnic composition of a group or organization, continues increasing.
Determinants of organizational culture
-Develops over a long period of time. -Often starts with the founder. -Includes such things as corporate success and shared experiences. -As an organization grows, its culture is modified, shaped, and refined by symbols, stories, heroes, slogans, and ceremonies.
Other Diversity Dimensions
-Physical mobility. -Religion. -Single parents. -Dual-career marriages. -Alternative lifestyles. -Vegetarianism. -Political ideologies.
Rites and rituals
-activities and ceremonies, planned and unplanned, that celebrate important occasions and accomplishments in the organization's life
Symbol
-an object, act, quality, or event that conveys meaning to others
Reasons For Increasing Diversity and Multiculturalism
-changing demographics in the labor force -increased awareness that diversity improves the quality of the workforce -legislation and legal action -the globalization movement
Three basic perspectives can be used to describe how environments affect organizations:
-environmental change and complexity -competitive forces -environmental turbulence.
These are the six basic mechanisms through which organizations adapt to their environments:
-information management -strategic response -mergers, acquisitions & alliances -organization design & flexibility -direct influence -social responsibility
Story
-narrative based on true events, which is repeated (and sometimes embellished upon) to emphasize a particular value
Hero
-person whose accomplishments embody the values of the organization
Level 1: Observable artifacts
-physical manifestations such as manner of dress, awards, myths and stories about the company -visible behavior exhibited by managers and employees -most surface level; things you can
Level 3: Basic Assumptions
-represent the core values of the organization's culture -those taken for granted and highly resistant to change -deepest level
Regulators
A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices. -FDA, EPA, SEC, EEOC
Threat of new entrants
Ease of new competitors entering a market.
Level 2: Espoused Values
Espoused values: -explicitly stated values and norms preferred by an organization Enacted values: -represent the values and norms actually exhibited in the organization
External environment
Everything outside an organization's boundaries that might affect it
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.
Power of buyers
Extent buyer's can influence suppliers in an industry.
Power of suppliers
Extent suppliers can influence potential buyers in an industry.
Threat of substitute products and services
Extent to which alternative products or services may supplant or diminish need for existing offerings.
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.
Importance of organizational culture
It can shape the firm's effectiveness and long-term success, and increase productivity.
The Three Levels of Organizational Culture
Level 1: Observable artifacts Level 2: Espoused Values Level 3: Basic Assumptions
Competitive rivalry
Nature of competitive relationship between firms in an industry.
Task environment
Specific organizations or groups that influence an organization. -competitors, customers, suppliers, strategic partners, regulators.
Multiculturalism
The broad issues associated with differences in values, beliefs, behaviors, customs, and attitudes held by people in different cultures.
Internal environment
The conditions and forces within an organization. -owners, board of directors, employees, physical environment, culture.
Sociocultural dimension
The customs, mores, values, and demographic characteristics of society.
International dimension
The extent to which an organization is involved in or affected by business in other countries.
Political-legal dimension
The government regulation of business and the relationship between business and government.
Technological dimension
The methods available for converting resources into products or services.
Economic dimension
The overall health and vitality of the economic system in which the organization operates. -important economic factors for business are general economic growth, inflation, interest rates, and unemployment
General environment
The set of broad dimensions and forces in an organization's surroundings that create its overall context. -international, technological, economic, sociocultural, political-legal dimension.
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 important. -foundation of internal environment
Owners
Whoever can claim property rights to an organization.
Customers
Whoever pays money to acquire an organization's products/services.
Environmental turbulence
consists of changes in the environment that may or may not be expected
There are actually two separate external environments:
the general environment and the task environment.