General Business BUS206 Lecture Notes - Lecture 2: Brand Loyalty, World Trade Organization, Individualism
2 Jun 2015
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Document Summary
Force can change over time and are made up of opportunities and threats. Opportunities are opening for managers to enhance revenues or open markets. Threats are issues that can harm and organization. Examples include economic recessions, political unrest or oil shortages. Task environment: includes groups who have an immediate and direct impact on the organization. forces result from the actions of suppliers, distributors, customers, and competitors. Managers need reliable suppliers provide raw materials, components, and labour. Working with suppliers can be hard due to shortages, unions, and lack of substitutes. Rivalry between competitors is a serious force facing managers. High levels of rivalry often means lower prices. Barriers to entry keep new competitors out and result from: Critical factor: increasing economic integration of countries. > free-trade agreements (nafta, eu) designed to reduce barriers to trade. > growth of representative democracies and reliable and instantaneous communications. Four principal forms of capital: human capital, financial, resource, political.
