MGMT 1 Lecture Notes - Lecture 41: Merage Family, Organizational Chart
Course CodeMGMT 1
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Paul Merage School of Business
Intro to Business Management
Course code: 38001
Final: Thursday of finals week
MANAGING THE INTERACTION AMONG FIRMS
● Networking – using communications technology and other organizations and allow them
to work together on common objectives.
● Transparency and Virtual Organizations
o Real time – the present moment or the actual time in which an event takes place.
o Internet has allowed companies to send real-time data to organizational partners
as they are developed or collected; result is transparency.
o Most organizations are no longer self-sufficient or self-contained – they are part
of a vast network of global businesses that work closely together.
o Networked organizations tend to be flexible.
o Virtual Corporation – a temporary networked organization made up of
replaceable firms that join and leave as needed.
● Benchmarking and Core Competencies
o Benchmarking – comparing an organization’s practices, processes and products
against the world’s best.
o Companies benchmarked other industries for different processes of the businesses
to find efficient ways.
o Companies within the same industry benchmarked to see what the other company
o If an organizational can’t do as well in certain processes, it will try to outsource
the function to an external organization.
o Core competencies – functions that a firm can do as well or better than any other
organization in the world.
▪ Done when a firm has completed its outsourcing process.
▪ Nike is great at designing and marketing athletic shoes..
● Adapting to Change
o Once you have formed an organization, you must be prepared to adapt the
structure to changes in the market.
o Introducing change is one of the hardest challenges facing any manager – i.e.
getting rid of old, inefficient facilities and cutting labor force to cut costs.
o Internet has created whole new opportunities – to win market share, companies
must coordinate the efforts of their traditional departments and internet staff to
create friendly, easy-to-manage-interactions.
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