COMMERCE 1BA3 Lecture Notes - Lecture 13: Starbucks
9 Jun 2016
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Capital, raw materials, human resources, customers, etc. Components of external environment: general economy, customers, suppliers, competitors, social/political factors, technology. Environmental uncertainty: external environment is vague, difficult to diagnose, and unpredictable, simple environment, some similar factors, complex environment, many dissimilar factors, static environment, stable or cyclical change, dynamic environment, constant unpredictable change. Organization strategy: process by which top executives seek to cope with the constraints, and opportunities that an organization"s environment poses, necessary for coping with environmental uncertainty, used to determine the mission, goals, and objectives of an organization, ex. Types of strategic responses: vertical integration, strategy of formally taking control of resource of organizational supply and distribution. Starbucks importing its own coffee: m&a, merger. Purchase of one organization by another: used for economies of scale and reducing resource dependence to a certain degree, strategic alliances. Actively cooperative relationships between legally separate organizations. Can be between competitors, suppliers, customers, and unions. M&a might fail due to culture clash.
