lecture #1

Question 1

External Environment

Answer 1

anything external to the firm, factors beyond an organization

Question 2

organizational boundaries

Answer 2

That which separates the organization

Question 3

The 6 types of organizational environment

Answer 3

• Economic
• technological
• political (legal)
• Socio ( culture)
• business
• Global

Question 4

Uses in technology

Answer 4

Way to communicate with others
- (human knowledge)

Research & development
- (provides new ideas for products & services)

Process technologies
- (used to improve a firms performance in international operations)

Question 5

What is ERP?
(in a technological environment)

Answer 5

Enterprise Resource Planning
(a large-scale information system for organizing and managing a firm process across product lines)

Question 6

ERP Application

Answer 6

• supply chain management
  (forecasting, purchasing, distribution)
• accounting and finance
  (accounts payable and receivable, asset management)
• manufacturing
  (material requirements planning, scheduling)

Question 7

The poiltical legal envieramnt

Answer 7

reflects the relationships between business and government
ex. regulations

• politically stable
• international relations

Question 8

Pro or Anti- Business sentiment

Answer 8

The Canadian government has put a halt on bank mergers

Question 9

Government activities

Answer 9

• crown corporations
• laws and regulations
• taxation & financial policies
• financial aid
• purchasing polices

Question 10

crown corporations

Answer 10

government-owned companies
- ex. EDS, CBS BOC, Canada Post

• some provinces use crown corporations to invest in the province
• The trend is toward privatization

Question 11

taxation and Finacail poliesces

Answer 11

federal government
- relies on income tax and other revenue to find activities

provincial government
- relies on income tax and sales tax for revenue

municipal government (NS - HRM)
- rely on property taxes for their revenue

Question 12

purchasing polises

Answer 12

Fiscal policy
- how the gov collects and spends tex dollars
- The federal gov is the largest buyer of goods and services
- federal gov can be used to influence regional economics and companies

Question 13

Department of Finance (BOC)

Answer 13

• determines fiscal and monetary policy
• controls money supply, interest rates & taxes

Question 14

the socio-cultural environment

Answer 14

costumes, values, attitudes, and demographic characteristics of the society in which an organization functions

• customer preferences & tastes
  (very across & within national boundaries )
  (vary within the same country)
• ethical compliance and responsible business behaviour

Question 15

Five Forces MODLE

Answer 15

Made by economist Micheal E porter

1. Bargaining power of supplies
2. risk of entry by potential competitors
3. bargaining power of budget
4. threat of substitute producers

ALL CONNECT TO

5. Rivalry amount established firms

Question 16

How do we stay on top of potential competitors? (BAGE)

Answer 16

• brand loyalty
• absolutes cost advantage
• economics of scale
• government regulations

Question 17

Rivalry among established companies

Answer 17

If the rivalry is weak …
- companies can increase prices & increase profitably

If rivalry is strong …
- price wars
- price drops or profitably drops

Question 18

Bargaining power of buyers

Answer 18

Highest when…
- many small sellers (few larger buyers)
- buyers purchase in larger quantities
- buyers account for a large percentage of sellers’ total orders
- buyer can vertically be integrated

Question 19

bargaining power of supplies

Answer 19

Highest when…
- seller’s products have few substitutes and are important to buyers
-when the buyers’ industry Is not an important customer to suppliers