Management - Chapter 3
According to Porter, what do successful managers do? - correct answer-· Managers do more
than simply react to the environment; They act in ways that actually shape or change the
organization's environment.
competitive environment - correct answer-The immediate environment surrounding a firm;
includes suppliers, customers, rivals, and the like.
o rivalry among existing competitors and the threat of new in entrants
o the threat of substitutes and
o complementary products and
o bargaining power of suppliers
o buyers
demographics? and Examples - correct answer-· demographics are statistical characteristics
of a group or population
· in organization's customers - the university's faculty and staff - organizations currently labor
force can be described statistically in terms of their members ages, genders, education
levels, incomes, occupations, and so forth
environmental uncertainty - correct answer-· Means that managers do not have enough
information about the environment to understand or predict the future.
o Uncertainly arises from tow related factors
§ Complexity - the number of issues to which a manager must attend and the degree to
which they are interconnected
§ Dynamism - the degree of discontinuous change that occurs within the industry,
Explain the process of open systems - correct answer-they use inputs like good and services
from their environment to create good and services that are outputs to their environment
external environment - correct answer-All relevant sources outside of firm's boundaries -
competitors, customers, the government, and the economy
· Refers to all the relevant forces inside the firm's boundaries such as his managers,
employees, resources, and organizational culture
five components of an organization's macro environment - correct answer-· Laws and
regulations
· economy
· technology
· demographics
· social values
How are suppliers important to an organization? - correct answer-· suppliers that can raise
their prices or provide poor quality goods and services
· labor unions can go in strike or demand higher wages
· workers may produce defective work
, · powerful suppliers can reduce an organization's profits, particularly if the organization
cannot pass on price increase to its customers.
How can an organization be at a disadvantage with customer power? - correct answer-· An
organization is at disadvantage it depends too heavily on powerful customers those large
purchases or can easily find alternative places to buy
· your firm's biggest customers, especially if they can buy from other sources, will have the
greatest negotiating power over you
How can other products affect a company's performance? - correct answer-By being
substitute for or complements of the company's offering.
how did companies result women with families in the workforce? - correct answer-· Firms
provide benefits as a way of increasing the source of competitive advantage: inexperienced
workforce
· providing benefits working only 20 hours a week
· maternity leave
How did tech organizations change people's mind about video games - correct answer-· The
invention of Dance Dance Revolution and Nintendo's Wii Sports - exercise oriented video
games help increase the mobility of older patients with major deliberating diseases and
reduce obesity in younger children
How do attitudes affect organizations - correct answer-· Societal trends regarding how
people think and behave have major implications for management of the labor force,
corporate social actions, and strategic decisions about products and markets
How do companies compete in volatile environments? - correct answer-· They rely on it
knowledgeable and skilled workers
How do customers determine an organizations success? - correct answer-· Customers
purchase the goods or services an organization offers. Without them, the company wouldn't
survive.
How do good managers regard scenarios? - correct answer-· The effective managers regard
scenarios they develop as living documents
· they constantly update the scenarios to take into account the relevant new factors
emerging significant changes in the economy or actions by competitors
· try to identify strategies that are most robust across all of the different scenarios
How do laws and regulations affect organizations in a negative way? - correct answer-- U.S.
government policies imposed strategic constraints on organizations but also provided
opportunities
- The government can affect business opportunities through tax laws, economic policies,
labor laws, and international trade rulings
- Foreign Corrupt Practices act (FCPA) prohibits Americans from bribing foreign officials
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