Chapter 3 Flashcards
Environment
The set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce resources
Organizational Domain
The particular range of goods or services that an organization produces and the customer and other stakeholders it serves
Specific environment
The forces from outside stakeholder groups that directly affect an organization’s ability to secure resources
Global supply chain management
The coordination of the flow or raw materials, components, semifinished goods and finished products around the world
General environment
The forces that shape the specific environment and affect the ability f all organizations in a particular environment to obtain resources
Environmental complexity
The strength, number, and interconnectedness of the specific and general fires that an organization has to manage
Environmental dynamism
The degree to which forces in the specific and general environments change quickly over time and thus contribute to the uncertainty an organization faces
Environmental richness
The amount of resources available to support an organization’s domain
Resources dependence theory
A theory that argues the goal of an organization is to minimize its dependence on the organizations for the supply of scarce resources in its environment and to find ways of influencing them to make resources available
Symbiotic interdependencies
Interdependencies that exist between an organization and its suppliers and distributors
Competitive interdependencies
Interdependencies that exist among organizations that compete for scarce inputs and outputs
Reputation
A state in which an organization is held in high regard and trusted by other parties because of its affair and honest business practices
Cooptation
A strategy that manages symbiotic interdependencies by neutralizing problematic forces in the specific environment
Interlocking directorate
A linkage that results when a director from one company sits on the board of another company
Strategic alliance
An agreement that commits two or more companies to share their resources to develop a new joint business opportunity
Network
A cluster of different organizations whose actions are coordinated by contracts and agreements rather than through a formal hierarchy of authority
Keiretsu
A group of organizations, each of which owns shares in the other organizations in the group, that work together to further the group’s interests
Joint venture
A strategic alliance among two or more organizations that agree to jointly establish and share the ownership of a new business
Collusion
A secret agreement among competitors to share information for a deceitful or illegal purpose
Cartel
An association of firms that explicitly agree to coordinate their activities
Third-party linkage mechanism
A regulatory body that allows organizations to share information and regulate the way they compete
Transaction costs
The costs of negotiating, monitoring, and governing exchanges between people
Transaction cost theory
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 organizations
Specific assets
Investments-in skills, machinery, knowledge, and information-that create value in one particular exchange relationship but have no value in any other exchange relationship
