1. Stakeholders &
Business Environment

2. Business Perspective
Stakeholders
Business Environment

3. Business perspective Traditional view System view
Business as economic institution
Business as socio-political institution
System view
Business as multipurpose institution

4. Traditional perspective
Business as economic institution
Business as economic entity that interacts with society only through transaction in the marketplace
Business as socio-political institution
Business as sociopolitical entity that interacts with society through complex interaction for increasing wealth and prosperity of society

5. Business as an economic institution
Price & Product
Quality
Choice of
employees
Business Firm
Quantity of
output
Use of
resources

6. Business as sociopolitical institution
Changes in
Ideologies &
Values
International
Environment
Increased Govt.
Intervention:
Statutory Law
Admnistrative Law
Upgrading of
Ethical Standard
Increased Influence
of external or public
Interest Group
Business Firm
Increased Importance
of Internal
Stakeholder Group
Improved
Communication&
Increased Impt of
Media
Changing Att.of
Society toward
Business

7. System Perspective
Business as a living organization that interacts with and affected by environment for economic and social motive ( multipurpose motive ) by using the limited resources
Key To Survival is
Capacity to adapt efficiently the changing condition posed by the environment

8. Business as Multipurpose Institution
Economic Response
Government:
Political Action
Legislative Act
Judicial Action
Regulatory Act
Market
Process
Efficiency
Market:
Competition
Business:
Economic
Social
Political
Stakeholder:
Expectation
Public Policy
Process
Equity
Sociopolitical Response

9. Stakeholders
All groups affected by a corporation’s decision and policy
All groups affected
by a corporation’s
decision and policy
Primary
Primary
Secondary

10. Primary Stakeholder Employees (union) Wholesaler Shareholder Retailer
Skill
Distribution
Capital
Business
Creditor
Competitor
Compete
Lend Money
Money
Material
Customer
Supplier

11. Nature of Interest and Power
Interest Power
Shareholder - Return/Dividend Exercising voting right
- Capital Gain Exercising right to inspect
book and record
Employee Stable employment Strike
- Fair pay Union bargaining power
- Safe and comfortable Publicity
Creditor Repayment of loan Calling in loan
- Interest Take over loan’s collateral
Supplier Regular order Refusing to meet order
- Paid promptly Supplying to com[etitor
Distributor - Good product quality Buying from competitor
- High reliable product Boycotting company
Customer Fair exchange Purchasing from competitor
- Safe & reliable product - Boycotting company
Competitor - Be profitable Forcing to”keep up”
- Gain a larger market Charge lower price

12. Secondary Stakeholder
Local
Communities
General
Public
Central/Local
Govt.
Skill,
Environment
Opinion
Regulation
Tax
Business
Friendly
Hostile
Foreign Govt.
Business
Support
Services
Image,
Publicity
Social
Demand
Media
Social Activist

13. Nature of Interest and Power
Interest Power
Local Com Employ local residents Restricting operating licenses
- Environment is protected - Lobbying government for
- Local area is developed regulation of the company
Social Ensure that company Publicizing the negative issues
Activist conform to legal and Lobbying government for
ethical standard regulation of the company
Media Keep the public informed - Publicizing the negative issues
on all issues
- Monitor the company
Business Provide services and Assist company in business
Support information endeavor & dev. effort
Government - Taxes Regulation, licenses,& permit
- Economic development Boycotting company
Foreign Gov. - Economic development Permit to do business
- Social improvement Regulation
General Social value Protected Support activist
Public Prosperity for society Condemn or praise company
- Risk minimized Press government to act

14. Business Environment External environment Internal environment
Societal ( macro ), influence the entire businesses in the same way and magnitude
Stakeholders, do not influence the business in the same way and magnitude
Internal environment

15. Internal Environment
Identify strength and weaknesses for responding to the external environment
Corporate Structure
The way of the corporation is organized in term of authority, work and information flow, communication
Corporate Culture
The collection of beliefs, expectation and value, shared by its members
Produce norms that shape the behavior of employees
Corporate Value
Explain the action taken with respect to an issue
Corporate Resources

16. Identify opportunities and threats for survival and future success
External Environment
Identify opportunities and threats for survival and future success
Economic
Political relationship,
processes, changes
Stability of Government
Regulation & Legal aspect
Social Value, etc
Interest rate
Unemployment
Inflation,GNP
Poverty Rate, etc
Business
Firm
Social
Politic
Demographic
Life style
Population Growth
Age Distribution
Social Value, etc
Product & Process
Innovation
Scientific Discovery
Etc
Technology

17. Business Interaction
Business
Firm
Government
Society

18. Business Interaction Market Non Market Local Communities
Central/Local Govt.
Foreign Govt.
Social Activist
Media
General Public
Business Support
Shareholder Employee
Creditor
Supplier
Distributor
Customer
Competitor
Business Firm

19. Business Interaction Monopoly Oligopoly Free Market Business Consumer

20. Free Market System Business Firm Consumers Competitive Price Voluntary
Needs & Wants
Good & Services
Competitive
Price
Voluntary
Exchange
Supply
Demand
Satisfaction
Profit

21. Consumer Bill of Right Right to safety Right to be informed
Right to choose
Right to be heard

22. Business and Community
Request made to business
Assistance for less advantages people
Support for air and water pollution control
Support for cultural and artistic activist
Employment and advancement of minority and women
Assistance in urban planning and development
Support of health care program
Donation

23. Business and Government
Assure good and beneficial relations between business ant its stakeholder
Regulating Empowering Controlling

24. Basic Strategies to Cope with Environmental Changes
Inactive Strategy
Do nothing
Reactive Strategy
Environment changes first ant then organization responds to it
Proactive Strategy
Organization initiates changes and than environment altered
Interactive Strategy
Organization and environment are changing simultaneously in the same direction

25. SEKIAN
TERIMA KASIH