chapter 2 Flashcards

1
Q

General environment:

A

The set of broad dimensions
and forces in an organization’s surroundings that
determine its overall context

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2
Q

Task environment:

A

Specific organizations or groups
that affect the organization

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3
Q

Internal environment

A

The conditions and forces within an organization

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4
Q

General Environment dimension

A
  • Economic dimension: Overall health and vitality of the
    economic system in which the organization operates.
    − Includes growth, inflation, interest rates, and unemployment
  • Technological dimension: Methods available for converting
    resources into products or services
    − CAD/CAM technologies, Web-based technologies in all areas of
    business
  • Political-legal dimension: Government regulation of
    business, relationship between business and government
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5
Q

Political-legal dimension:

A

Government regulation of
business, relationship between business and government

− Free market economy
− Political stability of international and local governments
− Pro- or anti-business sentiment in government influences
business activity. Includes antitrust issues, taxes, regulation
- Affects ability to compete

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6
Q

task: Competitor

A

− An organization that competes with other
organizations for resources

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7
Q

task: Customer

A

− Whoever pays money to acquire an organization’s
products or services

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8
Q

task: Supplier

A

− An organization that provides resources for other
organizations

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9
Q

task: Regulator

A

A body that has the potential to control, legislate,
or otherwise influence the organization’s policies and
practices

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10
Q

task: Regulatory agencies:

A

An agency created by the
government to regulate business activities

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11
Q

task: Interest groups

A

A group organized by its members to
attempt to influence organizations

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12
Q

task: Strategic partner

A

Also called strategic ally. An organization
working together with one or more other organizations in a
joint venture or similar arrangement

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13
Q

Internal: Owner

A

− Whoever can claim property rights to an organization

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14
Q

Internal: Board of directors

A

− Governing body that is elected by a corporation’s
stockholders and charged with overseeing the general
management of the firm to ensure that it is being run in a
way that best serves the stockholders’ interests

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15
Q

internal: Physical work environment

A

− Includes the actual physical environment and the work that
people do

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16
Q

Ethics

A
  • An individual’s personal beliefs about whether a behavior,
    action, or decision is right or wrong
17
Q

Ethical behavior:

A
  • Behavior that conforms to generally accepted social norms
18
Q

Unethical behavior:

A
  • Behavior that does not conform to generally accepted social
    norms
19
Q

Exporting

A

− Making a product in the firm’s domestic marketplace
and selling it in another country

20
Q

Importing

A

− Bringing a good, service, or capital into the home
country from abroad

21
Q

Licensing

A

− An arrangement whereby one company allows another
company to use its brand name, trademark, technology,
patent, copyright, or other assets in exchange for a
royalty based on sales

22
Q

Strategic alliance

A

− A cooperative arrangement between two or more firms for
mutual gain

23
Q

Joint venture

A

− A special type of strategic alliance in which the partners
share in the ownership of an operation on an equity basis

24
Q

Direct investment:

A

− When a firm builds or purchases operating facilities or
subsidiaries in a different country

25
Maquiladoras:
− Light assembly plants built close to the U.S. border and are given special tax breaks by the Mexican government
26
importing or exporting advanteges
1. Small cash outlay 2. Little risk 3. No adaptation necessary
27
importing or exporting Disadvantages
1. Tariffs and taxes 2. High transportation costs 3. Government restrictions
28
Licensing Advantages
1. Increased profitability 2. Extended profitability
29
Licensing disadvantages
1. Inflexibility 2. Competition
30
Strategic alliances or joint ventures Advantages
1. Quick market entry 2. Access to materials and technology
31
Strategic alliances or joint ventures Disadvantages
1. Shared ownership (limits control and profits)
32
Direct investment advantages
1. Enhanced control 2. Existing infrastructure
33
Direct investment disadvantages
1. Complexity 2. Greater economic and political risk 3. Greater uncertainty