BA 304 Exam 2 Review

BA 304 Exam 2 Review - The exam will cover but is not...

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The exam will cover but is not limited to the following concepts from lectures, plus chapters assigned on syllabus: READ CHAPTERS 2,4,6,7,8!!!!!!!!!!! I. Managing in the Organizational Environment (chapter 2): A. Components of the Macro-environment: The most general environment; includes governments, economic conditions, and other fundamental factors that generally effect all org’s. 1. Social Values : Is it restrictive or permissive, global or local? Deals with cultural trends 2. : EPA/OSHA (regulators- take legal action to ensure compliance), tax policies, tax incentives 3. Demographics : Measures of various characteristics of the people who comprise groups or other social units. Helps formulate human resource strategies. Includes immigration, population, and more diverse workforces 4. Technology : “Rural Electrification”—A base of 50 million homes has been observed, noting that TV was accessible to everyone within 14 yrs, internet within 3 yrs, and electricity within 50 yrs, all based on different time periods and technology. a. New production techniques, new products, and better ways of managing and communicating (MIS) 5. Economy: Interest rates, unemployment, stock market all heavily influence how a business can succeed. B. Components of the Competitive Environment: The immediate environment surrounding a firm; includes suppliers, customers, competitors, and the like. 1. Substitutes/Rivals: Other means to accomplish objectives, often thought of as the same. Example of rival includes Ford vs GM, example of substitutes is Southwest Airlines competing with bus co.’s & rental car co.’s b/c they are subs for their service. 2. Suppliers: Establishing beneficial relationships with suppliers (labor unions). Do not want to become too dependant. a. Switching Costs—Fixed costs buyers face when they change suppliers 3. Buyers: Establishing beneficial relationships with customers. An org is at disadvantage if it depends too heavily on customers. 4. New Entrants: Biggest problem is not paying attention to them, becomes a bigger problem w/ fewer barriers to entry. a. Tight distribution channels, laws, patents, govt regulations all barriers to entry
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C. Stakeholders (contributions and inducements): Groups and individuals who affect and are affected by the organization and its output 1. Could be anyone, everyone. We rate them as primary and secondary stakeholders. Primary includes shareholders, employees, and customers. Secondary includes community and government 2. Contribution—What the stakeholders give 3. Inducement—What they get in return, the reason for why they give the contribution D. Strategies for Influencing the Environment 1. Cooperative Action (3 approaches) a. Contracting: Negotiated legal agreement between 2 others. Example b. Cooption: Absorbing a potentially disruptive element into your organization. Example is instead of firing a union, you put 2 union members on the board. c.
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BA 304 Exam 2 Review - The exam will cover but is not...

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