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