Edition – Chapter 1: The Concept of Business in
Context | Instructor Resource Guide 2026–
2027
All chapters covered
1
, BUSINESSINCONTEXT,8thEDITION –TEACHING f f f f f f
MANUAL CHAPTER ONE f f f
THECONCEPTOFBUSINESSINCONTEXT f f f f f
This chapter explains the ‘Business in Context’ model that is used throughout the book.
f f f f f f f f f f f f f
All four contexts are identified; environmental, organizational, strategic and functional,
f f f f f f f f f f
referred to as ‘activities level’ context. In addition, two theoretical framework outlines
f f f f f f f f f f f f
are offered; systems and contingency. Both frameworks have been used to develop
f f f f f f f f f f f f
the ‘Business in Context’ model.
f f f f f
The model can be used to analyze individual firms and entire industrial or business
f f f f f f f f f f f f f
sectors. A useful exercise for students is to nominate a particular sector, firm or
f f f f f f f f f f f f f f
organization known to them (it could be their college, university or their department) and
f f f f f f f f f f f f f f
get them to develop an analysis using the ‘Business in Context’ model.
f f f f f f f f f f f f
Discussionquestionsand answers f f f
Below you will find suggested answers to the discussion questions set at the end of every
f f f f f f f f f f f f f f f
chapter. It must be stressed that these answers offer guidance only and are not intended
f f f f f f f f f f f f f f f
as ‘model’ answers. It is important that students think for themselves and many of the
f f f f f f f f f f f f f f f
questions require them to apply the knowledge they have gained from the book to a
f f f f f f f f f f f f f f f
specific context. We recognize that such contexts may vary for different groups of
f f f f f f f f f f f f f
students. It is more important that students think of the issues in the industry, business
f f f f f f f f f f f f f f f
or even national context that is most relevant to them. In some cases, a specific answer
f f f f f f f f f f f f f f f f
cannot be given but, where this happens, suggestions are offered for tackling the
f f f f f f f f f f f f f
question.
f
2
,1. The five environmental variables, five organizational variables and five
f f f f f f f f
business activities have been identified in the model. By necessity, these
f f f f f f f f f f f
represent broad categories. What are the possible elements that might be
f f f f f f f f f f f
considered under the various headings used in our model of business?
f f f f f f f f f f f
Environmentalcontext f
Economy
f
(The natural environment and its impact on the economy could be considered
f f f f f f f f f f f
hereorunder a separateheading,in addition tothefive elements identified in the
f f f f f f f f f f f f f f f
book. This could be a useful starting point to get students to think about the
f f f f f f f f f f f f f f f
utility of the model.)
f f f f
• Level of activity f f
• Economic structure f
• Economic change f
• Internationalfinance andcurrency exchange f f f f
• Natureoflabourmarkets f f f
• Competitivestructures f
• Globalization
• Multinationals
Thestate
f
• Political ideology f
• Political change f
• Governmenteconomicpolicy f f
• Legislation
• Level of intervention and typesof intervention
f f f f f f
• Natureand roleof bureaucracy f f f f
• Interestgroups f
• Supranationalorganizationsandglobalization f f f
Technology
• Product and process technology f f f
• Changinguse of technology in organizations f f f f f
• Information technology f
• Digitaland socialmediatechnology f f f f
• Scaleandnatureoftechnological change f f f f f
• Technologyandtheglobaleconomy f f f f
• E-Commerce
• Impactonorganizationstructure f f f
• Impactonlabourmarkets and jobs f f f f f
Labour
• Behaviour oflabour markets f f f
• Compositionofthelabourforce f f f f
3
, • Changingnature ofjobsandthe labour force f f f f f f f
• Role of trade unions
f f f
• Alternativeformsofemployeerepresentation f f f f
Cultureand institutions
f f
• Nationaldifferences f
• Sub-national and sub-cultural differences f f f
• Globalization,convergence andculture f f f
• Businesspractices andmanagementstylesindifferentcultures
f f f f f f f
• Impact ofcultureonbusiness successf f f f f
• Transferofideasandpractices acrosscultures f f f f f f
• Non-cultural bases of national differences, such as the nature of f f f f f f f f f
government, legislation,education system, financial systems, stock
f f f f f f f
markets, etc.
f f
Organizationalcontext f
Goals
f
• Types of goals f f
• Missionstatements f
• Goals and strategy, goalsandoperations
f f f f f
• Goal conflict
f
• Goalsandperformance
f f
• Business ethics f
Ownership
• Ownership and control f f
• Thenotion of agency
f f f
• Types of ownership f f
• Ownershipandperformance f f
• Publicversusprivate ownership
f f f
Structure
• Typesof structure f f
• Influenceson structure f f
• The link between strategy and structure
f f f f f
• Structure and performance f f
• The flexible firm
f f
Size
• Issuesrelatedto large versus small firms
f f f f f f
• Sizeand structure
f f
• Sizeandbusinessperformance
f f f
• The small firms sector and its role inthe economy
f f f f f f f f f
4