How can we help?

You can also find more resources in our Help Center.

33 terms

Chapter 2

STUDY
PLAY
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