Chapter 2

Created by tnr6x7 

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inputs

goods and services organizations take in and use to create products or services

open systems

organizations that are affected by, and that affect, their environment

outputs

products and services organizations create

external environment

all relevant forces outside a firm's boundaries, such as competitors, customers, the government, and the economy

competitive environment

the immediate environment surrounding a firm; include suppliers customers, competitors, and the like.

macroenvironment

the general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.

demographics

measures of various characteristics of the people who make up groups or other social units

barriers to entry

conditions that prevent new companies from entering an industry

switching costs

fixed costs buyers face when they change suppliers

supply chain management

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

final consumer

those who purchase products in their finished form

intermediate consumer

customer who purchases raw materials or wholesale products before selling them to final customers

environmental uncertainty

lack of information needed to understand or predict the future

environmental scanning

searching for an sorting through information about the environment

competitive intelligence

information that helps managers determine how to compete better

scenario

narrative that describes a particular set of future conditions

forecasting

method for predicting how variables will change the future

benchmarking

the process of comparing an organization's practices and technologies with those of other companies

empowerment

the process of sharing power with employees, thereby enhancing their confidence in their ability to perform their jobs and their belief that they are influential contributors to the organization

buffering

creating supplies of excess resources in case of unpredictable needs

smoothing

leveling normal fluctuations at the boundries of the environment

flexible processes

methods for adapting the technical core to changes in the environment

independent strategies

strategies that an organization acting on its own uses to change some aspect of its current environment

cooperative strategies

strategies used by two or more organizations working together to manage the external environment

strategic maneuvering

an organization's conscious efforts to change the boundaries of its task enviornment

domain selection

entering a new market or industry with an existing expertise.

diversification

firm's investment in a different product, business, or geographic area

acquisition

one firm buying another

merger

one or more companies combining with another

divestiture

firm selling one or more businesses

prospectors

companies that continuously change he boundaries for their task environment 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

organization culture

the set of important assumptions about the organizations and its goals and practices that members of the company share

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