Management: Chapter 3 Vocab
Strategic issues
"events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives"
2 key ideas of cultural leadership
- The cultural leader articulates a vision for the organizational culture that employees can believe in - the cultural leader heeds the day-to-day activities that reinforce the cultural vision
symbol
- object, art, or event that conveys meaning to others - rich, nonverbal language
culture
- set of key values, beliefs, understandings, and norms shared by members of an organization - pattern of shared values and assumptions about how things are done within the organization
Possibility of new substitutes
- what other options do customers have to satisfy their needs/want for the product they buy from us? currently today: people will find what they/re looking for and end up buying it cheaper from amazon, also easily accessable
Competitive environment
5 forces Developed by Michael Porter
Global sector/environment
??
Backward integrated
A customers ability to make their own versions of certain products a company might have Walmart - better possibility of this compared to a plane manufacturer
Power of competitors
Company's ability to compete successfully with other companies Walmart-target-kmart
Demographic dimension
Composition of population, age, gender, race
Trends
Consumer preferences
Barriers to entry
Factor that makes it harder for new competitors to enter the industry Lower barriers to entry- easy for a new company to form (restaurants)
Threat of new entrants
How easy is it for potential new competitors to take the company's customers Barriers to entry- lower=restaurants, high= airplane manufacturing
Opportunities and threats
Opportunity: ability to ass new products to the market Threat: when current trends are negatively affecting current products/ markets
Forces of the competitive environment
Power of Competitor Power of Customers Power of Suppliers Threat of new entrants Possibility of substitutes
Possibly of substitutes
What other options do customers have to satisfy their need/want for the product they buy from us Car- other options are public transportation, bikes, rentals, Uber Plane tickets- train, drive Movie theater-netflix, bowling, read
Power of customers
Who holds the balance? Many or few customers? With many, they have little power to change things within a company, but with few customers have greater power
Power of suppliers
Who holds the power? Many or few suppliers? With many- the company holds the power With few- the suppliers hold the power
high-performance culture
a culture that is based on a solid organizational mission or purpose, embodies shared adaptive values that guide decisions and business practices, and encourages individual employee ownership of both bottom-line results and the organization's cultural backbone
competitive intelligence
activities to get as much information as possible about one's rivals
4 categories/types of culture
adaptability, achievement, involvement, and consistency
general environment
affects organizations indirectly
Organizational environment
all elements existing outside the boundary of the organization that have the potential to affect the organization
natural dimension
all elements that occur naturally on Earth, including plants, animals, rocks, and resources such as air, water and climate
task environment
closer to the organization and includes the sectors that conduct day-to-day transactions with the organization and directly influence its basic operations and performance
Power of Competitors
companys ability to compete successfully
Whats included in the external environment
competitors, resources, technology, and economic conditions
Dimensions/sectors of the task environment
competitors, suppliers, customers, and the labor market
What is the internal environment composed of?
composed of current employees, management and corporate culture
cultural leader
defines and uses signals and symbols to influence corporate values
overcommunicate
defines and uses signals and symbols to influence corporate values
internal environment
elements within the organization's boundaries
adaptability culture
emerges in an environment that requires fast response and high risk decision making
hero
figure who exemplifies the deeds, character, and attributes of a strong culture
2 components of the external environment
general and task
economic dimension
general economic health of a country or region in which the organization operates Incomes, unemployment, inflation
legal-political dimension
government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior Laws/regulations
Threats of new entrants
how easy is it for potential new compeitiors to take the companys customers - high or low barriers to entry restaurants
just-in-time (JIT)
improves an organization's return on investment , quality, and efficiency because much less money in invested in idle inventory
involvement culture
internal focus on the involvement and participation of employees to adapt rapidly to changing needs from the environment
Boundary-spanning roles
link to and coordinate the organization with key elements in the external environment
Uncertainty
managers do not have sufficient information about environmental factors to understand and predict environmental needs and changes
story
narrative based on true events and is repeated frequently and shared among organizational employees
supply chain
network of multiple businesses and individuals that are connected through the flow of products or services
merger
occurs when two or more organizations combine to become one
competitors
organizations in the same type of business that provide goods or services to the same set of customers
customers
people and organizations in the environment that acquire goods or services from the organization
labor market
people in the environment who can be hired to work for the organization
ceremony
phrase or sentence that succinctly expresses a key corporate value
slogan
phrase or sentence that succinctly expresses a key corporate value
suppliers
provide the raw materials that the organization uses to produce its outpu
sociocultural dimension
represents the demographic characteristics as well as the norms, customs, and values of the general population Changes in patterns of thought/behavior in a society
business intelligence
results from using sophisticated software to search through large amounts of internal and external data to spot patterns, trends, and relationships that might be significant example: Verison
technological dimension
scientific and technological advancements in a specific industry, as well as in society at large
Dimensions/sectors of the general environment
socialcultural, economic, legal-political, demographic, natural, global and technological factors
joint venture
strategic alliance or program by two or more organizations
achievement culture
suited to organizations concerned with serving specific customers in the external environment, but without intense need for flexibility and rapid
organizational ecosystem
system formed by the interaction among a community of organizations in the environment
consistency culture
uses an internal focus and a consistency orientation for a stable environment
Power of Customers
who holds the power? many or few customers many--> company holds the power, but if few, customers hold the power