Chapter 2- Overall Organisation Performance
Macro Environment
PE2STLE
● Political
● Economical
● Ethical
● Social
● Technological
● Legal
● Environmental
Market Environment
Porter’s Six Forces Model
● Power of competitors
● Threat of new entrants
● Substitute Products
● Power of buyers
● Power of suppliers
● Impact of complementary products
Micro Environment
Eight Business Function
● Purchasing function
● Production department
● Financial function
● Human Resources
● Marketing department
● Administrative function
● General Management
1. The importance of creative thinking and problem solving
techniques to identify strategies to improve the overall
performance of the business
- Defined as identifying a problem the consumer is not even aware of yet and finding a
way to solve that problem
- Aim is to create and maintain a competitive advantage, as well as adaption of the
product life cycle
, 2. Problem-solving Techniques
2.1 Pros and Cons Chart
- Make a decision based on the advantages and disadvantages of a specific option
PROs CONs
*CHECK BOOK p.29
2.2 Decision Tree
- Visual representation of different outcomes to a single event
2.3 Value Chain Analysis
- Aim is to add value for the stakeholders/customers to be satisfied
- Review entire business process to decide where value is added / can be added in a cost
effective manner to enhance the quality of the product or service rendered
2.4 PE2STLE Analysis
- Analyse each sector and formulate strategies to overcome the challenges
2.5 SWOT Analysis
- Used to assess the internal and external environments\
- Strength & Weakness > Internal (8 Business functions/ Micro Environment)
- Opportunity & Threat > External (Makro/ Market Environments)
*CHECK BOOK p.31
2.6 The Delphi Technique
- Obtains the opinions of experts on a particular topic without face-to-face engagement
- Experts remaining anonymous prevents subjectivity and bias when expressing their
opinions / recommendations critically
- First information will be collected from a panel of people about their expectations
Macro Environment
PE2STLE
● Political
● Economical
● Ethical
● Social
● Technological
● Legal
● Environmental
Market Environment
Porter’s Six Forces Model
● Power of competitors
● Threat of new entrants
● Substitute Products
● Power of buyers
● Power of suppliers
● Impact of complementary products
Micro Environment
Eight Business Function
● Purchasing function
● Production department
● Financial function
● Human Resources
● Marketing department
● Administrative function
● General Management
1. The importance of creative thinking and problem solving
techniques to identify strategies to improve the overall
performance of the business
- Defined as identifying a problem the consumer is not even aware of yet and finding a
way to solve that problem
- Aim is to create and maintain a competitive advantage, as well as adaption of the
product life cycle
, 2. Problem-solving Techniques
2.1 Pros and Cons Chart
- Make a decision based on the advantages and disadvantages of a specific option
PROs CONs
*CHECK BOOK p.29
2.2 Decision Tree
- Visual representation of different outcomes to a single event
2.3 Value Chain Analysis
- Aim is to add value for the stakeholders/customers to be satisfied
- Review entire business process to decide where value is added / can be added in a cost
effective manner to enhance the quality of the product or service rendered
2.4 PE2STLE Analysis
- Analyse each sector and formulate strategies to overcome the challenges
2.5 SWOT Analysis
- Used to assess the internal and external environments\
- Strength & Weakness > Internal (8 Business functions/ Micro Environment)
- Opportunity & Threat > External (Makro/ Market Environments)
*CHECK BOOK p.31
2.6 The Delphi Technique
- Obtains the opinions of experts on a particular topic without face-to-face engagement
- Experts remaining anonymous prevents subjectivity and bias when expressing their
opinions / recommendations critically
- First information will be collected from a panel of people about their expectations
