MGMT 3000 Lecture 4 Outline of Last Lecture I. Mistakes that Mangers Make II. First Year management transition III. Management practices that yield higher productivity IV. External environments a. Changing external environments Outline of current Lecture I. General and Specific Environments II. General Environment Components a. Economy b. Technological c. Socioculturald. Political/legal III. Specific Environmenta. Customer b. CompetitorCurrent Lecture General and Specific environments A general environment consists of the economy and the technological, sociocultural, and political/legal trends that indirectly affect all organizations A Specific Environment includes the customers, competitors, suppliers, industry regulations and advocacy groups that are unique to an industry and directly affect how a company does business General Environment Components Economy The state of country’s economy affects every organization doing business there In general, a growing economy leads to consumers having more money to spend and is favorable for growth Managers scan their economic environments for signs of significant change Some managers try to predict future economic activity by using business confidence indices , which show how confident managers are about future business growth These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.Preferred to economic statistics because they know that other managers make business decisions with their expectations of the economic future Technological component Technology: knowledge, tools and techniques used to transform inputs into outputs Ex. Music industry, this class Inputs include raw material and information while outputs includes products and services Changes in technology helps companies provide better products or produce their products more efficiently Sociocultural Component Demographic characteristics, behavior, attitudes, beliefs of the society Changes in these can: Affect how companies staff their business Affect the demand for a business’s products and services Political/legal component Regulations that govern and regulate the business behaviors Specific Environment Components Customers:Reactive customer monitoring: responding to problems, trends and events after they occur Proactive customer monitoring: Anticipating problems, trends, and events and responding to problems before they occur Big data Competitor Component: Competitors are companies in the same industry that sell similar products or services to customers In order to keep a close track of what the competitors are doing, Managers nee to perform Competitive analysis, which involves identifying competitors, and anticipating their moves and determining their strengths and weaknesses. Mistake managers make: Tending to focus only one 2 or 3 well-known competitors Underestimating potential competitor’s capabilities EX. Blockbuster, Microsoft, VoIP,
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