MGT 402 : Chapter 3 Review
Document Summary
Chapter 3: assessing opportunities and threats: doing an external analysis. Organization is an open system that responds to its environment. Organizations take inputs and process the inputs into outputs. Organizations have interrelated and interdependent parts that function as a whole. If you change any part, it will effect the entire system. The amount of change and complexity in an organization"s environment. The more complex and dynamic the environment, the more uncertain it is and the more information that decision makers need about the environment to make appropropriate decisions. Dependency is determined by the difficulty of obtaining and controlling resources. The specific environment includes customers, competitors, suppliers, and other industry-competitive variables. Current rivalry among existing firms: the more intense the rivalry among existing firms, the more that the industry"s profitability is likely to suffer. Potential entrants: depends on barriers to entry and reaction of current competitors.
