Chapter 3 Flashcards
are primary production factors provided by the environment.
Capital and Labor
transforms these inputs into products and services into production
Organization
are consumed by the environments in return for supply inputs
Products and Services
All organizations, including business firms, become very efficient over time because individuals in the firm develop _____ for producing goods and services.
routines
is a powerful unifying force that restrains political conflict and promotes common understanding, agreement on procedures, and common practices.
Organizational Culture
is one of the greatest difficulties of bringing about organizational change- especially the development of new information system.
Political Resistance
The kind of information systems you find in the business firm and the nature of problems with these systems often reflects the type of _______
organizational structure.
firms and individuals seek to economize on transaction costs, much as they do on production costs.
Transaction Cost Theory
Large, bureaucratic organizations, which primarily developed before the computer age, are often inefficient, slow to change, and less competitive than newly organizations.
IT Flattens Organizations
based more on history and sociology than economics also support the notion that IT should flatten hierarchies.
Post-Industrial Theories
Internet, specially World Wide Web
), has an important impact on the relationships between many firms and external entities, and even on the organization of business processes inside a firm
This is the most widely used model for understanding competitive advantage.
Porter’s Competitive Forces Model
All firms share market space with other competitors who are continuously devising new, more efficient ways to produce by developing their brands and imposing switching costs on their customers
Traditional Competitors
In a free economy with mobile labor and financial resources new companies are always entering the market place. In some industries, there are very low barriers to entry, whereas in other industries, entry is difficult
New Market Entrants
In just about every industry, there are substitutes that your customers might use if your prices become too high. New technologies create new substitutes all the time
Substitute Products and Services