Midterms Flashcards
Can shape how a company brands itself, the products they choose to sell and how it interacts with other businesses and regulatory agencies.
General environment / Macro-environment
What are the dimensions of the General Environment?
- Legal-Political Dimension
- International Dimension
- Socio-cultural Dimension
- Technological Dimension
- Economic Dimension
- Natural Dimension
Includes government legislation, regulations, policies and changes to the political environment that will impact a company’s decision-making.
Legal-Political Dimension
Includes events and opportunities in foreign countries.
International Dimension
Represents the demographic characteristics as well as the norms, customs, and values of the general population.
Socio-cultural Dimension
Includes scientific and technological advancements in the industry and society at large.
Technological Dimension
Represents the overall economic health of the country or region.
Economic Dimension
Events that may happen in the Economic dimension
organization functions, consumer purchasing power, unemployment rate, and interest rates
Includes all elements that occur naturally on earth, including plants, animals, rocks, and natural resources such as air, water, and climate.
Natural Dimension
The external environment of an organization which affects its ability to reach business goals
Task environment
Any business or consumer with direct involvement with an organization may be part of the task environment.
Task environment
Dimensions of Task environment (Enumeration)
- Competitors
- Regulators
- Strategic Partners
- Suppliers
- Customers
Generally looks for higher margins and provides unique features to its products, thus trying to create differentiation.
Competitors
Types of competitors (enumeration)
- Direct competitors
- Indirect Competitors
- Replacement Competitors
Businesses offering similar or identical products or services
Direct Competitors
The same category that sells different products or services to solve the same problem.
Indirect Competitors
Both seek to solve the same pain points, but the means are different.
Replacement Competitors
A person or organization appointed by a government to regulate an area of activity such as banking or industry.
Regulators
Examples of regulators (enumeration)
- Regulations
- Strategy
- Governance
- Rules
- Compliance
- Policy
- Standards
- Security
Involves the sharing of resources between two or more individuals or companies to help all involved succeed.
Strategic Partners
A person, company, or organization that sells or supplies something such as goods or equipment to customers
Suppliers
An individual or business purchases another company’s goods or services.
Customers
A set of elements that defines the atmosphere within the company’s structure.
Internal Environment / Micro-environment
Describes the way activities and relationships are carried out inside the business, normally within co-workers.
Internal Environment
Consists of the conditions and forces that exist within the organization.
Internal Environment
Factors of Internal environment (enumeration)
- Physical resources
- Financial resources
- Human resources
- Information resources
- Organization’s Goodwill
- Corporate Culture
Facilities, equipment, land, and other assets.
Physical resources
The funds and assets that finance an organization’s activities and investments
Financial resources
The personnel of a business or organization, employees who get tasks done and do the labor.
Human resources
The media, instruments, and methods for planning, collecting, processing, transmitting, and storing data and information, including telecommunications.
Information resources
The value of a company’s brand name, solid customer base, good customer relations, good employee relations, and any patents or proprietary technology.
Organization’s Goodwill
A set of beliefs and behaviors that guide how a company’s management and employees interact and handle external business transactions.
Corporate culture
Elements of Internal environment (enumeration)
- Owners & Shareholders
- Board of Directors
- Employees
- Organizational culture
- Resources of the Organization
- Organization’s Goodwill
Are people who invested in the company and have property rights and claims on the organization.
Owners & Shareholders
The governing body of the company who is elected by stockholders.
Board of Directors
The most important element of an organization’s internal environment, which performs the tasks of the administration.
Employees / Workforce
The collective behavior of the members in the organization.
Organizational culture
What makes up the organizational culture?
values, the visions, beliefs, habits
The basic building blocks of company authority and can be used to achieve its objective and target.
Resources of the Organization
Different types of resources (enumeration)
- Physical resources
- Human resources
- Financial resources
- Informational resources
- Technological resources
The reputation of an organization is valuable and intangible.
Organization’s Goodwill
Four parts of External Environment Analysis
- Scanning
- Monitoring
- Projecting
- Adapting
Identifies early signals of change in the general environment.
Scanning
Detecting meaning through ongoing observations of environmental changes and trends.
Monitoring
Developing forecasts of anticipated outcomes based on monitored changes and trends
Projecting
Determining the timing and importance of environmental changes and trends for the firm’s strategies and management.
Adapting
The closely observing of meaningful changes to see if an important trend is emerging from among those spotted through scanning
Monitoring
The study of all segments in the general environment and often reveals ambiguous, incomplete, or unconnected data and information.
Scanning
Predicting of possible trends based on information gathered from scanning and monitoring
Projecting
Interpreting and applying the gathered information into the business process to produce products or services that can compete in the business industry.
Adapting
