Exam 2 Study Guide

Exam 2 Study Guide - Paul Ramirez BA 304 Study Guide Exam 2...

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Paul Ramirez BA 304 Study Guide Exam 2 MANAGING IN THE ORGANIZATIONAL ENVIRONMENT EXTERNAL AND INTERNAL ENVIRONMENT Module 2: Environment Strategy International Structure Culture Entrepreneurship COMPONENTS OF THE MACROENVIRONMENT Social Values Demographics Technology: People acceptance of technology (change) EX) 50 Million Households: Electricity: 34 years Television: 14 years Internet: 3 years *People are much more willing to accept new technology Economy COMPONENTS OF THE COMPETITIVE ENVIRONMENT Substitutes: Modes of Transit Rivals: Competitors Suppliers: Need for product Buyers: STAKEHOLDERS
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Groups and Individuals who affect and are affected by the organization and its output *Everyone who lives downstream is a stakeholder MAKE A CONTRIBUTION →→→ IN RESPONSE TO AN INDUCEMENT STAKEHOLDER CONTRIBUTION INDUCEMENT Shareholder Capital Gain (on stock price ↑), Dividend Employees -Time & Labor -Creativity -Ideas -Passion -Compensation -Status -Sense of self Government -FDA -DSHA -EPA -General Welfare STRATEGIES FOR INFLUENCING THE ENVIRONMENT Cooperative Action -Contracting: Ex) Joe Pa wearing NIKE -Cooptation: Absorbing new elements into organizations to avert new threats -Coalition: Independent Action -Competitive Aggression: Make a deal with competitors. EX 1) Agreeing to an ethics code EX 2) Jack Daniels not on TV competing against Bourbon -Competitive Pacification: -Public Relations: Deliberate attempt to improve your image -Voluntary Action: Committing to a cause; sometimes good Public Relations -Legal Action: Ex) Taking photos of Tiger Woods and making a poster -Political Action:
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Moving to a Different Environment -Domain Selection: Choose where you want to play -Diversification: Moving into new markets -Mergers & Acquisitions: Joining of Companies -Divestiture: If it doesn’t work, trash it ENVIRONMENTAL ATTRACTIVENESS CONSIDER ↓ IF PLAYER NOW IF THINKING ABOUT IT # of Competitors Many (-) Few (+) Many (-) Few (+) Substitutes Many (-) Few (+) Many (-) Few (+) Capital Requirements (Barriers to Entry) High (+) Low (-) High (-) Low (+) Brand Loyalty (Depends on Product/Market Share) High (-) Low (+) High (-) Low (+) STRATEGIC MANAGEMENT AND STRATEGIC PLANNING (From Text) Strategic Management: refers to overall, long-run management. That includes planning, organizing, leading, and controlling effectively and efficiently over the long run Strategic Planning: refers to the process of making plans and decisions that are focused on long-run performance THE STRATEGIC MANAGEMENT PROCESS (4 Stages) Strategic Analysis Phase: Addresses the question, What is the current position of the organization? The information gathered during the strategic analysis serves as a foundation for the formulation of the organization’s strategic plan
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Exam 2 Study Guide - Paul Ramirez BA 304 Study Guide Exam 2...

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