THE FIRM & ITS ENVIRONMENT Flashcards

1
Q

INCLUDE FACTORS/ELEMENTS SUCH AS INFLATION, RATES OF INTEREST, CHANGING OPTIONS IN STOCK MARKETS AND PEOPLE’S SPENDING HABITS.

A

ECONOMIC

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2
Q

INCLUDE THE CUSTOMERS’ CHANGING VALUES AND PREFERENCES

A

SOCIOCULTURAL

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3
Q

REFER TO NATIONAL OR LOCAL LAWS, INTERNATIONAL LAWS AND RULES AND REGULATIONS THAT INFLUENCE ORGANIZATIONAL MANAGEMENT.

A

POLITICO-LEGAL

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4
Q

GENDER, AGE, EDUCATIONAL LEVEL, INCOME, THE NUMBER OF FAMILY MEMBERS, GEOGRAPHIC ORIGIN, ETC. MAY ALSO INFLUENCE SOME MANAGERIAL DECISIONS IN ORGANIZATIONS.

A

DEMOGRAPHIC

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5
Q

COMPANIES INVOLVE THE USE OF VARIED TYPES OF ELECTRONIC GADGETS AND ADVANCED TECHNOLOGY SUCH AS COMPUTERS, ROBOTICS, MICROPROCESSORS, ETC.

A

TECHNOLOGICAL

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6
Q

RELATED TO INCREASING NUMBER OF GLOBAL COMPETITORS AND MARKETS, AS WELL AS THE NATURE AND CONDITIONS OF THE CHANGING NATURAL ENVIRONMENT.

A

WORLD AND ECOLOGICAL

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7
Q

Parties likely to be affected by the activities of the organization while customers are those who patronize the organization’s products and services.

A

Stakeholders

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8
Q

Those who ensure the organization’s continuous flow of needed reasonably priced inputs or materials required for producing their goods and rendering their services.

A

Suppliers

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9
Q

Special-interest groups that try to influence the organization’s decisions or actions.

A

Pressure groups

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10
Q

Provide the company with the financial support it needs.

A

Investors or owners

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11
Q

Those who work for an employer in exchange for salaries/wages or non-monetary benefits.

A

Employees

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12
Q

A widely used tool to identify the external forces that may affect an organization both positively and negatively.

A

PESTEL Analysis

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13
Q

These factors determine the IMPACT of government and government policy on a particular organization or a specific industry. It includes trade, fiscal, and taxation policies, among others.

A

Political

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14
Q

These factors determine the IMPACT of the economy and its performance to an organization and its profitability. These include interest rates, employment or unemployment rates, raw material costs, and foreign exchange rates, among others.

A

Economic

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15
Q

These factors determine the IMPACT of the social environment and emerging trends to the business profitability of an organization. These include changing family demographics, education levels, cultural trends, attitude changes, and changes in lifestyles, among others.

A

Social

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16
Q

These factors determine the IMPACT of technological innovation and development on a particular market or industry. These include changes in digital or mobile technology, automation, research, and development.

A

Technological

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17
Q

These factors determine influence of the surrounding environment and the impact of ecological aspects to a market or industry. These include climate, recycling procedures, carbon footprint, waste disposal, and sustainability.

A

Environmental

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18
Q

These factors determine the importance of understanding legal laws and procedures on a given territory where a business operates. These include employment legislation, consumer law, health, and safety, international as well as trade regulation and restrictions.

A

Legal

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19
Q

A method of predicting how variable in the environment will alter the future of business.

A

Business predictions or business forecasting

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20
Q

Defined as the process of measuring or comparing one’s products, services, and practices with those of the recognized industry leaders to identify ares for improvement.

A

Benchmarking

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21
Q

A common tool used to assess and evaluate the competitive strength and position of a business.

A

Porter’s Five Forces

22
Q

Porter’s 5 Forces is developed by?

A

Michael E. Porter

23
Q

This force analyzes how suppliers can easily influence price increases.

A

Supplier Power

24
Q

This force analyzes how buyers can easily influence price decreases.

A

Buyer Power

25
Q

This force examines the intensity of competition in the market place.

A

Competitive Rivalry

26
Q

This force is threatening when buyers can easily find substitute products with attractive prices or better quality and when buyers can switch from one product or service to another with little cost.

A

Threat of substitution

27
Q

This force determines how easy or difficult it is to enter a particular industry.

A

Threat of new entrants

28
Q

A framework used to evaluate a company’s competitive position must be executed to examine important stakeholders like suppliers and customers within the firm’s environment.

A

SWOT Matrix

29
Q

SWOT Matrix components

A
  1. Strengths
  2. Weaknesses
  3. Opportunities
  4. Threats
30
Q

These are the internal areas where an organization excels and the factors which separate an organization from its competitors.

A

Strengths

31
Q

These are the internal areas that hinder an organization from performing at its optimum level.

A

Weaknesses

32
Q

These are favorable external factors that could give an organization a competitive advantage.

A

Opportunities

33
Q

These are the factors that may pose potential harm to an organization.

A

Threats

34
Q

PHASES OF ECONOMIC DEVELOPMENT

A

• Traditional Society
• Pre-conditions for take-off
• Take-off
• Drive to maturity
• Age of mass consumption

35
Q

This is an agricultural economy of mainly subsistence farming, little of which is traded.

A

Traditional Society

36
Q

Agriculture becomes more mechanized and more output is traded.

A

Pre-conditions for take-off

37
Q

The manufacturing industry assumes greater importance, although the number of industries remains small.

A

Take-off

38
Q

Industry becomes more diverse.

A

Drive to maturity

39
Q

Output levels grow, enabling increased consumer expenditure.

A

Age of mass consumption

40
Q

Forms of business organizations

A

• Simple business organizations
• Functional business organizations
• Divisional business organizations
• Profit business organizations

41
Q

have few departments, centralized authority with a wide span of control and with few formal rules and regulations.

A

Simple business organizations

42
Q

Those group together those with similar or related specialized duties that introduce the concept of delegation of authority to functional managers like the personnel manager, sales manager, or financial manager, but allow CEOs to retain authority for strategic decisions.

A

Functional business organizations

43
Q

Made up of separate business units that are semi-autonomous or semi-independent.

A

Divisional business organizations

44
Q

Designed to achieve their organization’s mission, vision, goals, and objectives and maintaining their organizational stability through income generation and profit-making activities.

A

Profit business organizations

45
Q

Designed to achieve their organization’s mission, vision, goals, and objectives providing service to clients without expecting monetary gains or financial benefits for their endeavors.

A

Non-profit organization

46
Q

5 Types of business organization

A
  1. Team structures
  2. Matrix business organizations
  3. Project business structure
  4. Boundaryless business organization
  5. Virtual business organization
47
Q

Where the organization as a whole is made up of small teams that work together to achieve the organization’s purpose ; popular in collective culture.

A

Team structures

48
Q

Those which assign experts or specialists belonging to different functional departments to work together on one or more projects.

A

Matrix business organizations

49
Q

A business organizational form with flexible design where the employees work on a project assigned to them within a definite time frame ; projects may be short-term or long-term and members disband when the project is completed.

A

Project business structure

50
Q

A business organization whose design eliminates vertical, horizontal, or external boundaries and is descrito be flexible and unstructured ; there are non-barriers to information flow and therefore completion of work is fast.

A

Boundaryless business organization

51
Q

Made up of a small group of full-time workers and outside experts who are hired temporarily to work on assigned projects ; members are physically dispersed and usually communicate electronically.

A

Virtual business organization