Module 2 Flashcards
Macroenvironment
-All organizations operate in a macroenvironment,
-defined by general elements in the external environment relevant to strategic decisions.
-Top management must consider external factors before taking action.
-Macroenvironment includes the
~economy,
~technology,
~laws and regulations,
~demographics,
~sustainability and the natural environment.
Competitive Environment
-Organizations interact directly with others in a closer, more immediate competitive environment.
Identify elements of the competitive environment.
-rivalries among current competitors,
-the impact of new entrants,
-substitute and complementary products,
-suppliers,
-consumers.
What is Environmental uncertainty
Managers do not have enough information about the environment to understand it or predict the future.
Summarize how organizations respond to environmental uncertainty.
-Environmental scanning,
-Scenario development,
-Forecasting,
-Benchmarking,
-Selecting your environment,
-Influencing your environment,
-Adapting to the environment,
-Choosing an approach
Describe how environmental forces influence organizations.
-Analyzing environmental forces, in both macroenvironment and the competitive environment,
-Managers identify opportunities and threats that might affect the organization.
-Managers also must develop methods for collecting and interpreting information.
What is Organizational culture
The set of important assumptions about the organization and its goals and practices that members of the company share.
Describe how an organization’s culture affects its response to its external environment.
-Organizational culture affects how a company interacts with consumers.
-A weaker culture can cause poor performance
-A stronger culture can be more effective
-A culture aligned with its external environment helps the organization succeed.
Netflix, Amazon, and YouTube have recently emerged as serious and successful content providers, attracting viewers away from traditional networks such as ABC, CBS, and NBC. The success of these nontraditional providers demonstrates the power in the competitive environment held by new competitors, or new entrants to the marketplace. To effectively compete with these new entrants, executives at traditional networks will take advantage of barriers to entry, such as …
Distribution channels
Although a top executive team may have unique ____ strengths and ideas about its goals, it must consider ____ factors before taking actions.
-internal
-external
Haru, a new manager at an electronics company, has been asked to focus on the competitive environment of the organization. Which of the following is a factor Haru should focus on?
Rivals
If many factors prevent new companies from entering an industry, the …
Threat to established firms is less serious.
What is an example of a potential substitute product?
Chipotle Burrito Bowl for a Chick fil la meal
Quality Marketing, LLC uses TonerPlus copiers and printers. They have trained their employees to use these printers and copiers and have invested in inventory to replace parts and equipment used exclusively on TonerPlus items. The new operations manager wants to change, but is facing the reality of …
High switching cost
Suave and Debonair, Inc, a chain of men’s clothing stores, is facing increased competition. CEO Pablo Espinosa has tried several tactics - all unsuccessful - to influence his business environment: slashing prices, offering seasonal promotions to smooth out sales, contracting with wholesalers in advance of seasonal rushes to prevent inventory depletion, and appointing the president of the chamber of commerce in his state to his board of directors. Now, Pablo is considering identifying the best-in-class performance by other companies to compare his processes to theirs. Pablo is now considering ______ as a tactic to manage the business environment.
Benchmarking
