Chapter 3 Flashcards
Organizational Environments & Cultures
All events outside a company that have the potential to influence or affect it
External Environments
The rate at which a company’s general and specific environments change
Environmental Change
An environment in which the rate of change is slow
Stable Environment
An environment in which the rate of change is fast
Dynamic Environment
The theory that companies go through long periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolutionary periods), and then a new equilibrium.
Punctuated Equilibrium Theory
The number and the intensity of external factors in the environment that affect organizations.
Environmental Complexity
An environment with few environmental factors
Simple Environments
An environment with many environmental factors
Complex Environment
The abundance or shortage of critical organizational resources in an organization’s external environment
Resource Scarcity
Extent to which managers can understand or predict which environmental changes and trends will affect their businesses
Uncertainty
The economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations
General Environment
The customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business
Specific Environment
Indices that show managers’ level of confidence about future business growth
Business Confidence Indices
The knowledge, tools, and techniques used to transform inputs into outputs
Technology
Companies in the same industry that sell similar products or services to customers
Competitors
