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Edit Comment Close Premium member Presentation Transcript Slide 1: BUSINESS ENVIRONMENT Management ExtraSlide 2: OBJECTIVES By the end of this workshop you will: have explored the nature of organisations know how an organisation defines its mission and values, and the impact of these on strategic objectives have examined cultural and structural types and identified the culture in your own organisation understand the impact of internal factors on organisational success 1Slide 3: be able to analyze how well your own organization's products/services are performing in the marketplace be able to analyze the competitive nature of your own industry be aware of the impact of technology on an organization have devised a personal action plan. OBJECTIVES CONT. 2Slide 4: Welcome and introductions Aims and objectives Session 1 Review or icebreaker Session 2 Focusing on your organisation Session 3 Developing strategy Session 4 Organisational structure and culture Session 5 The internal environment Session 6 Portfolio analysis Session 7 Industry analysis Session 8 The impact of technology Session 9 Review and action planning AGENDA 3Slide 5: THE CORPORATE ENVIRONMENT 4 transformation process internal environment the organisation industry environment customers suppliers competitors market regulatory and professional groups inputs outputs Technological and eco- environmental forces social and legal forces economic forces political forces macro environmentSlide 6: STRATEGY ‘Strategy is about how we as a corporation get to where we want to be from where we are now.’ 5Slide 7: STRATEGY Strategy is about: the big picture long-term direction the scope and focus of business activities responding to changes in our environment. 6Slide 8: STRUCTURAL TYPES Power Handy likens this to a web. The boss is the key to advancement, not 'titles' or a hierarchy. Do well and you advance – fast. Mess up, and you could be out altogether. 7Slide 9: STRUCTURAL TYPES Role The role structure is sometimes called a bureaucratic one, though this is perhaps only where the role culture is taken to extremes as in government departments. In a role structure, everyone has their designated job descriptions, procedural handbook, accountabilities sheet, hierarchical career path, reward structure and so on. Handy sees this as a sturdy Greek temple. 8Slide 10: STRUCTURAL TYPES Task This structure is associated with a flexible, project based/matrix structure. Handy likens it to a net. Project groups or teams are formed as the need arises, and are disbanded once their task is finished. It is very adaptable, egalitarian, and quick to respond. Microsoft uses a task structure. 9Slide 11: STRUCTURAL TYPES Person This is also egalitarian, though you wouldn't say it was team based. Individuals are independent, and don't feel any particular loyalty. Like consultants in the NHS, or computer programmers who work on short-term contracts. They only come together as a matter of convenience or self-interest. Handy sees this as a cluster or galaxy of mixed stars. 10Slide 12: BOSTON CONSULTING GROUP MATRIX ? High Low Low High Relative market share Market growth rate 11Slide 13: PORTER’S FIVE FORCE MODEL Threat of new entrants Bargaining strength of suppliers Competition among existing industry businesses Threat of substitute products Bargaining strength of buyers 12External Influences - 4: External Influences - 4 Business Ethics, Moral and Environmental IssuesExternal Influences : External InfluencesBusiness Ethics: Business EthicsBusiness Ethics: Business Ethics Rules or standards governing the conduct of a business Moral code – what is ‘right’ and what is ‘wrong’? Highly subjective nature Tension between different stakeholdersStakeholders: StakeholdersStakeholders: Stakeholders Responsibilities to stakeholder groups: Shareholders – Generate profits and pay dividends Customers – provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness Employees – health and safety at work, security, fair pay Suppliers – pay on time, pay fair rates for the work done, provide element of securityStakeholders: Stakeholders Local Community – provide employment, safe working environment, minimise pollution and negative externalities – provide external benefits? Government – abide by the law, pay taxes, abide by regulations Management – their aims versus those of the organisation as a whole Environment – limit pollution, congestion, environmental degradation, development, etc.Moral Behaviour: Moral BehaviourBusiness Ethics: Business Ethics Tensions: Profits versus higher wages Expansion versus development Production versus pollution Supplier benefits versus consumer prices/lower costs Survival of the business versus needs of stakeholdersBusiness Ethics: Business Ethics Examples: Production of children's toys Coffee industry Baby milk Music industry Multi-national operations McDonalds – food quality, litter Chocolate industry Jewellery – diamonds and gold Chemical industryBusiness Ethics: Business Ethics Solutions: Taxation Self Regulation Subsidies Government/EU regulation Legislation Pressure Groups Improve competition and contestability of markets Social and Environmental AuditsSocial and Environmental Audits: Social and Environmental AuditsEnvironment: Environment Urban blight – excessive development, inappropriate development, use of greenbelt land Waste – land-fill? re-cycling? burning? Energy use – renewable energy, non-renewable resources Global Warming – fact or fiction? Pollution: Noise Air Land Sea WaterExternalities: Externalities Impact on a third party of a business decision Those affected not involved in the decision Negative externalities – negative effects of business activity – pollution, urban development, etc e.g. out of town shopping centres – impact on city centresExternalities: Externalities Positive Externalities: Benefits to third parties of business activity e.g. new infrastructure as a result of development, side effects of research and development, technology (the Internet?), convenience, improved standards of living Out of town shopping centres – greater ease of access, everything in one place, pleasant environment to shop in, etc.Externalities: Externalities Out of town shopping centres: Highlights complexity of the interaction of positive and negative externalities Government policies – encourage business activity that leads to positive externalities and discourage those that lead to negative externalitiesSlide 30: Thank You You do not have the permission to view this presentation. 