Textbook Notes (368,430)
Canada (161,877)
MGHB02H3 (269)
Anna Nagy (23)
Chapter 15

Chapter 15.docx

5 Pages
32 Views
Unlock Document

Department
Management (MGH)
Course
MGHB02H3
Professor
Anna Nagy
Semester
Summer

Description
MGTB27 Chapter 15: Environment, Strategy, and Technology External environment: events and conditions that influence activities of organization  Economic crisis and global recession  Diseases (SARS) Open System  Take inputs from external environment, transform, send back into environment as outputs  Inputs: capital, energy, materials, information, technology, people  Outputs: products and services  Transformation process: physical, intellectual, emotional  The need to cope with the demands of environment on both input and output Components of the External Environment  The General Economy  Technology  Customers o Interest groups: others (except  Suppliers direct competitors) have some  Competitors vested interest in how an  Social/ political factors organization is managed Environmental Uncertainty  External environment is vague, difficult to diagnose, and unpredictable  Uncertainty depends on environment’s complexity and rate of change o Simple environment o Complex environment o Static environment o Dynamic environment Complexity Simple Complex Low Perceived Uncertainty Moderately Low Perceived Uncertainty 1. Small number of factors and 1. Larger number of factors and components in the environment t components in the environment 2. Factors and components are 2. Factors and components are not Static somewhat similar to one another similar to one another 3. Factors and components remain 3. Factors and components remain Rate of basically the same and are not basically the same Change changing Moderately High Perceived Uncertainty High Perceived Uncertainty 1. Small number of factors and 1. Larger number of factors and components in the environment components in the environment Dynamic 2. Factors and components are 2. Factors and components are not somewhat similar to one another similar to one another 3. Factors and components of the 3. Factors and components of environment are in continual process environment are in a continual of change process of change MGTB27  Uncertainty leads to lower confidence, more information must be processed to make adequate decisions  Environmental scanning, boundary spanning, planning and formal management information systems will be more prominent Strategy Preceived Implementation Objective Organizational Structure Organizational Environment Strategy - Vertical Integration Organizational Environment - Perceived - Uncentainty Uncertainty Formulation - Merger/ Acquisition Effectiveness - Resources - Perceived - Director Interlocks Resources - Establish Legitimacy -Technology Resource Dependence  Dependency of organizations on environmental inputs (capital, raw materials, human resources)  Many small business exist with highly resource dependent  Competitors, regulatory agencies, and various interest groups can have a considerable stake in how an organization obtains and transforms its resources  Develop strategies for managing both resources dependence and environmental uncertainty Strategy Responses to Uncertainty and Resources Dependence  Strategy: top execs seek to cope with the constraints and opportunities that an organization’s environment poses  Determining the mission, goal, objectives Organizational Structure as a Strategy Response  3 depts: sales (market environment), production (technical environment), research (scientific environment)  Range of uncertainty  Mature organic and flexible to adapt dynamic environments  New ventures  flexible and attuned to their environment but lack the benefits of structures  More centralized, simple structures  rational and less political strategy Other Forms of Strategic Response  Vertical Integration o Taking control of supply and distribution  Mergers/ Acquisition o Merger: joining of two organization o Acquisition: acquiring organization by another  Strategic Alliances o Actively cooperative relationships between legally separate organizations o Alliances reduce risk and uncertainty for all parties and recognize resources interdependence
More Less

Related notes for MGHB02H3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit