Manage Changing Global Environment
Transaction Costs
Risk <-> Specific Assets
Opportunism <-> Small Numbers
Environmental uncertainty < - > Bounded rationality
Transaction Theory
goal to minimize the costs of exchanging resources in the env.
Specific assets
Joint Venture
Keiretsu
Interlocking directorate
Co-optation
manages symbiotic dependencies by neutralizing forces in the spec. env
Reputation
Dependencies
Competitive
that exist among org that compete for scarce input + outputs
Symbiotic
that exist between an org and it suppliers
Resource Dependence Theory
Competitive interdependencies *
Cartel
Collusion
Third party linkage mechanism
Symbiotic interdependencies *
> Formal - Merger and takeover
< Formal - Strategic alliance
> Formal - Joint venture
< Formal - Minority ownership
< Informal - Networks
> Informal - Long term contracts
< Informal - Co-optation
> Informal - Reputation
find ways of influencing them to make resources available
minimize dependence on other org's
Analyzing
3.b Designing inter-orgs strategies to control en secure resources
3. a Plan howto deal with contigencies
2.e the exten and nature of competition
2.e rapidly these forces change
2.d linkages between these forces
2.c pattern of interconnectedness
poor environment?
rich environment?
2.b number of forces that affect the org
2.a chart the forces in the specific + general env's
2. Manage transactions with the org effectivelty
1.a Identify sources of uncertainly
1. periodically analyze the org. env
Levels of uncertainty
Org Environment
Specific
forces from outside stakeholders groups
General
Forces that shape the specific env. of orgs
Org. Domain
Environment
Richness
amount of resources available to support an org.
Dynamism
forces that change quickly over time
Complexity
interconnectedness
general forces
specific forces
numbers
strenght
