Define open system correct answers organizations that are affected by, and that affect, their environment
What is the concept of open systems? correct answers Organizations are open systems and that is, they are affected by and in turn affect their external environments. They use inputs like goo...
MGMT 310, Chapter 3 || All Correct.
Define open system correct answers organizations that are affected by, and that affect, their
environment
What is the concept of open systems? correct answers Organizations are open systems and that
is, they are affected by and in turn affect their external environments. They use inputs like goods
and services from their environment to create goods and services that are outputs to their
environment.
external environment correct answers more than an organization's customers, competitive
partnerships, or supplier relationships: the external environment includes all relevant forces
outside the organization's boundaries.
Inputs correct answers Goods and services that organizations take in and use to create products
or services
Outputs correct answers The products and services organizations create
Characteristics of an attractive environment correct answers Few; high industry growth; unequal
size differentiated
An example of an attractive environment is health technology correct answers because it is one
of the most profitable industries in the United States
An example of un-attractive environment is the newspaper publishing industry correct answers
because it is being replaced by online media
Environmental Dynamism correct answers The degree of discontinous change that occurs within
an industry
Environmental Uncertainty correct answers when management Enlacks information to
understand or predict the future
Environmental uncertainty arises from two related factors: correct answers complexity- the
number of issues to which a manager must attend, and the degree to which they are
interconnected. Industries (e.g., the automotive industry) with many different firms that compete
in vastly different ways tend to be more complex-- and uncertain-- than industries (e.g., airplane
manufacturers) with only a few key competitors.
dynamism- the degree of discontinuous change that occurs within the industry. High growth
industries (e.g., smartphones) with products and technologies that change rapidly are more
uncertain than stable industries (e.g., utilities) where change is less dramatic and more
predictable.
, 2. Economy
3. Technology
4. Demographics
5. Social Values
Macroenvironment affects all organizations regardless of industry, but the competitive
environment affects just the industry. correct answers true
In a competitive environment, Porter's five forces are: correct answers 1. The rivalry among
existing competitors
2. The threat of new entrants
3. The threat of substitute and complementary products
4. The bargaining power of suppliers
5. The bargaining power of buyers
Competitive environment correct answers The immediate environment surrounding a firm;
includes suppliers, customers, rivals, and the like
Barriers to entry correct answers conditions that prevent new companies from entering an
industry
Examples of barriers to entry correct answers Government policy
capital requirements
Brand identification
Cost disadvantages
Distribution channels
Environmental scanning correct answers Searching for and sorting through information about the
environment
What questions to ask in environmental scanning? correct answers 1. Who are our current
competitors?
2. Are there a few or many entry to barriers to our industry?
3. What substitutes exist for our product or service?
4. Is the company too dependent on powerful suppliers?
5. Is the company too dependent on powerful customers?
Answers to the question of environmental scanning help managers develop? correct answers
competitive intelligence
competitive intelligence correct answers information that helps managers determine how to
compete better
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