COMMERCE 1BA3 Lecture Notes - Lecture 17: Social Exchange Theory, Vertical Integration, Job Shop
2 Aug 2016
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Everything in enviro, and when not paid attention, problems are caused. 2any change in legislation (any laws; human rights, etc) There"s a multitude of environmental variables to pay attention to. Closed system: held by leaders/decision makers who believe that their companies are self-contained (ex. Icarus); don"t need to pay attention to variables outside; unhealthy egos and think that they know best; they can function apart from and unaffected by what goes on around them. Open system: therefore, we are dependent on a lot of people/orgs/bodies around us; ****6 components of the external environment (most studied)- pg534. ; how are these 6 components help? (see teal"s. The economy: recession; how does the knock/force, when the economy gets into a slump: they downsize; residual effect. Customers: need to know customers really well to know their needs to provide valuable services to them. Suppliers: need to know if there"s a shortage in supply chain or an over abundance: affects pricing strategy.
