30 terms

Organizational Environment and Culture

characteristics of organizational environments
change, complexity, scarcity
types of organizational environments
general and specific
making sense of the organizational environment
cognitive maps
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 company does business
economy (component of general environment)
growing (favorable to business growth) vs. shrinking economies, predicting future economic activity, business confidence indices
business confidence indices
indices that show mangers' level of confidence about future business growth
technology trends
the knowledge, tools, and techniques used to transform input into output
sociocultural trends
demographic changes, changes in behavior, attitudes, and beliefs
political/legal trends
legislation, regulations, court decisions
trends of the general environment
the 'great recession,' Moore's law, aging of the population, progressive 'turn to the right'
customers (as component of specific environment)
reactive customer monitoring: responding to problems, trends, and events ; proactive customer monitoring: anticipating problems, trends, and events
competition (as a component of specific environment)
who are your competitors? what are their likely courses of action? what are their strengths and weaknesses?
suppliers (as a component of specific environment)
relative independence, opportunistic vs. relationship behavior
supplier dependence
the degree to which a company relies on a supplier because of the importance of the supplier's product to the company and the difficulty of finding other sources of that product
opportunistic behavior
a transaction in which one party in the relationship benefits at the expense of the other
relationship behavior
mutually 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
advocacy groups
groups of concerned citizens who band together to try to influence the business practices and procedures of specific industries, businesses, and professions
environmental change
the rate at which a company's environment changes; includes punctuated equilibrium theory
punctuated equilibrium theory
companies cycle through stable and dynamic environments
environmental complexity
number of external factors in the environment that affect organizations
resource scarcity
degree to which an organization's external environment has an abundance or scarcity of critical organizational resources
environmental uncertainty
the more complex the environment is, the higher the scarcity of resources, and the more uncertain a business
environmental scanning
searching the environment for events or issues that might affect an organization; keeps companies current on industry factors, reduces uncertainty, alter organizational strategies, contributes to organizational performance
cognitive maps
simplified models of external environments depicting how managers believe environmental factors relate to possible organizational actions
external business environment components
economy, technology, sociocultural, political/legal
specific business environment components
customs, competitors, suppliers, industry regulation, activists
characteristics of business environments
change and punctuated equilibrium, complexity, resource scarcity, uncertainty
dealing with business environments
environmental scanning, cognitive maps