OTD - Chapter 3 Manage changing global environments

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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