CHAPTER 1 BUSINESS
ENVIRONMENTS
Continuous environmental
ENVIRONMENTAL SCANNING: scanning:
→ obtaining and processing Information from an → vision and mission
environment to help with future events. → strategies
→ take advantage of opportunities to overcome threats.
micro SWOT Strengths and weaknesses
internal
environmental
scanning:
externnal market Porters 6 forces
macro PESTLE
MICRO:
Strengths: Weaknesses:
→ competitive price → strengths turn into a Opportunities:
→ location weakness if not properly → external factors which give
→ unique products (patent) managed. the business an opportunity on
→ work skills →internal, no external competitors.
→ business culture influence.
→ good marketing, strong Threats:
brand → external factors which might hamper the growth and success.
→ access to financing and
other resources
→ opperational efficiency
MARKET:
attractive market Unattractive market
high barrier to entry (not oversaturated) low barrier of entry
low levels of competition high levels of competition
few substitute products many substitute products
weak supplier, bargaining power strong supplier, no bargaining power
weak buyer, bargaining power strong buyer, no bargaining power
,CHAPTER 1 BUSINESS
ENVIRONMENTS
MARKET:
Porters 6 forces: Suppliers have strong power:
1. threat of new competitors. → few suppliers in market
2. current competitors. →large, well-established
3. threat of substitute products. →limited options to sub substitute
4. power of supplier. products
5. power of buyer. →cost of switching is too expensive
6. impact of complementary
products. Buyers have strong power:
→ buyer buys in bulk
→there are many suppliers selling the same thing
→only a few buyers exist
→easy and affordable to change supplier
→buyer has the ability to integrate backwards in
the distribution channel
MACRO:
P olitical
effect each other
E conomic
S ocial
T echnology
L egal
E nvironmental
Example:
interest rates decrease (economic)
business can now afford new technology (technology)
production increases, hire more people (social)
greater standard of living (social)
greater profits (economic)
, CHAPTER 2 CORPORATE SOCIAL
RESPONSIBILITY (CSR)
→ The relationship between the business (corporate) and the impact on
society (social).
poor CSR questions:
crime
housing
→ What level of responsibility does the business
Inequality poverty have?
CSR → To whom is the business responsible to?
issues → How long will the business be involved?
poor health
services
lack of
education
→ How will this CSR program affect day to day
activities?
Environmental unemploy- → What is the responsibility of each
concerns ment stakeholder?
The great pyramid of responsibility:
Responsibility:
discretionary
1.Primary:
→ business is responsible for those
legal
directly affected by the success of the
business.
ethical
2.Secondary: (broader)
→ indirectly affected by the business.
economic
against CSR: for CSR:
mismanagement of programs good reputation with locals
takes away from business activities protecting resources
difficult to measure success socially responsible workplace
“loss” to the business operate in sustainable ways
ENVIRONMENTS
Continuous environmental
ENVIRONMENTAL SCANNING: scanning:
→ obtaining and processing Information from an → vision and mission
environment to help with future events. → strategies
→ take advantage of opportunities to overcome threats.
micro SWOT Strengths and weaknesses
internal
environmental
scanning:
externnal market Porters 6 forces
macro PESTLE
MICRO:
Strengths: Weaknesses:
→ competitive price → strengths turn into a Opportunities:
→ location weakness if not properly → external factors which give
→ unique products (patent) managed. the business an opportunity on
→ work skills →internal, no external competitors.
→ business culture influence.
→ good marketing, strong Threats:
brand → external factors which might hamper the growth and success.
→ access to financing and
other resources
→ opperational efficiency
MARKET:
attractive market Unattractive market
high barrier to entry (not oversaturated) low barrier of entry
low levels of competition high levels of competition
few substitute products many substitute products
weak supplier, bargaining power strong supplier, no bargaining power
weak buyer, bargaining power strong buyer, no bargaining power
,CHAPTER 1 BUSINESS
ENVIRONMENTS
MARKET:
Porters 6 forces: Suppliers have strong power:
1. threat of new competitors. → few suppliers in market
2. current competitors. →large, well-established
3. threat of substitute products. →limited options to sub substitute
4. power of supplier. products
5. power of buyer. →cost of switching is too expensive
6. impact of complementary
products. Buyers have strong power:
→ buyer buys in bulk
→there are many suppliers selling the same thing
→only a few buyers exist
→easy and affordable to change supplier
→buyer has the ability to integrate backwards in
the distribution channel
MACRO:
P olitical
effect each other
E conomic
S ocial
T echnology
L egal
E nvironmental
Example:
interest rates decrease (economic)
business can now afford new technology (technology)
production increases, hire more people (social)
greater standard of living (social)
greater profits (economic)
, CHAPTER 2 CORPORATE SOCIAL
RESPONSIBILITY (CSR)
→ The relationship between the business (corporate) and the impact on
society (social).
poor CSR questions:
crime
housing
→ What level of responsibility does the business
Inequality poverty have?
CSR → To whom is the business responsible to?
issues → How long will the business be involved?
poor health
services
lack of
education
→ How will this CSR program affect day to day
activities?
Environmental unemploy- → What is the responsibility of each
concerns ment stakeholder?
The great pyramid of responsibility:
Responsibility:
discretionary
1.Primary:
→ business is responsible for those
legal
directly affected by the success of the
business.
ethical
2.Secondary: (broader)
→ indirectly affected by the business.
economic
against CSR: for CSR:
mismanagement of programs good reputation with locals
takes away from business activities protecting resources
difficult to measure success socially responsible workplace
“loss” to the business operate in sustainable ways
