Chapter 4 Outline

Chapter 4 Outline - Chapter 4 Outline Global...

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Chapter 4 Outline Global environment -The set forces and conditions that operated beyond an organization’s boundaries but affect a manager’s ability to acquire and utilize resources. -When the forces change in the environment, new opportunities and threats are presented to the managers of the organizations. -Managers have to understand the difference between General Environment and Task Environment General Environment -the wide-ranging global, economic, technological, sociocultural demographic, political and legal forces that affect an organization and its task environment Task Environment - The set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization’s ability to obtain inputs and dispose of its outputs because they influence managers on a daily basis. Four forces of task environment: 1. Suppliers -Individuals and organizations that provide an organization with the input resources that it needs to produce goods and services. 2. Distributors –Organizations that help other organizations sell their goods or services to customers. 3. Customers - Individuals and groups that buy the goods and services that an organization produces. 4. Competitors - Organizations that produce goods and services that are similar to a particular organization’s goods and services. The more competitors there are in the industry, the more prices and profits decrease. The presence of one or more competitors can reduce the prices of goods and services as the companies attempt to gain a larger market share. Potential competitors- Organizations that presently are not in task environment but could enter if they so choose.
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Global outsourcing - the purchase of inputs from overseas suppliers or the production of inputs abroad to lower production costs and improve product quality or design. Barriers to entry-
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Chapter 4 Outline - Chapter 4 Outline Global...

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