Intro to the Business Environment

CONTEMPORARY DEVELOPMENTS IN BUSINESS AND MANAGEMENT

Topics
How this module is structured Business as a transformation system The business environment Internal environment External environment PESTLE analysis Homework.

Module Structure
Assessment: 100% - three hour exam You are allowed 10 sides of A4 paper full of notes. May be the difference between pass/fail. Prepare these notes carefully. You submit these with the exam. You will choose one company/industry, that will imply one country. Your answers will center on this choice. You will form groups around that company/industry, but you will not choose the group members. Each week will include one lecture (teacher talks) day and one discussion / mock test (students talk) day.

The business as a transformation system

Inputs Land Materials and equipment Human resources Technology Financial resources Transformation

Outputs Goods or services Ideas and information

Feedback

Analyzing the business environment

Internal environment External environment Task and general environments (read on your own) Function-specific environments (read on your own).

Internal environment
Structure Culture Policies and procedures Skills and human resources (competencies) Knowledge and data.

External environment
Political environment Economic environment Social and cultural environment Technological environment Legal environment Ecological environment Competitors Ethical environment Financial environment.

PESTLE
Political -The nature and stability of the government in power -Attitudes to taxation and social welfare -Attitudes to foreign trade and trading blocs Economic -Wage rates, GDP, Interest rates -Inflation, Unemployment -International economic trends -Business cycles (national and foreign) Socio-cultural -Demographics, Religious beliefs -Income distribution, Lifestyle -Attitudes to work and leisure -Attitudes to education and consumerism Technological -Spending on research by government and industry -Innovative developments -Rate of technology transfer -Technology infrastructure Legal -Financial regulation -Product safety legislation -Health and Safety -Employment law Eco-environmental -Legislation on environmental factors -Changing attitudes to the environment -Energy consumption -Waste disposal

Group Exercise
Form groups of 4 or 5 people Choose a company that you want to know well
Consider previous assignments youve done Consider companies you or your parents work(ed) for Consider companies you really like Can be from any country

Each group should choose a different company Create a PESTLE analysis for that company.

Homework
Read about the financial environment.