Manage Changing Global Environment

Complexity

strenght

numbers

interconnectedness

specific forces

general forces

Dynamism

forces that change quickly over time

Richness

amount of resources available to support an org.

General

Forces that shape the specific env. of orgs

Specific

forces from outside stakeholders groups

Complexity

Dynamism

Richness

1. periodically analyze the org. env

1.a Identify sources of uncertainly

2. Manage transactions with the org effectivelty

2.a chart the forces in the specific + general env's

2.b number of forces that affect the org

2.c pattern of interconnectedness

rich environment?

poor environment?

2.d linkages between these forces

2.e rapidly these forces change

2.e the exten and nature of competition

3. a Plan howto deal with contigencies

3.b Designing inter-orgs strategies to control en secure resources

minimize dependence on other org's

find ways of influencing them to make resources available

Symbiotic interdependencies *

> Informal - Reputation

< Informal - Co-optation

< Formal - Strategic alliance

> Informal - Long term contracts

< Informal - Networks

< Formal - Minority ownership

> Formal - Joint venture

> Formal - Merger and takeover

Competitive interdependencies *

Third party linkage mechanism

Collusion

Cartel

Symbiotic

that exist between an org and it suppliers

Competitive

that exist among org that compete for scarce input + outputs

manages symbiotic dependencies by neutralizing forces in the spec. env

goal to minimize the costs of exchanging resources in the env.

Environmental uncertainty < - > Bounded rationality

Opportunism <-> Small Numbers

Risk <-> Specific Assets