Principles of Management- chp 2

Principles of Management- chp 2 - Principles of Management...

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Principles of Management Chp 2 Environment 1. Competitive - immediate environment surrounding a firm: - Competitors- identify them and see how they compete - Substitutes- potential threat- an alternative - Compliment- potential opportunity- buy more product if they use it with another - Customers- o Final- purchase products in their finished form o Intermediate- purchase raw materials or wholesale products before selling them to final customers - Suppliers- supply info, materials, capital, people o Switching costs - fixed costs buyers face when they change suppliers - New entrants- o Barriers to entry : conditions that prevent new companies from entering an industry- money requirements, government policy, etc 2. Macroenvironment- general environment: - Regulators-specific gov organizations - Economy- interest and inflation rates affects availability and cost of capital , growth opportunities, prices, costs, and consumer demand for product - Technology-creates new products/advanced techniques
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This note was uploaded on 02/11/2011 for the course BUSINESS 33:620:300 taught by Professor Hamilton during the Spring '11 term at Rutgers.

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Principles of Management- chp 2 - Principles of Management...

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