OD Final - Chapter 4
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Questions and Answers

What aspect of consumer behavior is largely influenced by the green movement?

  • Sustainability and protection of the environment (correct)
  • Increased brand loyalty
  • Focus on luxury products
  • Higher demand for processed foods

What major economic condition affected Briggs Inc. in 2008?

  • Technological advancement
  • High inflation in goods
  • Increased consumer spending
  • Recession and unemployment rate (correct)

Which strategy did H&M use to align with environmental consumer trends?

  • Eliminated online shopping options
  • Utilized recycled materials for packaging (correct)
  • Increased plastic use for durability
  • Introduced more synthetic fabrics

How do consumer movements impact advertising in Egypt?

<p>Competitor names are blurred in advertisements (B)</p> Signup and view all the answers

What has become essential for businesses in the modern market according to technology trends?

<p>Integration of advanced technology (C)</p> Signup and view all the answers

What type of product did Hadia Ghaleb utilize AI for in marketing?

<p>Sunglasses (D)</p> Signup and view all the answers

Which factor is least likely to affect consumer purchasing decisions during inflation?

<p>Brand recognition (C)</p> Signup and view all the answers

What was a unique food offering from McDonald's when they expanded to Egypt?

<p>McFalafel and McArabia (C)</p> Signup and view all the answers

What is one reason organizations increase the number of positions and departments when environmental uncertainty rises?

<p>To manage specific external environmental elements. (A)</p> Signup and view all the answers

What is the primary function of bu?ering roles in an organization?

<p>To absorb uncertainty from the external environment. (D)</p> Signup and view all the answers

Which of the following best describes the recent approach organizations are taking regarding buffering roles?

<p>Exposing the technical core to environmental uncertainties. (B)</p> Signup and view all the answers

In terms of relationships, what do organizations believe is more important than internal efficiency?

<p>Strong connections with external parties. (A)</p> Signup and view all the answers

What specific change did PepsiCo implement in response to customers’ increasing care for design?

<p>Created a new position for 'chief design officer.' (C)</p> Signup and view all the answers

How do organizations that drop buffering roles believe they can adapt better to their environment?

<p>By fostering closer relationships with customers and suppliers. (C)</p> Signup and view all the answers

Which department typically acts as a buffer to manage uncertainties in hiring and training employees?

<p>Human Resources (A)</p> Signup and view all the answers

What is a likely consequence of increasing environmental uncertainty within an organization?

<p>Increased internal complexity and resource allocation. (C)</p> Signup and view all the answers

What is the main purpose of boundary-spanning roles in an organization?

<p>Facilitate the exchange of information between the organization and its environment (D)</p> Signup and view all the answers

Which approach focuses on analyzing large amounts of data to identify significant patterns that could affect decision-making?

<p>Business Intelligence (C)</p> Signup and view all the answers

What is a disadvantage of high differentiation within an organization?

<p>Increased difficulty in coordination and collaboration (D)</p> Signup and view all the answers

How does high environmental uncertainty affect differentiation among departments within an organization?

<p>It leads to higher levels of differentiation due to specialization (A)</p> Signup and view all the answers

What role do intelligence teams play in organizations?

<p>They collect and analyze public information about rivals to aid strategic decision-making (B)</p> Signup and view all the answers

What is the primary focus of social media analytics in organizations?

<p>To gather data from social media platforms for issue-related decision-making (D)</p> Signup and view all the answers

Why is it essential for an organization to develop a complex structure in response to environmental factors?

<p>To better cope with a complex environment and enhance effectiveness (D)</p> Signup and view all the answers

What is integration in the context of organizational structure?

<p>The quality of collaboration among departments (C)</p> Signup and view all the answers

What characterizes organizations operating in a high uncertainty environment?

<p>Many departments and organic control processes (D)</p> Signup and view all the answers

In resource dependence theory, what is a key strategy organizations use to cope with resource scarcity?

<p>Sharing resources with competitors (C)</p> Signup and view all the answers

Why is it challenging for organizations to operate in a high uncertainty environment?

<p>They require a complex structure for coordination and integration. (D)</p> Signup and view all the answers

What is a common control process in organizations facing moderate to high uncertainty?

<p>Organic teamwork and participative decentralization (A)</p> Signup and view all the answers

Which of the following is NOT mentioned as a key aspect of managing high environmental uncertainty?

<p>Minimal planning and forecasting (C)</p> Signup and view all the answers

What dilemma do managers face when considering resource sharing?

<p>The desire to minimize resource vulnerability versus maintaining independence (B)</p> Signup and view all the answers

Which planning orientation is typically associated with organizations in a low uncertainty environment?

<p>Low-speed and operations-oriented planning (D)</p> Signup and view all the answers

Which characteristic does NOT typically apply to high uncertainty environments?

<p>Formal centralized control processes (B)</p> Signup and view all the answers

What is a potential drawback of organizations developing formal linkages with others?

<p>Limitations on decision-making autonomy (D)</p> Signup and view all the answers

What strategy can organizations use to influence financial resources?

<p>Establish favorable relationships with other organizations (D)</p> Signup and view all the answers

Which of the following describes an acquisition?

<p>When one organization buys another and assumes control (C)</p> Signup and view all the answers

What is the purpose of forming joint ventures and partnerships?

<p>To share risks and leverage complementary strengths (C)</p> Signup and view all the answers

What is a key feature of a joint venture?

<p>Formal independence with partial control by parent companies (B)</p> Signup and view all the answers

Which of the following agreements provides long-term security by linking customers and suppliers?

<p>Supplier agreements (B)</p> Signup and view all the answers

What is coopting in organizational terms?

<p>Integrating leaders from important sectors into the organization (C)</p> Signup and view all the answers

What could an organization lacking in resources do to secure financial stability?

<p>Sacrifice some autonomy in exchange for resources (C)</p> Signup and view all the answers

What is one way organizations can enhance their public relations efforts?

<p>By utilizing modern tools like blogging and social networking (B)</p> Signup and view all the answers

Which of the following is NOT a technique for changing a business domain?

<p>Corporate mergers (A)</p> Signup and view all the answers

Why do organizations engage in political techniques and strategies?

<p>To influence legislation and regulations in their favor (A)</p> Signup and view all the answers

What role do CEOs often play in influencing government policies?

<p>They engage in direct lobbying due to their access and influence (A)</p> Signup and view all the answers

What is one benefit of organizations joining trade associations?

<p>To pool resources for lobbying legislators (C)</p> Signup and view all the answers

What could be an example of an organizational acquisition?

<p>Google acquiring YouTube to diversify its business (D)</p> Signup and view all the answers

What is a strategy used to hinder new competitors entering a market?

<p>Erecting regulatory barriers (D)</p> Signup and view all the answers

What is a common goal of organizations when forming trade associations?

<p>To advocate for collective interests of the industry (A)</p> Signup and view all the answers

Flashcards

Sustainability

The impact of environmental concerns on business practices.

Natural resource management

The process of managing natural resources like water, land, and forests for long-term use.

Green movement

The shift in societal values towards environmental protection and resource conservation.

Economic conditions

The impact of economic conditions, such as inflation, recession, and unemployment, on businesses.

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Technology impact on business

Using technology to improve production processes and create new products and services.

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E-commerce

The use of online platforms and digital tools for conducting business transactions.

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Globalization impact on business

The way companies adapt their products and services to different cultures and demographics.

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Socio-cultural factors in business

The influence of individuals and groups on consumer choices and business practices.

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Environmental Uncertainty

The extent to which the external environment is unpredictable and complex. It can involve factors like rapidly changing customer demands, competitor actions, and economic fluctuations.

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Internal Complexity

The internal complexity of an organization increases as the number of positions and departments grow to address various aspects of the external environment.

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Buffering Roles

Departments that act as a buffer between the organization and the environment, absorbing uncertainty and helping the core operations run smoothly.

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Buffering Roles (Tradional)

A traditional approach where departments like HR and procurement shield the technical core from external uncertainties by managing resources and processes.

