L E C T U R E 1

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ls, and the like. Macroenvironment The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations. The Economy The economic environment dramatically affects managers’ ability to function effectively and influences their strategic choices. Interest and inflation rates affect the availability and cost of capital, growth opportunities, prices, costs, and consumer demand for products. In publicly held companies, managers may feel required to meet Wall Street’s earnings expectations. Managers may focus on short ­term results at the expense of long ­term success Some managers may be tempted to engage in unethical or unlawful behavior that misleads investors Technology Technological advances create new products, advanced production techniques, and better ways of managing and communicating. As technology evolves, new industries, markets, and competitive niches develop. Laws and Regulations ______________________________________________________________________________ there is also Social Environment... Competitors There are many direct competitors Industry growth is slow Product/service is not easily differentiated New entrants conditions that prevent new companies from entering an industry capital requirements, restrictive distribution channels Substitutes and Complements Substitutes; alternative products or services Complements: products or services that increase purchases of other products Suppliers Suppliers provide resources or inputs needed for production Switching costs fixed costs buyer face if they change suppliers Customers Final customers purchase products in their finished form Intermediate customers purchase raw material or wholesale products before selling them to final customers Environmental Analisis Environmental scanning searching out information that is unavailable to most people and sorting that information to interpret what is important and what is not. Competitive intelligence Information that helps managers determine how to compete better. Scenario development A narrative that describes a particular set of future conditions Best ­case, worst ­case Forecasting Method for predicting how variables will change the future Benchmarking The process of comparing an organization’s practices and technologies with those of other companies. Environmental Uncertainty Lack of information needed to understand or predict the future. Environmental complexity The number of issues to which a manager must attend as well as the interconnectedness of these issues Environmental dynamism The degree of discontinuous change that occurs within an industry Changing the Environment You are In Strategic maneuvering An organization’s conscious efforts to change the boundaries of its task environment Domain selection Entrance to a new market or industry with an existing expertise Diversification Occurs when a firm invests in a different product, business, or geographic area Mergers One or more companies combine with another Acquisitions One firm buys another Divestiture A firm sells one or more businesses Prospectors Continuously change the boundaries of their task environment by seeking new products and markets, diversifying and merging, or acquiring new enterprises Defenders Stay within a stable product domain as a strategic maneuver Organization Culture The set of important assumptions about the organization and its goals and practices that members of the company share In strong cultures, the majority of people within the organization agree on organizational goals In weak cultures, the majority of people within the organization disagree on organizational goals Competing Values Model of Culture...
View Full Document

This note was uploaded on 09/29/2013 for the course MARKETING 101 taught by Professor Aarts during the Fall '13 term at De Haagse Hogeschool.

Ask a homework question - tutors are online