Chapter 2 business summary

Chapter 1 Recap
Chapter 2: Overall Organisation Performance
Macro environment= External business influences using PEESTLE
(Political,Economic,Ethical, Social, Technological,
Legal,Environmental)

External business influences using Porter’s Six Forces
(Level of rivalry,Threat of new
Market environment= entrant,Substitutes,Complementary products,Power
of buyer,Power of supplier,


Internal business influences of 8 Business Functions
Micro environment= (Purchasing,Production,Financial,Human Capital, Marketing,
Public Relations, Administration, General Management)



Chapter 2: Overall Organisation Performance
Creative thinking and problem solving techniques to
identify strategies to improve the business
Creative thinking definition: Identifying a problem that the consumer is not aware of yet
and finding a way to solve that problem.
[with the AIM of finding creative solutions to create, maintain or adapt a competitive
advantage]


Steps of the problem-solving process
Identify the
resource gap
and obtain
these resources
Explain the impact on
the business and
consider different
solutions
Choose the best
solutions and
explain it in depth
and breadth