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Buffering Roles (Modern)

A more modern approach where organizations expose the core to external uncertainties, believing it promotes greater adaptability and responsiveness.

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Cross-Functional Teams

Teams composed of members from different departments, working together to handle specific tasks and challenges. They can enhance communication and collaboration.

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Adapting to Environmental Uncertainty

The process of organizing an organization's structure and processes to best align with the external environment's dynamics and complexities.

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Organizational Adaptability

The ability of an organization to adjust its internal systems and processes to effectively respond to external changes and uncertainties.

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Boundary-Spanning Roles

These roles act as bridges between an organization and its external environment. They exchange information, detect changes, and influence perceptions.

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Business Intelligence

This involves gathering and analyzing large amounts of internal and external data to identify patterns and relationships. Universities tracking applicant interest is an example.

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Social Media Analytics

Collecting and analyzing data from social media platforms to help make decisions and keep up with trends.

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Competitive Intelligence

Systematically gathering public information about competitors, including their new products, manufacturing costs, and strategies.

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Intelligence Teams

A team of managers and employees from different departments, led by a CI professional. They work together to gain a deep understanding of specific business issues and present insights to top leaders.

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Differentiation

The differences in cognitive and emotional orientations, as well as formal structures, among departments. It increases with greater environmental uncertainty.

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Integration

The quality of collaboration among departments. It's crucial for organizations to effectively handle high differentiation.

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Complex Structure for Complex Environments

A complex organizational structure is necessary for a complex environment. This allows for effective handling of multiple external factors.

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External Environment Influence

The practice of influencing the external environment, including public opinion, government regulations, and industry practices, to achieve organizational benefits.

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Acquisition

The strategy of gaining access to new markets, resources, or products by acquiring another company.

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Divestment

The process of a company selling off a part or all of its business to another company.

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Political Influence

The practice of using political strategies and tactics to influence government policies and regulations.

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Trade Associations

Organizations formed by businesses in the same industry to advocate for their collective interests.

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Lobbying

Direct efforts to shape government policies and regulations, often targeting local, state, and federal levels.

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Key Stakeholders

Individuals or groups who have influence over the decision-making process within an organization.

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Sustainability Influence

The impact of environmental concerns, resource conservation, and social responsibility on business practices.

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Partial Ownership

An organization invests in another to gain access to resources it lacks.

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Merger

Two or more companies join forces to create a single entity, combining resources and sharing risks.

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Joint Ventures & Partnerships

Partnerships formed when companies benefit from each other's unique strengths, such as location, skills, or products.

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Contracts

Agreements that legally bind companies to certain terms, reducing uncertainty and providing long-term security.

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License Agreements

Purchasing the right to use an asset, like a new technology, for a specified period.

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Supplier Agreements

A company sells its output to another, creating a consistent supply chain.

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Joint Ventures

A new company created by parent companies, sharing control and risks, often used for international expansion.

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Resource Dependance

Organizations depend on the environment for scarce resources, but seek to minimize dependence and vulnerability by acquiring control over them.

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Strategies for Resource Scarcity

Strategies to cope with a shortage of resources by organizations. This includes reducing costs, acquiring control of resources, and sharing resources.

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Resource Sharing Dilemma

The challenge faced by managers when deciding to share resources to reduce vulnerability, while desiring to maintain independence and autonomy.

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Cost Cutting

Reducing costs by laying off employees, cutting investments, and other measures to address resource scarcity.

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Acquiring Control of Resources

A method of coping with resource scarcity by organizations gaining control over essential resources.

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Sharing Resources with Other Organizations

Collaborating with other organizations to share scarce resources, reduce costs, and enhance competitiveness on a global scale.

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Maintaining Independence with Resource Dependence

The complex situation where organizations try to reduce dependence on external resources while also ensuring necessary autonomy and independence.

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Long-Term Sustainability Strategies

Strategies to reduce vulnerability and achieve long-term sustainability. This involves diverse resources, partnerships, and adapting to changing conditions.

