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the economic, technological, sociocultural, and political trends that indirectly affect all organizations
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
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
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
a transaction in which one party in the relationship benefits at the expense of the other
regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
groups of concerned citizens who band together to try to influence the business practices and procedures of specific industries, businesses, and professions
the rate at which a company's environment changes; includes punctuated equilibrium theory
degree to which an organization's external environment has an abundance or scarcity of critical organizational resources
the more complex the environment is, the higher the scarcity of resources, and the more uncertain a business
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
simplified models of external environments depicting how managers believe environmental factors relate to possible organizational actions
specific business environment components
customs, competitors, suppliers, industry regulation, activists
characteristics of business environments
change and punctuated equilibrium, complexity, resource scarcity, uncertainty
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