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Contemporary Management, 1st Canadian Edition
Gareth Jones, Texas A&M University
Jennifer George, Texas A&M University
Charles W. L. Hill, University of Washington
Nancy Langton, University of British Columbia

The Organizational Environment

Below are the key terms featured in this chapter. Clicking on a term will reveal its definition. The textbook's full glossary is also available for online searching.
barriers to entry  Factors that make it difficult and costly for an organization to enter a particular task environment or industry.
boundary spanning  Interacting with individuals and groups outside the organization to obtain valuable information from the task and general environments.
brand loyalty  Customers' preference for the products of organizations currently existing in the task environment.
competitors  Organizations that produce goods and services that are similar to a particular organization's goods and services.
customers  Individuals and groups that buy the goods and services that an organization produces.
demographic forces  The outcomes of changes in, or changing attitudes toward, the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, and social class.
distributors  Organizations that help other organizations sell their goods or services to customers.
economic forces  Interest rates, inflation, unemployment, economic growth, and other factors that affect the general health and well-being of a nation or the regional economy of an organization.
economies of scale  Cost advantages associated with large operations.
environmental change  The degree to which forces in the task and general environments change and evolve over time.
external environment  The forces operating outside an organization that affect how the organization functions.
gatekeeping  Deciding what information to allow into the organization and what information to keep out.
general environment  The wide-ranging economic, technological, sociocultural, demographic, political and legal, and global forces that affect an organization and its task environment.
global forces  Outcomes of changes in international relationships, changes in nations' economic, political, and legal systems, and changes in technology, such as falling trade barriers, the growth of representative democracies, and reliable and instantaneous communication.
industry life cycle  The changes that take place in an industry as it goes through the stages of birth, growth, shakeout, maturity, and decline.
internal environment  The forces operating within an organization and stemming from the organization's structure and culture.
national culture  The set of values that a society considers important and the norms of behaviour that are approved or sanctioned in that society.
organizational environment  The set of forces and conditions that operate beyond an organization's boundaries but affect a manager's ability to acquire and utilize resources.
political and legal forces  Outcomes of changes in laws and regulations, such as the deregulation of industries, the privatization of organizations, and increased emphasis on environmental protection.
potential competitors  Organizations that presently are not in a task environment but could enter if they so chose.
social structure  The arrangement of relationships between individuals and groups in a society.
sociocultural forces  Pressures emanating from the social structure of a country or society or from the national culture.
suppliers  Individuals and organizations that provide an orga\-nization with the input resources that it needs to produce goods and services.
task environment  The set of forces and conditions that originate with suppliers, distributors, customers, and competitors and affect |an organization's ability to obtain inputs and dispose of its outputs, because they influence managers on a daily basis.
technological forces  Outcomes of changes in the technology that managers use to design, produce, or distribute goods and services.
technology  The combination of skills and equipment that managers use in the design, production, and distribution of goods and services.