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Chapter 2
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advocacy groups
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groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions
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behavioural addition
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the process of having managers and employees perform new behaviours that are central to and symbolic of the new organizational culture that a company wants to create
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behavioural substitution
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the process of having managers and employees perform new behaviours central to the “new” organizational culture in place of behaviours that were central to the “old” organizational culture
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business confidence indices
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indices that show managers’ level of confidence about future business growth
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buyer dependence
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degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of selling its products to other buyers
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cognitive maps
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graphic depictions of how managers believe environmental factors relate to possible organizational actions
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company vision
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a company’s purpose or reason for existing
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competitive analysis
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a process for monitoring competitors that involves identifying competitors, anticipating their moves, and determining their strengths and weaknesses
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competitors
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companies in the same industry that sell similar products or services to customers
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complex environment
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an environment with many environmental factors
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dynamic environment
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environment in which the rate of change is fast
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environmental change
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the rate at which a company’s general and specific environments change
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environmental complexity
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the number of external factors in the environment that affect organizations
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environmental munificence
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degree to which an organization’s external environment has an abundance or scarcity of critical organizational resources
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environmental scanning
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searching the environment for important events or issues that might affect an organization
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external environments
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all events outside a company that have the potential to influence or affect it
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general environment
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the economic, technological, sociocultural, and political trends that indirectly affect all organizations
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industry regulation
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regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions
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internal environment
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the events and trends inside an organization that affect management, employees, and organizational culture
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media advocacy
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an advocacy group tactic of framing issues as public issues, exposing questionable, exploitative, or unethical practices, and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage
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opportunistic behaviour
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transaction in which one party in the relationship benefits at the expense of the other
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organizational ceremonies
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planned activities or events that emphasize culturally consistent assumptions, decisions, and actions
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organizational culture
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the values, beliefs, and attitudes shared by organizational members
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organizational heroes
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people celebrated for their qualities and achievements within an organization
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organizational rituals
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routine activities that emphasize the organization’s culture
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organizational stories
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stories told by organizational members to make sense of organizational events and changes and to emphasize culturally consistent assumptions, decisions, and actions
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organizational symbols
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something that represents another thing
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product boycott
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an advocacy group tactic of protesting a company’s actions by convincing consumers not to purchase its product or service
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public communications
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an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get an advocacy group’s message out
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punctuated equilibrium theory
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theory that holds that companies go through long, simple periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolution), and ending with a return to stability (new equilibrium)
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relationship behaviour
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mutually beneficial, long-term exchanges between buyers and suppliers
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simple environment
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an environment with few environmental factors
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specific environment
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the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and that directly affect how a company does business
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stable environment
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environment in which the rate of change is slow
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supplier dependence
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degree to which a company relies on a supplier because of the importance of the supplier’s product to the company and the difficulty of finding other sources of that product
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suppliers
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companies that provide material, human, financial, and informational resources to other companies
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technology
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knowledge, tools, and techniques used to transform input into output
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uncertainty
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extent to which managers can understand or predict which environmental changes and trends will affect their businesses
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visible artifacts
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visible signs of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room
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