Chapter 3 Part 2 Flashcards Preview

Management 310 TEST 1 > Chapter 3 Part 2 > Flashcards

Flashcards in Chapter 3 Part 2 Deck (10)
Loading flashcards...
1

What are the four components of the general environment?

Economy
Technology
Sociocultural Component
Political/Legal Component

2

Growing _________ provides a favorable environment for business growth
- Consumers have more money to spend
Influences basic business decisions
- Managers scan the economic environment by business confidence indices

Economy

3

Show managers’ level of confidence about future business growth

Business confidence indices

4

Knowledge, tools, and techniques used to transform inputs into outputs
___________ changes help companies:
- Provide better products
- Produce products more efficiently
Must be used effectively to improve products or decrease costs

Technology

5

Demographic characteristics, general behavior, attitudes, and beliefs of people in society
- Changes in demographic characteristics affect how companies staff their businesses
- __________ changes in behavior, attitudes, and beliefs affect the demand for a business’s products and services

Sociocultural Component

6

Includes the legislation regulations, and court decisions that govern and regulate business behavior

Managers must be aware of the laws, regulations, and potential lawsuits that could affect their businesses

Political/Legal Component

7

What are the five components of the specific environment?

Customer Component
Competitors
Supplier Component
Industry regulation
Advocacy groups

8

Customers purchase products and services
Companies cannot exist without customer support
Basic strategies for monitoring customers
- Reactive
- Proactive

Customer Component

9

Companies in the same industry that sell similar products or services to customers

Competitors

10

Process for monitoring the competition

Involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

Competitive analysis