100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Summary Chapter 2 advanced management $3.21
Add to cart

Summary

Summary Chapter 2 advanced management

 141 views  0 purchase
  • Course
  • Institution
  • Book

Summary advanced management chapter 2 Fundamentals of Strategy and lecture

Preview 1 out of 8  pages

  • No
  • H2
  • January 29, 2017
  • 8
  • 2016/2017
  • Summary
avatar-seller
Summary advanced management lecture 2

Chapter 2 & 3



Chapter 2 The environment > external analysis

The environment is what give organisations their means of survival. It creates opportunities and it
presents threats. For example, the rise of the Chinese economy has created opportunities for Western
mobile phone manufacturers, at the same time as producing threats in terms of new competitors such
as ZTE and Huawei.

 The future can never be predicted perfectly, it is clearly important that entrepreneurs and
managers try to analyse their environments as carefully as they can in order to anticipate and,
if possible, influence environmental change.

Frameworks for analysing changing and complex environments:

(1) The macro-environment: the highest level layer that consists of broad environmental factors
that impact to a greater or lesser extend on almost all organisations.
(2) Industry, or sector: the next layer within this broad general environment and is made up of
organisations producing the same sorts of products or services.
(3) Competitors and markets: the most immediately layer surrounding organisations.

Macro-environment – PESTEL and scenarios

PESTEL provides a wide overview and scenarios build on this in order to consider how the macro-
environment might change. This could be overwhelming in the amount of issues, so it is important to
focus on what is likely matter most > the key drivers for change.

The PESTEL framework

Categorises environmental factors into key types and highlights sic environmental factors in particular:
political, economic, social, technological, ecological and legal. This range of factor underlines that the
environment is not just about economic forces, there is an important non-market environment. Often
are those six factors interconnected.

 Politics: highlights the role of the state and other political forces. The state is often important
as a direct economic actor, for instance as potential customer, supplier or owner of groups or
concerned media. But there are also influences from various political movements, campaign
groups or concerned media.
o Defence companies: state is often the owner and key customer, which are also
exposed to political campaigning against the arms trade. (wapenhandel)
o Food companies: mostly privately owned and operate in private-sector markets but
are still exposed to great political pressures from campaigners for fair trade, labour
rights and healthy eating.

 Economics: refers to macro-economic factors such as exchange rates, business cycles and
differential economic growth rates around the world. It is important for a business to
understand how its markets are affected by the prosperity (welvaart) of the economy as a
whole. Managers should have a view on how changing exchange rates may affect viability in
export markets and vulnerability (kwetsbaarheid) to imports.

 Social influences: include changing cultures and demographics. For example, the ageing
populations in many Western societies create opportunities and threats for both private and
public sectors. Changing cultural attitudes can also raise strategic challenges.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Lotte0809. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $3.21. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

53340 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$3.21
  • (0)
Add to cart
Added