Chapter 3: Organizational Environments and Cultures

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external environments

all events outside a company that have the potential to influence or affect it

environmental change

the rae at which a company's general and specific environment in which the rate of change is slow

stable environment

an environment in which the rate of change is slow

dynamic environment

an environment in which the rate of change is fast.

punctuated equilibrium theory

the theory that companies go through long periods of stability , followed y short periods of dynamic, fundamental change, and fininshing wht a return to stability.

environmental complexity

the number and the intensity of external factors in the environment that affect organizations

simple environment

an environment with few environmental factors

complex environment

an environment with many environmental factors

resource scarcity

the abundance or shortage of critical organizational resources in an organization's external environment.

uncertainty

extent to which managers can understand or predict which environmental changes and tends will affect their businesses

general environment

the economic, technological, sociocultural, and political trends that indirectly affect all organizations

specific environment

the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business.

business confidence indices

indices that show managers' level of confidence about future business growth.

technology

the knowledge, tools, and techniques used to transform input into output.

competitors

companies in the same industry that sell similar products or services to customers

competitive analysis

a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

suppliers

companies that provide material, human, financial, and informational resources to other companies

supplier dependence

the degree to which a cmpany relies on a supplier because of the importance of the supplier's product to the compnay and the difficulty of finding other sources of that product.

buyer dependence

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products

opportunistic behavior

a transaction in which one party in the relationship benefits at the expense of the other

relationship behavior

the establishment of mututally beneficial, long-term exchanges between buyers and suppliers.

industry regulation

regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions.

advcacy groups

concerned citizens who band together to try to influence the business practices of speific industries, businesses, and professions

public communications

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group's message out.

media advocacy

an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media time or creating controversy that is likely to recieve extensive news coverage.

product boycott

an advocacy group tactic that involves protesting a company's actions by persuading consumers not to purchase its product or service

environmental scanning

searching the environment for important events or issues that might affect an organization

cognitive maps

graphic depictions of how managers believe environmental factors relate to possible organizational actions.

internal environment

the events and tends inside an organization that affect management, employess, and organizational culture

organizational culture

the values, beliefs, and attitudes shared by organizational members

organizational stories

stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions.

organizational heros

people celebrated for their qualities and achievements within an organization.

company vision

a company's purpose or reason for existing

consistent organizaitonal culture

a company culture in which the company actively defines and teaches organizational values, beliefs, and attitudes.

behavioral addition

the process of having managers and employess perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create.

behavioral substitution

the process of having managers and employees perform new behaviors central to the "new" organizational culture in place of behaviors that were central to the "old" organizaitonal culture.

visible artifacts

visible signs of an organization's culture, such as the office design and layout, company dress code, and company benifits and perks, like stock options, personal parking spaces, or the private company dining room.

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