MGT Ch3
general environment
the broad, complex factors that affect all organizations such as legal systems, population trends, economic conditions, and workers' educational levels
stakeholder orientation
the degree to which a firm understands and addresses stakeholder demands
the power of the customer increases when
the firm's product is not significantly different from that of its competitors; the cost of the product is a significant expense for the customers; the customer is a major buyer of the firm's total goods or services
corporate governance
the formal system of oversight, accountability, and control for organizational decisions and resources; most corporations have some form of oversite
economic dimension
the overall condition of the complex interactions of economies throughout the world (interest rates, inflation, unemployment rates, gross national product, and the value of the US dollar)
task environment
those factors that have a direct effect on a specific organization and its managers, including customers, suppliers, competitors, substitutes, and potential new entrants to the industry
primary stockholders
those who have a formal and/or contractual relationship with the firm, such as customers, suppliers, employees, regulators, investors, and communities
customers
those who purchase an organization's goods and/or services; could be the final recipient (user of the good or service or serve as an intermediary
legal element
use of the judicial branches of government to resolve disputes between parties
Current customers
want to know everything about them
Competitor's customers
why do they choose their competitor over us?
technological dimension
within the general environment, the knowledge and process of changing inputs (resources, labor, and money) to outputs (goods and services)
political-legal dimension
within the general environment, the nature of the relationship between carious areas of government and the organization (political legal and regulatory elements)
You own a computer company, and you launch a joint venture with a competitor to create a new super-speed tablet. Unfortunately, you do not realize that your operating system is totally incompatible with that of the other company's, and the new venture fails miserably. This is the result of
your failure to cope with the technological dimension of the general environment.
activities of stakeholder orientation
-the organization-wide generation of data about stakeholder groups and assessment of the firm's effects on these groups -the distribution of this information throughout the firm -the organization's responsiveness as a whole to this intelligence
An American firm's refusal to enter into a binding contract with a Russian oil firm because of the lack of clarity of Russian law in this area is based on the American firm's analysis of which dimension of the general environment?
Political-legal dimension
stakeholder map
a representation of the organization's stakeholders and their stakes
internal environment
all factors that make up the organization, such as the owners, managers, employees, and board of directors
external environment
all of the factors outside the organization that may affect the managers' actions
environment
all of those factors that affectthe operation of the organization
Market
all the consumers willing and able to buy a product
who has the important task of representing the stockholders in their capacity as owners
board of directors
In analyzing their external environment, most organizations find that it presents
both threats and opportunities.
values
certain beliefs that affect different evaluations and behavior related to firms and products
The lowering of the fat content in many American food products is an example of
changing values regarding food products
potential new customers
companies not currently operating in a business's industry but which have a high potential for entering the industry
The fact that Americans are becoming older and more affluent is an example of
demographic characteristics.
The task environment includes all of the following except
environmentalists
substitutes
goods or services that may be used in place of those furnished by a given business
secondary stakeholders
groups that have a less formal connection to the organization, such as environmentalists, special interest groups, and the media
Because there are numerous suppliers of potatoes for such major fast-food chains as McDonald's, Wendy's, and Burger King, the suppliers
have little control over the restaurants.
Potential customers
how do we make them decide to buy our product? Not in the market yet
demographics
measures of various characteristics of the people and social groups who make up society (age, gender, income)
suppliers
organizations and individuals who provide resources to other organizations
competitors
other organizations that produce similar, or in some cases identical, goods or services; often the most powerful force in a firm's operations; prices, services, and after-salessupport are all directly compared with
global dimension
pertaining to the general environment, those factors in other countries that affect the organization
The Sierra Club makes a major effort in Washington to pass a law banning the logging of old-growth forest in Oregon through its political action committee (PAC). It is operating in the
political element of the political-legal dimension.
political element
refers to the businesses' involvement in forming public policy
groups of general environment forces
sociocultural, political-legal, technological, economic, and global dimensions of the environment
The Union Electric Company, a St. Louis utility, buys a large shipment of coal from Peabody Coal Company for use in its coal-fired plants. Peabody is one of Union Electric's
suppliers
The fact that U.S. businesses now frequently engage in task environment. trading relations is an illustration of what dimension of the general environment?
task
You own a bakery that makes fine bran muffins, but you lose a customer to another bakery that offers him a 25 percent discount for similar muffins. You are facing a challenge in the
task environment.
You own a gourmet restaurant in Atlanta. You send your chef, Pierre LePeachtree, to a major international restaurant-owners' meeting so he can find out what some of the hot new entrees are around the world. You are being sensitive to the
task environment.
sociocultural dimension
the aspect of the general environment that includes the demographics, attitudes, and the values of the society within which an organization operates (reference groups, social class, opinion leaders, and subcultures)
