COMD 2050 Chapter : Ch 14
Document Summary
Changing environments- internal and external forces that affect business. External environments: forces and events outside a company that have the potential to influence or affect it. Uber on taxi driving industry: environmental change- rate at which company"s general and specific, stable environments- an environment where rate of environmental change is environments change slow ex. Food distribution business: dynamic environments- rate of environmental change is fast, punctuated equilibrium theory- theory that companies go through long periods of stability followed by short periods of dynamic, fundamental change and then a new equilibrium. Ex: airline industry, went up and down then stabilized. Resource scarcity- abundance or shortage or critical organizational resources in an changing) organization"s external environment. Uncertainty- how well managers can understand or predict which environmental changes and trends will affect their business. General environment- economic, technical, sociocultural and political/legal trends that indirectly affect all organizations.
