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Management , Seventh Edition
Ricky W. Griffin, Texas A&M University
Chapter Glossary

Chapter 3 The Environment of Organizations and Managers

external environment Everything outside an organization's boundaries that might affect it

internal environment The conditions and forces within an organization

general environment The set of broad dimensions and forces in an organization's surroundings that create its overall context

task environment Specific organizations or groups that affect the organization

economic dimension The overall health and vitality of the economic system in which the organization operates

technological dimension The methods available for converting resources into products or services

sociocultural dimension The customs, mores, values, and demographic characteristics of the society in which the organization functions

political-legal dimension The government regulation of business and the general relationship between business and government

international dimension The extent to which an organization is involved in or affected by business in other countries

competitor An organization that competes with other organizations for resources

customer Whomever pays money to acquire an organization's products or services

supplier An organization that provides resources for other organizations

regulator A unit that has the potential to control, legislate, or otherwise influence the organization's policies and practices

regulatory agency An agency created by the government to regulate business activities

interest group A group formed by its own individual members to attempt to influence business

strategic partner or ally An organization working together with one or more other organizations in a joint venture or similar arrangement

owner Whomever can claim property rights on an organization

board of directors Governing body elected by a corporation's stockholders charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests

uncertainty A major force caused by change and complexity that affects many organizational activities

five competitive forces The threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers



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