Managing in a Changing Global Environment. Chapter 3. Environment. Forces surrounding an organization that have potential to affect its operation & its ability to access resources
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What is it?
How is it established?
Consumer interest groups
Cultural/ socialThe EnvironmentThink about how each of these affects ability to acquire resources
The amount of resources available to an organization
What makes an E. poor?
1. Located in poor location/region
2. Excessive competition
1. How vital is the resource(for survival)?
-Can manufacturers need aluminum
2. How much control do other organizations have over the resource?
-PC makers need memory chips
-Dependence on suppliers & distributors
---Organizations formulate strategies to manage interorganizational resource dependencies in an attempt to reduce uncertainty without giving up control
Symbiotic: the outputs of one organization are the inputs of another. Examples?
Competitive: organizations compete for inputs &/or outputs. Examples?
1. Reputation (most informal)
3. Strategic alliance
4. Merger & takeover (most formal)
1. Collusion & cartels
2. Third-party linkage mechanism
3. Strategic alliances
4. Merger & takeover
---These 2 strategies are used to manage both symbiotic & competitive relationships---
--TC are 42% of health care costs!
Transaction costs are lower when:
1. Environmental uncertainty is high or low?
2. Organizations are exchanging specific or nonspecific G/S?
3. The number of possible exchange partners is high or low?
When TC low, the organization can choose more formal or informal linkage?
Alcoa example 4th quarter results