Lesson #2 Flashcards
Stable environment
Slow rate of change
Dynamic environment
Fast rate of change
Punctuated equilibrium theory
Companies going through periods of stability, instability and back to stable
Resource scarcity
Abundance or shortage of resources
General environment
Trends that affect all organizations
Specific environment
Unique factors that directly affect companies
4 components of the general environment
Economic
Technological
Socio cultural
Political
Reactive customer monitoring
Addressing problems after they occur
Proactive customer monitoring
Addressing problems before they occur
Supplier dependence
Degree to which a company relies on a supplier
Buyer dependence
Degree to which a company relies on a buyer
Opportunistic behaviour
Where one party benefits at the other’s expense
Advocacy group components
Group of concerned citizens who band together to try and influence businesses
Media advocacy
Tactic that involves ensuring extensive media coverage
Environmental scanning
Searching for issues that might affect organization in the future
