GMS 200 Chapter 4: Chapter 4 - Organizational, Environment & Culture

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 200
• Professor: Shavin Malhotra

Document Summary

The world is too uncertain and the competition too intense. In order to survive, all organizations must dramatically and continuously improve: Competitive advantage allows an organization to deal with market and environmental forces better than its competitors. Organization may achieve competitive advantage in many ways. Ex: through its products, pricing, customer service, cost efficiency and quality. Regardless of how competitive advantage is achieved the key results are the same. Specific environment includes people and groups with whom an organization interacts. Specific environment is often described as stakeholders who are people, groups, institutions directly affected by an organization. Stakeholders common to the specific environment of most organizations include customers, suppliers, competitors, regulators and investors. Value creation is creating value for and satisfying needs of constituencies. Customers are always key stakeholders, customers put today"s organizations to a very stiff test. They want at least 1 of the 4 things: Organizations who can"t meet customer"s expectations suffer the market consequences.