Unit 1.5 – External Environment

Slides:

Advertisements

Similar presentations

The Global Context Lecture 3 The Global Business Environment.

Advertisements

Chapter 3 – Understanding Internal & External Environments

1.5 External Environment PEST Analysis. PEST ANALYSIS This form of business analysis examines the external environment and the global factors that may.

PowerPoint Warehouse Series

Strategize Your Organization’s Future: Perform a Killer Pest Analysis Danette Shepard, MPA D.R. Shepard Consulting and Services, LLC.

Business Studies Grade 11.

BTEC Level 3 Business Unit 1 Assignment 2 – P6, M3, D2.

Strategic Management Environmental Analysis Prof.Dr. E.Vatchkova.

Spring Environmental analysis is a crucial step in the business planning process. PEST analysis identifies the elements within the environment that.

The Marketing Environment and Competitor Analysis

Analysing News Articles. Questions for Analyzing Social Issues 1. What are the social issues associated with a particular IT development? 2. How did.

International Business Environment & Strategy MOD Determinants of national advantage – and where in the world to locate Market entry © Robert Jones.

Tutor Peter Considine. (Core Text Exploring (Corporate) Strategy, © Pearson Education Ltd 2008 or 2011) 1 Lecture Week 2 Assessing The Strategic Position.

Environmental Analysis

1.5 External Environment This topic assesses the importance of external influences on business performance and decision- making. To survive and prosper businesses must.

PEST ANALYSIS Sports & Entertainment Marketing. PEST stands for… P OLITICAL FACTORS E CONOMIC FACTORS S OCIAL FACTORS T ECHNOLOGICAL FACTORS.

Chapter 2 Situation & Environmental Analysis. COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved. Components of a Situation Analysis... Internal.

TRANSFORMING CAPABILITY SUPPORT MATERIALS LEADING VISION CREATION PESTLE Introduction PESTLE is an analytical framework which can be used to evaluate the.

1.5 External Environment STEEPLE Analysis.

External influences. External influences on business Businesses are influenced by a range of factors over which they have little control – these are called.

Environmental Forces Firm/ Organization: Structure Culture Competencies Resources Industry Trade Association Government Union/ employees Competitors Creditors.

International Business Environment

IB Business and Management

PEST ANALYSIS These factors affect a business and are beyond the control of the business P olitical E conomic S ocial T echnological.

Strategic Management Business Environment Scanning General.

Effectiveness and Limitations of Economic Policies  Chapter 18 is excellent summary of Topic 3 and Topic 4.

Learning Outcomes Define the broad categories of factors that affect the marketing environment Explain the distinction between the microenvironment and.

Definition : An analysis and evaluation process that businesses use to understand their current environment.

1.5 External Environment PEST Analysis. PEST ANALYSIS This form of business analysis examines the external environment and the global factors that may.

Planning Planning is the establishment of objectives, evaluation and selection of policies, strategies tactics and action required to achieve them. A Forecast.

PESTLE analysis. Aims Prepare a PESTLE analysis for a given situation and use it to analyse the impact of the external environment on a firm. Evaluate.

International Business Environment & Strategy MOD Determinants of national advantage – and where in the world to locate Market entry © Robert Jones.

1.5 External Environment PEST Analysis. External Factors that Impact Business Political and Legal Issues  Employment laws  Consumer Protection Laws.

Unit 1.5 The external Environment PEST analysis (and other variants)

PESTLE ANALYSIS. WHY IS IT USEFUL? HSC Syllabus outcomes: H2Evaluates management strategies in response to changes in internal and external influences.

PESTLE Analysis Mark Fielding-Pritchard 1. Introduction  Introduction  PEST Analysis  PESTLE Analysis  Dimensions of the model  Aim of the analysis.

MBA 563 Dr Mukaro  Direction and scope of an organisation over a long period of time which achieves advantages in a changing environment through.

