External & International Management Environment Flashcards
What is the general environment?
Conditions in the society in which the organisation operates
What is the Systems Theory of Organisations?
A view of organisations as sets of interrelated parts that function together to achieve a common purpose
What is the external organisational environment?
The forces and conditions outside the organisations boundaries that can potentially affect it
What are the dimensions if the general environment?
Technological
Economic
Political
Global
What are the dimensions if the specific environment?
Competitors Customers Suppliers Regulators Strategic Partners Interest Groups Employees, Labour Markets, Unions
What is the sociocultural dimension of the general environment?
The cultural characteristics and the demographic conditions of the society in which the organisation operates
What is the specific environment?
The organisations, groups and individuals with whom an organisation interact s as it conducts it’s business
What is the systems view of organisations process?
Inputs -> transformation -> outputs
Feedback/ environment
What is the technological dimension of the general environment?
The knowledge, tools and methods used to convert resources into products and services
What is the economic dimension of the general environment?
The general economic health of the country in which the organisation operates
*Type of economic system/economic conditions
What is the political/legal dimension of the general environment?
The legal and governmental systems within which an organisation operates, including the general conditions and stability of the political system, government regulation and government spending
What is the global dimension of the general environment?
Factors that operate across national boundaries
What is Environmental uncertainty?
how well managers can understand or predict the changes and trends in the environments affecting their organisations
What determines Environmental Uncertainty?
Dynamism
Environmental complexity
Resource availability
What is dynamism?
The rate and predictability of change in the elements of an organisations environment
Dynamic = quick changes Stable = slow changes
What is environmental complexity?
The number of external factors affecting the organisation and the extent of their influence
Simple = few factors Complex = many factors
What is resource availability?
The abundance of critical resources in an organisations external environment
Abundant = plenty of resources Scarce = few resources
What equals low environmental uncertainty?
Simple environment + plentiful resources + slow change
What equals high environmental uncertainty?
Complex and dynamic environment + scarce resources + quick change
Environmental uncertainty determines…
Attention to conditions and trends
Responsiveness to new information and circumstances
How do customers affect organisations?
Price, quality and products
How do competitors affect organisations?
Impact prices & products
Costs and availability of supplies
Access to distribution channels
Profitability
How do suppliers affect organisations?
Determine the quality, availability and cost of inputs
Product and service quality, production capacity, competitiveness, and profitability
Supplier dependence
Why are employees important to an organisation?
Employees provide skills, knowledge, effort and creativity that support organisational oporations
How do strategic partners affect organisations?
Combine resources
Share ideas
Learn from each other
How do regulators affect organisations?
Enforce the rules
How do interest groups affect organisations?
Attempt to influence organisational behaviour - negotiations
What is social responsibility?
When firm takes social actions in response to popular social needs
How can organisations demonstrate socially responsible actions?
Green management
Socially responsible management - requires considering social impacts on society
How can organisations become more ethical?
Rules
Policies
Code of ethics
What do employees expect from organisations and managers?
Flexible
On-site child care
Job sharing
Part-time
What do customers expect from organisations and managers?
Want to be satisfied. High quality, quick service, value for money.
