Organziation, Structure, Process
Chapter 3: Organizing in a changing global environment
Chapter 3: Organizing in a changing global environment
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Flashcards
an Environment is....
the set of forces surrounding an organization that have the potential to affect the way it operates and its access to scarce rescources.
scarce rescources include:
- raw materials
- skilled employees an organization needs to produce goods and services
- information it needs to improve technology or decide on its competitve strategy
- support of outside stakeholders (customers, banks, financial institutions)
Forces in the environment that affect an organizations ability to secure these scarce rescources include:
- competition from rivals for customers
- rapid change in technology
- increase in the price of important inputs that raises operating costs.
What is an organization?
- a tool used by people to coordinate their actions to obtain something they desire or value
- is intangible
- is a social system, with its own identity and culture
- is changing and developing, constantly adjusting to new needs and forces and environmental changes
What is Entrepreneurship?
is the process by which people recognize opportunities to satisfy needs, and then gather and use rescources to meet those needs
Organizational domain is...
The particular range of goods and services that the organization produces and the customers and other stakeholders it serves
Why do organizations exist?
-> to increase the value that an organization can create
- increase specialization and division of labor
- use large scale technology
- manage the external environment
- economize on transaction costs
- exert power and control
How do organizations create value?
takes place at three stages:
- input (raw materials, money, HR, information & knowledge)
- conversion (machinery, computers, human skills and abilities)
- output (finished goods, services, dividends, salaries, value for stakeholders)
What is strategy?
Consists of the combination of competitive moves around business approaches used by managers to run the company.
"game plan" to:
- attract and plese customers
- stake out a market position
- compete succesfully
- grow the business
- achieve targeted objectives.
What are the three big strategic questions?
- Where we are now?
- Where do we want to go?
- How will we get there? (-> strategy)
What is organizational theory?
The study of how organizations function and how they affect and are affected by the environment in which they operate.