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Study Notes

OD Final - Chapter 4

  • Organizations are open social systems, interacting with many elements in their external environment. This environment can be complex.
  • Environmental changes create both opportunities and threats.
  • Understanding an organization's domain (the external sectors it interacts with) helps it achieve its goals.

Define Organizational Environment

  • Everything existing outside an organization's boundary that can impact it.

Define Domain

  • The chosen environmental field of action.

Define Sector

  • A subdivision of an organization’s environment containing similar elements.

Task Environment (5 Sectors)

  • Sectors organizations interact with directly, impacting their ability to achieve goals.

Industry

  • Competitors.
  • Industry size and competitiveness.
  • Related industries.

Raw Materials

  • Suppliers.
  • Manufacturers.
  • Real estate services.

Market

  • Customers/Clients.
  • Potential users of products & services

General Environment (6 Sectors)

  • Sectors that indirectly impact a firm but eventually affect it.

Government

  • City, state, federal laws & regulations.
  • Taxes.
  • Court system.
  • Political processes.

Natural

  • All elements naturally occurring on Earth.
  • Green movement.
  • Sustainability.
  • Natural resource management.

Socio-cultural

  • Pressure from various advocacy groups.
  • Demographics (age, values, beliefs).
  • Education, religion, work ethic
  • Consumer movements.

Economic

  • Unemployment rate.
  • Inflation rate.
  • Rate of investment.
  • Economic growth.

Technology

  • Production techniques.
  • Science.
  • Computer technology.
  • Information technology.
  • E-commerce.

Financial Resources

  • Stock markets.
  • Banks.
  • Savings and loans.
  • Private investors.

International Environment

  • Global and international events impact organizations.
  • Uncertainty exists when entering new markets.
  • International events, like trade wars, increase import prices.

The Changing Environment

  • Three key dimensions describe environmental changes:
    • Dynamism (stable or unstable).
  • Complexity (simple or complex).
  • Abundance of resources (abundance or scarcity).

Adapting to Environmental Uncertainty

  • High environmental uncertainty requires horizontal communication & collaboration, adjusting internal structure & processes.
  • Different levels of uncertainty require adjusted management strategies, like differentiated vs integrated roles.
  • Increasing uncertainty increases the need for positions & departments that specialize in different aspects of the environment.
  • Roles that buffer internal functions from environmental uncertainty and those that bridge the gap between external activities and internal ones.
  • Boundary spanning: roles link the organization with its environment, exchanging information and influencing others.
  • Approaches to boundary spanning: business intelligence, social media analytics, and competitive intelligence.

Environmental Dynamism

  • Describes whether the environment is stable (unchanging) or unstable (rapid change).
  • Environmental factors may involve shifts, innovations, technologies, etc
  • Instability can be driven by shifts in consumer preferences or unexpected events.

Environmental Complexity

  • Refers to the number & variety of external factors affecting an organization.
  • Simple environments have a small number of similar factors; complex environments have many diverse external factors.

Environmental Uncertainty

  • Determined by the combination of dynamism and complexity.
  • High uncertainty environments are those where factors change rapidly and there are many influencing factors.
  • Managing high uncertainty demands organizations to be adaptive, flexible and use strategies to maintain stability.

Abundance of Financial Resources

  • Organizations need financial resources from their environment to reduce vulnerability; they strive for a balance between dependence on others and independence.
  • Strategies to deal with resource scarcity include cost-cutting, acquiring control over resources, or sharing resources with other organizations.
  • Organizations try to influence financial resources to meet their needs.

Establishing Formal Relationships (Strategies to Influence Key Sectors)

  • Acquiring ownership stakes.
  • Forming joint ventures & partnerships.
  • Locking in key players
  • Recruiting Executives
  • Using advertising & PR
  • Influencing key sectors
  • Changing domains.
  • Getting political
  • Uniting with other organizations avoiding illegal activities.

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OD Final Chapter 4 PDF

Description

Explore the concepts of organizational environment, domain, and sector as discussed in Chapter 4 of Organizational Development. This quiz examines how external interactions affect organizations and the significance of understanding these elements for achieving goals.

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