Forces Shaping Organizations Quiz

Study Notes

Demographic Forces

Involve the statistical characteristics of a population, including age, gender, income, education, and family structure.
Directly affect a business's customer base.

Natural Environment Forces

Involve the physical elements of the environment, such as climate, geography, natural disasters, and resource availability.

Regulatory Compliance

Involves compliance with data privacy laws, such as GDPR and CCPA.
Essential for mitigating legal risks and maintaining consumer trust.

Political Forces

Include external constraints linked to governmental activities and political conditions that affect a business's area of operation.
Can be a military government or a government formed by communication natives or an occupying power.

Technological Infrastructure

Involves investments in technological infrastructure, including cloud computing, edge computing, and 5G networks.
Essential for supporting the growing demands of digital businesses.

Globalization and Connectivity

Facilitates greater markets and collaboration across geographical boundaries.
Enables businesses to reach new markets and collaborate across geographical boundaries.

Legal Forces

Refers to the use of physical or verbal pressure against a person or thing.
Can be reasonable force or excessive force.

Emerging Technologies

Refers to the rapid pace of innovation that gives rise to emerging technologies with the potential to disrupt industries and create new opportunities.

Technological Forces

Refers to the influences that developments in technology have on consumers, business, and society in general.
J.K.Galbraith defines technology as a "systematic application of scientific or other organized knowledge to practical tasks".

Competitive Forces

Include direct forces that determine how low the floor can go for price competition.
Include indirect forces that place a ceiling on a market's prices and profits.

Digital Disruption

Driven by advancements in technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT).
Reshaping traditional business models across industries.

Cybersecurity Threats

Increase with the reliance on digital technologies.
Include data breaches, cyber threats, and customer negotiating power.

Information Systems

Include competitive analysis, Porter's Five Forces Model, and the External Factor Evaluation (EFE) matrix method.

Porter's Five Forces Model

Created by Harvard Business School professor, Michael Porter, and published in 1979.
Includes demographic, environmental, economic, PGBL, and competitive profile matrix factors.

External Factor Evaluation (EFE) Matrix Method

A strategic management tool used for assessment of current business conditions.
Uses the same five steps as the IFE matrix.

Competitive Profile Matrix

A tool used to directly compare a company's strengths and weaknesses to industry competitors.
Identifies a firm's major competitors and its particular strengths and weaknesses in relation to a sample firm's strategic position.

Components of CPM

Critical Success Factors: the key areas that must be performed at the highest possible level of excellence.
Weight: assigned to each critical success factor, indicating how important the factor is in succeeding in the industry.
Ratings: indicate how well companies are doing in each area.
Weighted Score: the result of weight multiplied by the rating.

Description

Test your knowledge on how demographic forces, natural environment forces, and regulatory compliance affect organizations. Learn about the impact of population characteristics, environmental elements, and data privacy laws on businesses.