Penn Foster - Principles of Management - Chapter 3
intermediate consumer
A consumer who purchases raw materials or wholesale products before selling them to final customers
What are the three categories that must be considered for a business to respond to an environment?
Adapting to the environment, influencing the environment, and selecting a new environment.
External Environment
All relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy.
Explain the difference between an independent strategy and a cooperative strategy.
An independent strategy means a business acts on its own. A cooperative strategy means the organization partners with at least one other organization.
strategic maneuvering
An organization's conscious efforts to change the boundaries of its task environment
What are the four types of organizational culture?
Clan culture, hierarchical culture, market culture, and adhocracy
List the four ways you can learn about the culture of a business.
Corporate mission statement and official goals, observable business practices, symbols, rites, and ceremonies, the stories people tell.
Explain three ways culture may be managed.
Crafting an inspirational version of "what can be," "walk the talk," and celebrate and reward members who display the desired culture.
List the four types of strategic maneuvers.
Domain selection, diversification, merger/acquisition, divestiture.
What are the four ways a business may choose to adapt to a dynamic and complex environment?
Empowerment, buffering, smoothing, and flexible processes.
domain selection
Entering a new market or industry with an existing expertise
List the three criteria used to help managers choose the best approach to respond to the environment.
Managers need to change what can be changed. Managers should use the appropriate response. Managers should choose responses that offer the most benefit at the lowest cost.
Hierachical Culture
The U.S. armed forces are based on a hierarchical culture that is internally oriented by more focus page 65on control and stability. It has the values and norms associated with a bureaucracy. It values stability and assumes that individuals will comply with organizational mandates when roles are stated formally and enforced through rules and procedures.
Macroenvironment
The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
competitive environment
The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.
Define the makeup of an internal environment.
The internal environment is all relevant forces inside a business.
What are the three levels of organizational culture?
Visible artifacts, values, and unconscious assumptions.
final consumers
a customer who purchases products in their finished form
divestiture
a firm selling one or more businesses
Diversification
a firm's investment in a different product, business, or geographic area
internal environment
all relevant forces inside a firm's boundaries, such as its managers, employees, resources, and organizational culture
adhocracy culture
attempts to create innovative products by being adaptable, creative, and quick to respond to changes in the marketplace
Prospectors are
companies that continually change the boundaries for their task environments by seeking new products and markets, diversifying and merging, or acquiring new enterprises
Defenders
companies that stay within a stable product domain as a strategic maneuver
barriers to entry
conditions that prevent new companies from entering an industry
Buffering
creating supplies of excess resources in case of unpredictable needs
Demographics
demographics
market culture
has a strong external focus and values stability and control
The type of culture used in the military is called a/an ______ culture.
hierarchical
competitive intelligence
information that helps managers determine how to compete better
clan culture
internal focus and values flexibility rather than stability and control
environmental uncertainty
lack of information needed to understand or predict the future
smoothing
leveling normal fluctuations at the boundaries of the environment
flexible processes
methods for adapting the technical core to changes in the environment
Acquistion
one firm buying another
open systems
organizations that are affected by, and that affect, their environments (and other systems)
enviromental scanning
searching for and sorting through information about the environment
The cost of changing from one supplier to another is called a/an ______ cost.
switching
visible artifacts
the components of an organization that can be seen and heard, such as office layout, dress, orientation, stories, and written material
Supply Chain Management (SCM)
the managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers
organizational culture
the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization
unconscious assumptions
the strongly held and taken-for-granted beliefs that guide behavior in the firm
Values
the underlying qualities and desirable behaviors that are important to the organization
merger
when two or more companies join to form a single firm