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Global Environment

set of global forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources

Task Environment

The set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs because they influence managers on a daily basis.

General Environment

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


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

Global Outsourcing

The purchase of inputs from overseas suppliers or the production of inputs abroad to lower production costs and improve product quality or design.


Organizations that help other organizations sell their goods or services to customers.


people and organizations in the environment who purchase acquire goods or services from the organization


Organizations that produce goods and services simialr to a particular organizations goods and services.

Potential Competitors

Organizations that presently are not in a task environment but could enter if they so choose.

Barriers to Entry

Conditions that keep new businesses either from entering an industry or succeeding in that industry.

Economics of Scale

Reduction of long-run average costs resulting from an expansion in the scale of a firm's operations so that more of all inputs is being used.

Brand Loyalty

a consistent preference for one brand over all others

Economic Forces

affect the general health and well-being of a country or world region.


the combination of tools, machines, computers, skills, information, and knowledge that managers use in the design, production, and distribution of goods and services.

Technological Forces

Outcomes of changes in the technology that managers use to design, produce, or distribute goods and services.

Sociocultural Forces

Pressures emanating from the social structure of a country or society or from the national culture.

Social Structure

the people in a society considered as a system organized by a characteristic pattern of relationships

National Culture

cultural experiences, beliefs, learned behavior patterns, and values shared by citizens of the same nation

Demographic Forces

Outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

Political and legal forces

outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations, and the increased emphasis on environmental protection.


The trend toward increased cultural and economic connectedness between people, businesses, and organizations throughout the world.


a government tax on imports or exports

Free-trade doctrine

idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources


rules and expectations by which a society guides the behavior of its members


the routine social conventions of everday life


are norms that are considered to be central to the functioning of society and to social life.


is a worldview that values dindividual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather than by their social background.


is a worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group

Power distance

The degree to which people accept inequality in power among institutions, organizations, and people

Achievement orientation

A worldview that values assertiveness, performance, success, and competition.

Nurturing orientation

A worldview that values the quality of life, warm personal friendships, and services and care for the weak.

Uncertainty Avoidance

the degree of ambiguity and uncertainty people are willing to tolerate

Long-term orientation

a value orientation in which people stress the importance of virtue

Short-term orientation

is concerned with maintaining personal stability or happiness and living for the present

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