1. Organization – A tool people use to coordinate their actions to obtain something they desire or value.
2. Entrepreneurship – The process by which people recognize opportunities to satisfy needs and then gather and use resources to meet those needs.
3. Organizational Environment – The set of forces and conditions that operate beyond an organization’s boundaries but affect its ability to acquire and use resources to create value.
4. Economies of scale – Cost savings that result when goods and services are produced in large volume on automated production lines.
5. Economies of scope – Cost savings that result when an organization is able to use underutilized resources more effectively because they can be shared across different products or tasks.
6. Transaction Costs – The costs associated with negotiating, monitoring and governing exchanges between people.
7. Organizational Theory – The study of how organizations function and how they affect and are affected by the environment in which they operates.
8. Organizational Structure – The formal system of task and authority relationships that control how people coordinate their actions and use resources to achieve organizational goals.
9. Organizational Culture – The set of shared values and norms that controls organizational member’s interactions with each other and with suppliers, customers and other people outside the organization.
10. Organization Design – The process by which managers select and manage aspects of structure and culture so that an organization can control the activities necessary to achieve its goals.
11. Organizational Change – The process by which organizations redesign their structures and cultures to move from their present state to some desired future state to increase their effectiveness.
12. Contingency – An event that might occur and must be planned for.
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