Management-Leading & Collaborating in a Competitive World–Chapter 2

open systems
organizations that are affected by, and that affect, their environment.
inputs
Goods and services organizations take in to create products or services.
outputs
The products and services organizations create.
external environment
All relevant forces outside a firm’s boundaries, such as competitors, customers, the government, and the economy.
competitive environment
The immediate environment surrounding a firm; includes suppliers, customers, rivals, and the like.
macroenvironment
The general environment; includes governments, economic conditions, and other fundamental factors that generally affect all organizations.
demographics
Measures of various characteristics of the people who make up groups or other social units.
barriers to entry
Conditions that prevent new companies from entering an industry.
switching costs
Fixed cost buyers face when they change suppliers.
supply chain management
The managing of the network of facilities and people that obtain materials from outside the organization, transform them into products, and distribute them to customers.
final consumer
Those who purchase products in their final form.
intermediate consumer
A customer who purchases raw materials or wholesale products before selling them to final customers.
environmental uncertainty
Lack of information needed to understand or predict the future.
environmental scanning
Searching for and sorting through information about the environment.
competitive intelligence
Information that helps managers determine how to compete better.
scenario
A narrative that describes a particular set of future conditions.
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.
empowerment
The process of sharing power with employees, thereby enhancing their confidence in their ability to preform their jobs and their belief that they are influential contributors to the organization
buffering
creating supplies of excess resources in case of unpredictable needs.
smoothing
leveling normal fluctuations at the boundaries of the environment.
flexible processes
methods for adapting the technical core the changes in the environment.
independent strategies
strategies that an organization acting on its own uses to change some aspect of it’s current environment.
cooperative strategies
strategies used by two or more organizations together to manage the environment.
strategic maneuvering
an organization’s conscious efforts to change the boundaries of its task environment.
domain selection
entering a new market or industry with an existing enterprise.
diversification
a firm’s investment in a different product, business, or geographic area.
merger
one or more companies combining with another.
acquisition
one firm buying another.
divestiture
a firm selling one or more business.
prospectors
companies that continually change the boundaries for their task environments by seeking new products and markets, diversifying and merging , or acquiring new enterprises.
defenders
companies that 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.