CHAPTER 3 - CHAPTER 3 External environments All events outside a company that have the potential to influence or affect it Environmental change The rate

CHAPTER 3 - CHAPTER 3 External environments All events...

This preview shows page 1 - 3 out of 6 pages.

CHAPTER 3 External environments All events outside a company that have the potential to influence or affect it. Environmental change The rate at which a company's general and specific environments change. Stable environment An environment in which the rate of change is slow. Dynamic environment An environment in which the rate of change is fast. Punctuated equilibrium theory The theory that companies go through long periods of stability, followed by short periods of dynamic, fundamental change, and then a new equilibrium. Environmental complexity The number and the intensity of external factors in the environment that affect organizations. Simple environment An environment with few environmental factors. Complex environment An environment with many environmental factors.
Resource scarcity The abundance or shortage of critical organizational resources in an organization's external environment. Uncertainty Extent to which managers can understand or predict which environmental changes and trends will affect their business. General environment The economic, technological, sociocultural, and political trends that indirectly affect all organizations.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture