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50 Cards in this Set
- Front
- Back
External Environment
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everything outside an organization's boundaries that might affect it
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organizational boundary
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that which seperates the organization from its environment
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economic Environment
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conditions of the economic system in which an organization operates
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aggregate output
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total quantity of goods and services produced by an economic system during a given period
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standard of living
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Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system
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business cycle
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pattern of short term ups and downs ( expansions and contractions) in an economy
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Gross Domestic Product (GDP)
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Total value of all goods and services produced within a given period by a national economy through domestic factors of production
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Gross National Product (GNP)
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Total value of all goods and services produced by a national economy within a given period regardless of where the factors of production are located
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GDP per Capita
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Gross domestic product per person
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real GDP
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GDP calulated to account for changes in currency values and price changes
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nominal GDP
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GDP measured in current dollars or with all components valued at current prices
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purchasing power parity
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principle that exchange rates are set so that the prices of similar products in different countries are about the same.
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productivity
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measure of economic growth that compares how much a system produces with the resources needed to produce it
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balance of trade
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the total of a country's exports minus its imports
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National debt
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the total amount of money that a country owes its creditors
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Budget deficits
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the result of the government spending more in one year than it takes in during that year
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stability
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condition in an economic system in which the amount of money available and the quantity of goods and services produced are growing at about the same rate.
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inflation
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occurrence of widespread price increases throughout an economic system
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Consumer price index (CPI)
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measure of the prices of typical products purchased by consumers living in urban areas
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deflation
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a period of generally falling prices
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unemployment
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the level of joblessness among people actively seeking work in an economic system.
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Fiscal Policies
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policies whereby governments collect and spend revenue
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Monetary policies
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policies whereby the government controls the size of the nation's money supply.
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Technology
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all the ways firms create value for their constituents
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research and development (R&D)
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those activities that are necessary to provide new products, services , and processes
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Basic ( pure) RD
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improving knowledge in an area without a primary focus on whether any discoveries that might occur are immediately marketable
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applied RD
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focusing primarily on how a technological innovation can be put to use in the making of a product or service that can be sold in the marketplace
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RD intensity
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RD spending as a percentage of a company's sales revenue
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Technology transfer
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the process of getting a new technology out of the lab and into the marketplace
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Socio- Cultural environment
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conditions including the customs , values , attitudes, and demographic characteristics of the society in which an organization functions
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What are Michael Porter's five forces model?
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-Rivalry among existing competitors
-threat of potential entrants -suppliers -buyers -substitutes |
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core competencies
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skills and resources with which an organization competes best and creates the most value for owners
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outsourcing
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strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services
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viral marketing
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strategy of using the internet and word of mouth marketing to spread product information
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process
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any activity that adds value to some input transforming it into an output for a customer
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business process managment
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approach by which firms move away from department oriented organization and toward process oriented team structures that cut across old deparmental boundries
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acquisition
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the purchase of a company by another larger firm, which absorbs the smaller company into its operations
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merger
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the union of two companies to form a single new business
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horizontal merger
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a merger of two firms that have previously been direct competitors in the same industry
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vertical merger
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a merger of two firms that have previously had a buyer -seller relationship.
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conglomerate merger
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a merger of two firms in completely unrelated businesses
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friendly takeover
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an acquisition in which the management of the aquired company welcomes the firm's buyout by another company.
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hostile takeover
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an acquisition in which the managment of the acquired company fights the firm's buyout by another company
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poison pill
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a defence that mangment adopts to make a firm less attractive to an actual or potential hostile suiter in a takeover attempt
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divestiture
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occures when a company sells part of its existing operations to another company.
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spinoff
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strategy of setting up one or more corporate units as new independent corporations.
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employee stock ownership plans
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an arrangment whereby a corporation buys its own stock with loaned funds and holds it in trust for its employees. employees " earn" the stock based on some condition such as seniority. employees control the stock's voting rights immediately, even though they may not take physical possesion of the stock until specified conditiond are met
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strategic alliance
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an enterprise in which two or more persons or companies temporarily join forces to undertake a particular project.
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subsidiary corporation
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one that is owned by another corporation
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parent corporation
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a corporation that owns a subsidiary
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