Chapter 3 Part 1 Flashcards Preview

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Flashcards in Chapter 3 Part 1 Deck (10)
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1

All events outside a company that can influence or affect it
Basic characteristics
- Environmental change
- Environmental complexity
- Resource scarcity

External environments

2

Rate at which a company’s general and specific environments change
- Stable environment
- Dynamic environment

Environmental change

3

Rate of change is slow

Stable environment

4

Rate of change is fast

Dynamic environment

5

Companies go through long periods of stability during which incremental changes occur
- This is followed by short periods of dynamic, fundamental change and then a new equilibrium

Punctuated Equilibrium Theory

6

The number and the intensity of external factors in the environment that affect organizations
- Simple environment
- Complex environment

Environmental Complexity

7

Has few factors
Example - Dairy industry

Simple environment

8

Has many factors
Example - Less-than-truckload (LTL) distribution companies

Complex environment

9

Abundance or shortage of critical organizational resources in an organization's external environment

Resource scarcity

10

Extent to which managers can predict which external changes and trends will affect their businesses

Uncertainty