ACCA F1 – Accountant in Business Lecture 4&5 Dr. Randolph Metz-Johnson

Level 2 Business Studies AS90844 Demonstrate understanding of the external operations of a large business.

PESTEL Scan IT Entrepreneurial Work Term Presentation.

EXTERNAL INFLUENCES These are factors that the business can not control (External constraints) PESTEL Analysis is a part of the external analysis that.

SLEPT Analysis Use in conjunction with the Intellectual Property Office Summary Study THE TIMES 100.

1.5 External Environment 1.6 Organizational Planning Tools PEST(LE) SWOT Boston Matrix Ansoff Matrix Porter Five Forces.

MKT 421 Week 5 Individual Assignment Environmental Factors Select an organization with which you are familiar that conducts both domestic and global marketing.

1.5 External Environment 6 hrs

External Influences: PESTLE Analysis

Level 2 Diploma in Business Administration

Labor Market information and Trends

External influences.

BUS662 SMALL BUSINESS CONCEPTUAL ISSUES. Learning Outcome: To conduct environmental analysis and thereby analyse requirements of a strategic Chapter 3:

TOPIC: Topic 1: Business Organization and Environment

Political, Economic, Social and Technological analysis

EXTERNAL ENVIRONMENT INDUSTRY, MARKETS COMPETITION ECONOMY

The Marketing Environment and Competitor Analysis

PEST Analysis ENT Entrepreneurial Creation By: Kimille Miller

External Influences on Business

MACROECONOMICS and ENVIRONMENTAL ASPECT

PESTEL Markedsanalyse.

Factors Affecting the Business Environment

Acquire knowledge of the impact of government on business activities to make informed economic decisions 5.04.

Handout 11: Understanding the organisational environment

MACRO ENVIRONMENT.

Social Responsibility, Ethics and the Marketing Environment

Situation & Environmental Analysis

Assessing and Managing Risk

Introduction to Business Lecture 02

Part I: The Strategic Position

Unit 1.5 External Influence

Industry Analysis ©2015 Robert M. Grant & Judith Jordan

Presentation transcript:

Unit 1.5 – External Environment IB Business Management

Goals for the Chapter Prepare a STEEPLE analysis of an organization Explain the consequences of a change in any of the STEEPLE factors for a business’s objectives and strategy

Impact of External Environment All businesses operate in an “environment” Environment in business refers to conditions “external” to the business. External environment is complicated What happens in the external environment is beyond the control of the business

STEEPLE Current way to analyze Older Versions PEST – Political, economic, social, technological PESTLE - Political, economic, social, technological, Legal and Ecological STEEPLE – Social, Technological, Economic, Ecological, Political, Legal and Ethical

The Business Technological Economic Ethical Political Legal Ecological Social

Impact of Changes in STEEPLE factors If something changes, will impact the business A STEEPLE analysis allows the business to consider influences of each element on the business Most important influences determined Then a strategy can be developed to deal with changes.

Common influences in a STEEPLE ANALYSIS Social Lifestyles; Social mobility; Demographics, Education, Fashions or tastes Technological New technology; improved technology, infrastructure; Research & Development Costs Economic Economic or business cycle, rate of economic growth, rate of inflation, rate of unemployment, interest rates, exchange rates Ethical Corruption, transparency, codes of behavior, fair trade Political Political stability, trade policies, regional policies, lobbying Legal Regulations, Health & Safety legislation, Employment laws, competition laws Ecological Depletion of renewable resources, organic farming, global warming, carbon footprints

1.5 Work ToK Discussion To what degree are businesses limited in how much they can “know” about the external environment Look at STEEPLE analysis for Cat’s Store – p. 63 Student Workpoint 1.8 Choose a type of business (some located on page 63); prepare a STEEPLE analysis. Practice Question – page 64 – China!!

How do businesses react? Must be flexible Must be willing to change and adapt Being an Early Adaptor Having First Mover Advantage A business must always be monitoring the external environment in order to change when needed.