Ch.6: Managing in the Global Environment

global organization

an organization that operates and competes in more than one country.

global environment

the set of global forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources.

task environment

the set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs because that influence managers daily.

general environment

the wide-ranging global, economic, technological, sociocultural, demographic, political and legal forces that affect an organization and its task environment.

suppliers

individuals and organizations that provide an organization with the input resources its needs to produce goods and services.

global outsourcing

the purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design.

distributors

organizations that help other organizations sell their goods or services to customers.

customers

individuals and groups that buy the goods and services an organization produces.

competitors

organizations that produce goods and services that are similar to a particular organization's goods and services.

potential competitors

organizations that presently are not in a task environment but could enter if they so choose.

barriers to entry

factors that make it difficult and costly for an organization to enter a particular task environment or industry.

economies of scale

cost advantages associated with large operations.

brand loyalty

customers' preference for the products of organizations currently existing in the task environment.

economic forces

interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.

technology

the combination of skills and equipment that managers use in designing, producing, and distributing goods and services.

technological forces

outcomes of changes in the technology managers use to design, produce, and distribute goods and services.

sociocultural forces

pressures emanating from the social structure of a country or society or from the national culture.

social structure

the traditional system of relationships established between people and groups in a society.

national culture

the set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society.

demographic forces

outcomes of changes in, or changing attitudes toward the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.

political and legal forces

outcomes of changes in laws and regulations, such as deregulation of industries, privatization of organizations, and increased emphasis on environmental protection.

globalization

the set of specific and general forces that work together to integrate and connect economic, political, and social systems across countries, cultures, or geographical regions so that nations become increasingly interdependent and similar.

tariff

a tax that a government imposes on imported or occasionally exported goods.

free-trade doctrine

the idea that if each country specializes in the production of the goods and services that it can produce most efficiently, this will make the best use of global resources.

values

ideas about what a society believes to be good, right, desirable, or beautiful.

norms

unwritten, informal codes of conduct that prescribe how people should act in particular situations and are considered important by most members of a group or organizations.

mores

norms that are considered to be central to the functioning of society and to social life.

folkways

the routine social conventions of everyday life.

individualism

a worldview that values individual freedom and self-expression and adherence to the principle that people should be judged by their individual achievements rather than by their social background.

collectivism.

a worldview that values subordination of the individual to the goals of the group and adherence to the principle that people should be judged by their contribution to the group.

power distance

the degree to which societies accept the idea that inequalities in the power and well-being of their citizens are due to differences in individual's physical and intellectual capabilities and heritage.

achievement orientation

a worldview that values assertiveness, performance, success, and competition.

nurturing orientation

a worldview that values the quality of life, warm personal friendships, and services and care for the weak.

uncertainly avoidance

the degree to which societies are willing to tolerate uncertainty and risk.

long-term orientation

a worldview that values thrift and persistence in achieving goals.

short-term orientation

a worldview that values personal stability or happiness and living for the present.