Chapter 2: Managing in a global environment Flashcards
Organization boundaries and environments
external (factors beyond an organization’s boundaries that cannot be controlled)
Organizational (that which separates the organization from its environment)
Organizational environments
- economic
- technical
- political-legal
- socio-cultural
-business - global
- emerging challenges and opportunities
Key economic goals
- growth (economic)
- stability (economic)
- full employment
Business cycle
pattern of short-term ups and downs (peak, recession, trough, and recovery)
aggregate output
total quantity of goods and services produced by an economic system during a given period
standard of living
total quantity and quality of goods and services that a country’s citizens can purchase with their currency
productivity
compares the output of an economic system with the resources that are needed to produce that output
Gross national product (GNP)
all goods and services produced by a national economy within a given period regardless of production location
Gross domestic product (GDP)
all goods and services produced by a national economy within a given period with domestic factors of production
Balance of trade
exports - imports
national debt
amount of money government owes its creditors
threats to economic statibility
inflation, deflation, unemployment
inflation
widespread price increases in economic system
Consume price index (CPI)
a tool to measure inflation
deflation
a period of generally falling prices
types of unemployment
frictional (workers willingly between jobs), seasonal (only have work during specific seasons of year), cyclical (only have work when economy is good - unemployed because business has decreased profits), structural (worker lacks skills for jobs)
five forces in business environment
- threats of new entrants
- bargaining power of suppliers
- bargaining power of consumers
- threat of substitutes
- industry rivals
business process management
process-oriented teams (not department-oriented organizations)
Acquisitions and mergers
- can be horizontal, vertical, or conglomerate mergers
- can be friendly or hostile takeovers
Divestitures and spinoffs
selling part of existing business or setting it up as a new corporation
poison pill
- a defense tactic that management can adopt to make a firm less attractive
globalization
integration of markets globally