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business environment-1 amitshri0073 Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 124 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: March 01, 2011 This Presentation is Public Favorites: 1 Presentation Description No description available. Comments Posting comment... By: anujpandey (15 month(s) ago) this presentation is very useful for the management students. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript Slide 1: BUSINESS ENVIRONMENT Management ExtraSlide 2: OBJECTIVES By the end of this workshop you will: have explored the nature of organisations know how an organisation defines its mission and values, and the impact of these on strategic objectives have examined cultural and structural types and identified the culture in your own organisation understand the impact of internal factors on organisational success 1Slide 3: be able to analyze how well your own organization's products/services are performing in the marketplace be able to analyze the competitive nature of your own industry be aware of the impact of technology on an organization have devised a personal action plan. OBJECTIVES CONT. 2Slide 4: Welcome and introductions Aims and objectives Session 1 Review or icebreaker Session 2 Focusing on your organisation Session 3 Developing strategy Session 4 Organisational structure and culture Session 5 The internal environment Session 6 Portfolio analysis Session 7 Industry analysis Session 8 The impact of technology Session 9 Review and action planning AGENDA 3Slide 5: THE CORPORATE ENVIRONMENT 4 transformation process internal environment the organisation industry environment customers suppliers competitors market regulatory and professional groups inputs outputs Technological and eco- environmental forces social and legal forces economic forces political forces macro environmentSlide 6: STRATEGY ‘Strategy is about how we as a corporation get to where we want to be from where we are now.’ 5Slide 7: STRATEGY Strategy is about: the big picture long-term direction the scope and focus of business activities responding to changes in our environment. 6Slide 8: STRUCTURAL TYPES Power Handy likens this to a web. The boss is the key to advancement, not 'titles' or a hierarchy. Do well and you advance – fast. Mess up, and you could be out altogether. 7Slide 9: STRUCTURAL TYPES Role The role structure is sometimes called a bureaucratic one, though this is perhaps only where the role culture is taken to extremes as in government departments. In a role structure, everyone has their designated job descriptions, procedural handbook, accountabilities sheet, hierarchical career path, reward structure and so on. Handy sees this as a sturdy Greek temple. 8Slide 10: STRUCTURAL TYPES Task This structure is associated with a flexible, project based/matrix structure. Handy likens it to a net. Project groups or teams are formed as the need arises, and are disbanded once their task is finished. It is very adaptable, egalitarian, and quick to respond. Microsoft uses a task structure. 9Slide 11: STRUCTURAL TYPES Person This is also egalitarian, though you wouldn't say it was team based. Individuals are independent, and don't feel any particular loyalty. Like consultants in the NHS, or computer programmers who work on short-term contracts. They only come together as a matter of convenience or self-interest. Handy sees this as a cluster or galaxy of mixed stars. 10Slide 12: BOSTON CONSULTING GROUP MATRIX ? High Low Low High Relative market share Market growth rate 11Slide 13: PORTER’S FIVE FORCE MODEL Threat of new entrants Bargaining strength of suppliers Competition among existing industry businesses Threat of substitute products Bargaining strength of buyers 12External Influences - 4: External Influences - 4 Business Ethics, Moral and Environmental IssuesExternal Influences : External InfluencesBusiness Ethics: Business EthicsBusiness Ethics: Business Ethics Rules or standards governing the conduct of a business Moral code – what is ‘right’ and what is ‘wrong’? Highly subjective nature Tension between different stakeholdersStakeholders: StakeholdersStakeholders: Stakeholders Responsibilities to stakeholder groups: Shareholders – Generate profits and pay dividends Customers – provide good quality products at reasonable prices. Safety, honesty, decency and truthfulness Employees – health and safety at work, security, fair pay Suppliers – pay on time, pay fair rates for the work done, provide element of securityStakeholders: Stakeholders Local Community – provide employment, safe working environment, minimise pollution and negative externalities – provide external benefits? Government – abide by the law, pay taxes, abide by regulations Management – their aims versus those of the organisation as a whole Environment – limit pollution, congestion, environmental degradation, development, etc.Moral Behaviour: Moral BehaviourBusiness Ethics: Business Ethics Tensions: Profits versus higher wages Expansion versus development Production versus pollution Supplier benefits versus consumer prices/lower costs Survival of the business versus needs of stakeholdersBusiness Ethics: Business Ethics Examples: Production of children's toys Coffee industry Baby milk Music industry Multi-national operations McDonalds – food quality, litter Chocolate industry Jewellery – diamonds and gold Chemical industryBusiness Ethics: Business Ethics Solutions: Taxation Self Regulation Subsidies Government/EU regulation Legislation Pressure Groups Improve competition and contestability of markets Social and Environmental AuditsSocial and Environmental Audits: Social and Environmental AuditsEnvironment: Environment Urban blight – excessive development, inappropriate development, use of greenbelt land Waste – land-fill? re-cycling? burning? Energy use – renewable energy, non-renewable resources Global Warming – fact or fiction? Pollution: Noise Air Land Sea WaterExternalities: Externalities Impact on a third party of a business decision Those affected not involved in the decision Negative externalities – negative effects of business activity – pollution, urban development, etc e.g. out of town shopping centres – impact on city centresExternalities: Externalities Positive Externalities: Benefits to third parties of business activity e.g. new infrastructure as a result of development, side effects of research and development, technology (the Internet?), convenience, improved standards of living Out of town shopping centres – greater ease of access, everything in one place, pleasant environment to shop in, etc.Externalities: Externalities Out of town shopping centres: Highlights complexity of the interaction of positive and negative externalities Government policies – encourage business activity that leads to positive externalities and discourage those that lead to negative externalitiesSlide 30: Thank You