Business Environment
Environmental scanning
▪ Environmental scanning are techniques to identify issues.
▪ It is a continues process to act timeously and to eliminate potential “threats”.
▪ The purpose is to create /a competitive advantage and sustainability.
Micro environment
✓ Internal
✓ Full control
✓ Vision, mission, business structure, management, cultures, values and business function.
SWOT analysis: Strengths and Weaknesses
▪ Strengths: Internal factors which have a positive impact and create competitive advantage
to the business, i.e. resources, available capital, developed operating structures, skilled staff,
etc.
▪ Weaknesses: Internal factors that have a negative impact and hampers competitiveness, i.e.
lack of resources, lack of processes, etc.
RBA: Resource-based analysis
▪ Resource must be rare to create a competitive advantage.
▪ Resource must be unique to ensure benefit to the business.
▪ Resource must be used / applied to create benefit.
▪ Resource must be expensive so that it can’t be easily bought.
VCA: Value Chain Analysis
▪ Internal processes must be linked to present unity.
▪ Must result in differentiation, where the business is more successful due to the way of
operating its activities.
▪ Must result in lower operating costs due to improved efficiency.
BSC: Balanced scorecard
▪ Financial perspective, i.e. Return on Investment, profitability, debt.
▪ Efficiency of internal processes, i.e. carbon footprint, recycling, etc.
▪ Learning and growth of staff, i.e. Skills development / training.
▪ Customer perspectives, i.e. brand loyalty, customer retention, etc.
Business Studies Business Environment | 1
Environmental scanning
▪ Environmental scanning are techniques to identify issues.
▪ It is a continues process to act timeously and to eliminate potential “threats”.
▪ The purpose is to create /a competitive advantage and sustainability.
Micro environment
✓ Internal
✓ Full control
✓ Vision, mission, business structure, management, cultures, values and business function.
SWOT analysis: Strengths and Weaknesses
▪ Strengths: Internal factors which have a positive impact and create competitive advantage
to the business, i.e. resources, available capital, developed operating structures, skilled staff,
etc.
▪ Weaknesses: Internal factors that have a negative impact and hampers competitiveness, i.e.
lack of resources, lack of processes, etc.
RBA: Resource-based analysis
▪ Resource must be rare to create a competitive advantage.
▪ Resource must be unique to ensure benefit to the business.
▪ Resource must be used / applied to create benefit.
▪ Resource must be expensive so that it can’t be easily bought.
VCA: Value Chain Analysis
▪ Internal processes must be linked to present unity.
▪ Must result in differentiation, where the business is more successful due to the way of
operating its activities.
▪ Must result in lower operating costs due to improved efficiency.
BSC: Balanced scorecard
▪ Financial perspective, i.e. Return on Investment, profitability, debt.
▪ Efficiency of internal processes, i.e. carbon footprint, recycling, etc.
▪ Learning and growth of staff, i.e. Skills development / training.
▪ Customer perspectives, i.e. brand loyalty, customer retention, etc.
Business Studies Business Environment | 1
