Consumers are not completely rational when making purchase decisions. When you manipulate your
strategy, it can help influence consumer demand. Consumers typically compromise towards the middle
product, rationalize to themselves that they do not fit into either the high end or low end markets.
What is an organization?
A collection of people working together to achieve a common purpose/goal.
Are organizations an open or closed system?
Closed systems are self-contained, and can survive by itself without depending on any external
Open systems interact with the environment and need them to survive
o Organizations are OPEN SYSTEMS
Organizations depend on resources from the environment such as, finances, people, materials,
technology, information, etc.
o With these inputs, you get outputs for consumers to buy
Organizations must look at the environment and accordingly adapt
High Effective, Not Efficient Effective and Efficient
Goals Achieved Goals Achieved
Resources Wasted No wasted resources
Low Neither Effective Nor Efficient Efficient but not effective
No wasted resources
Goals Not Achieved
Poor Good What is a Manager?
Traditionally – a person who plans, directs people and resources
In new organizations – Person who directly supports and helps activate the work efforts and
performance accomplishments of others.
Typical Management Levels:
Typical Business Typical Non-profit
Board of Directors Board of Trustees
Chief Executive Officer Top Managers Executive Director
President President, Administrator
Vice President Vice President
Division Manager Middle Managers Division Manager
Regional Manager Regional Manager
Plant Manager Branch Manager
Department Head First-Line Managers Department Head
Team Leader Team Leader
Process: Planning, Organizing, Leading, Controlling
Setting: Hectic pace, interruptions, interactions, many tasks, long hours
The results are your PERFORMANCE
Follows the PRINCESS model for important manager activities
Is a lack of complete information regarding what exists and what developments may occur in
the external environment Two dimensions of environmental uncertainty
o Complexity (of the environment, depends on number of competitors, etc)
o Rate of Change (The environment changes really fast, ex: technology)
What Constitutes Exter