Chapter 1-3

Question 1

Organization

Answer 1

A tool people use to coordinate their actions to obtain something they desire or value.

Question 2

Entrepreneurship

Answer 2

Process where people recognize opportunities to satisfy needs and then gather and use resources to meet those needs.

Question 3

Organizational Environment

Answer 3

The set of forces and conditions that operate beyond an organizations boundaries but affect its ability to acquire and use resources to create value.

Question 4

Economies of Scale

Answer 4

Cost savings that result when goods and services are produced in large volume on automated production lines.

Question 5

Economies of Scope

Answer 5

Cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across different products or tasks.

Question 6

Transaction Costs

Answer 6

The costs relating to negotiating, monitoring, and governing exchanges between people within an organization

Question 7

Organizational Theory

Answer 7

The study of how organizations function and how they affect and are affected by the environment in which they operate.

Question 8

Organizational Structure

Answer 8

The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.

Question 9

Organizational culture

Answer 9

The set of shared values and norms that controls organizational members’ interactions with each other and with suppliers, customers, and other people outside the organization.

Question 10

Organizational Design

Answer 10

The process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.

Question 11

Organizational Change

Answer 11

The process by which organizations redesign their structures and cultures to move from their present state to a desired future state to increase their effectiveness.

Question 12

External Resource approach

Answer 12

Evaluates the organizations ability to secure, manage and control scarce and valued skills and resources.

Question 13

Internal Systems approach

Answer 13

Evaluates an organizations ability to be innovative and function quickly and responsively (Ability internally)

Question 14

Technical approach

Answer 14

Evaluates the organizations ability to convert skills and resources to goods and services efficiently. (Product specification)

Question 15

Operative goals

Answer 15

Specific long-term and short-term goals that guide managers and employees as they perform the work of the organization.

Question 16

Stakeholders

Answer 16

People who have an interest, claim, or stake in an organization, in what it does, and in how well it performs.

Question 17

Contributions

Answer 17

The skills, knowledge, and expertise that organizations require of their members during task performance.

Question 18

Inducements

Answer 18

Rewards such as money, power, and organizational statements. (This induces the employees to…)

Question 19

Shareholders

Answer 19

The owners of an organization and generally are the highest up in the hierarchy. Their claims carry more weight in comparison to other stakeholders.

Question 20

Managers

Answer 20

These are employees responsible for coordinating organizational resources and ensuring that an organizations goals are met successfully.

Question 21

The Workforce

Answer 21

They consist of all non managerial employees. They have task responsibilities and duties that they are accountable for performing at the required level.

Question 22

Trade Unions

Answer 22

This is an organization of workers who would work hand in hand with managers to focus towards the productivity and effectiveness of the organization and the union.

Question 23

Local communities affect on organizations

Answer 23

Local communities have a stake in the performance of organizations as factors such as housing, employment, and the general economic well-being of a community are strongly affected by the success or failure of local businesses.

Question 24

Chain of command

Answer 24

The system of hierarchal reporting relationships in an organization.

Question 25

Organizational Domain

Answer 25

The particular range of goods and services that the organization produces and the customers and other stakeholders it serves.

Question 26

Specific Environment

Answer 26

The forces from outside stakeholder groups that directly affect an organizations ability to secure resources.

Question 27

Global supply chain management

Answer 27

The coordination of the flow of raw materials, components, semifinished goods, and finished products around the world.

Question 28

General Environment

Answer 28

The forces that shape the specific environment and affect the ability of all organizations in a particular environment to obtain resources.

Question 29

Environmental complexity

Answer 29

The strength, number, and interconnectedness of the specific and general forces that an organization has to manage.

Question 30

What are the 3 factors that cause uncertainty?

Answer 30

Complexity, Dynamism, and richness.

Question 31

Environmental Dynamism

Answer 31

The degree to which forces in the specific and general environments change quickly overtime and thus contribute to the uncertainty an organization faces. (Dynamic- broad range of uncertainty).

Question 32

Environmental richness

Answer 32

The amount of resources available to support an organizations domain- this could link to suppliers, employees, etc…

Question 33

Resource dependence theory

Answer 33

A theory that argues the goal of an organization is to minimize its dependence on other organizations for the supply of scarce resources in its environment and to find ways of infoyencing them to make resources available- Rubens presentations theory.

Question 34

What are the two types of interdependencies which cause uncertainty in a specific environment?

Answer 34

Symbiotic and competitive

Question 35

Symbiotic interdependency

Answer 35

This is where an output of one organization is another organizations input.

Question 36

Competitive interdependency

Answer 36

This exists among organizations that compete for scarce inputs and outputs. (Apple and Microsoft for the M1 chip)

Question 37

Cooptation

Answer 37

A strategy that manages symbiotic interdependencies by neutralizing problematic forces in the specific environment. (Giving out free samples, teacher-parent committees- this may mean they have less control over certain aspects, but would generally result in more positives than negatives).

Question 38

Interlocking directorate

Answer 38

A linkage that results when a director from one company sits on the board of another company.

Question 39

Strategic Alliance

Answer 39

This is where 2 or more companies would form an alliance to allow them to share their resources to develop join new business opportunities.

Question 40

Network

Answer 40

This is a cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy of authority.

Question 41

Joint Venture

Answer 41

A strategic alliance two or more organizations that agree to establish and share the ownership of a new business. (Company A and Company B create Company C).

Question 42

Merger and Takeover

Answer 42

The most formal strategy for managing symbiotic and competitive interdependencies is to merge with or take over a supplier or distributor. This means the exchanges are occurring within a company aside from with a different company.

Question 43

Transaction cost theory

Answer 43

A theory that states the goal of an organization is to minimize the costs of exchanging resources in the environment and the costs of managing exchanges inside the organization.

Question 44

Specific Assets

Answer 44

Investments- in skills, machinery, knowledge, and information- that create value in one particular exchange relationship but have no value in any other exchange relationship.

Question 45

Keiretsu

Answer 45

The Japanese system of keiretsu can be seen as a mechanism for achieving the benefits of a formal linkage mechanism without incurring its costs.

Question 46

Franchising

Answer 46

Is a business authorized to sell a company’s products in a certain area. (Virgin megastore and apple).

Question 47

Outsourcing

Answer 47

The process of moving a value creation activity that was performed inside an organization to outside where it is done by another company.