The Changing Business Environment 1

realise value, hidden within

THE CHANGING BUSINESS ENVIRONMENT

L5 Pathways Business Management

1. The External Environment


Market

Capability

Performance

Change

LEVEL 3 TO LEVEL 5Business Environment

Business Resources

Introduction to Marketing

Human Resource Management

Business Communications

Recruitment & Selection

Business Operations

Managing Change

Developing Teams

Leadership & the Organisation

Communications in Organisations

Financial Awareness

Responding to Changing Business Environment

Business Models & Growing the Organisation

Business Development

Effective Decision Making

Customer Management

Risk Management and Organisations


LEARNING OUTCOMES

Learning Outcomes Assessment Criteria

1. Evaluate and analyse the factors that influence business and the responses that can be deployed to manage these factors

1.1 Identify and make use of different approaches to understanding the macro and micro environments for business

1.2 Review business resources and external factors and trends to identify where business performance could be positively or negatively affected 1.3 Recommend responses to external factors and trends

2. Appreciate how an integrated approach to understanding the business context and decision making can support business development.

2.1 Identify and prioritise organisational changes to individual businesses that would counteract negative or support positive business environmental factors and trends

2.2 Use case examples to illustrate the impact of responding to business environmental factors and trends

2.3 Evaluate the role of management in responding to a changing business environment

3. Investigate the changing relationship between the private and public sector.

3.1 Use scenarios and models to illustrate changes in relationships

3.2. Use SMART objectives3.3 Identify opportunities that may arise due to changes in relationships


THE MISSION


BALANCED SCORECARD: INTEGRATION


WHAT IF?Covid-19: Regulatory / Government Actions / Economic issues

SpaceX: Technology advances / market changes

#BlackLivesMatter: Social unrest and activism

Brexit: Economic implications within and without the EU

Hong Kong - Changing the Governance: Same!


WHAT IF?


ANY CASES:Pick A Business:

What is the current status?

What are the Main External Factors which can / will impact it?

What are the possible impacts?

What do they mean for the Business?

What can we do about them?


WHAT TO FOCUS ON?


WHAT TO FOCUS ON?


WhatHappened?

Whatdoesittake?

realise value, hidden withinEfficiencies!


ORGANISATION CONTEXT

TheMacroEnvironment

TheMicroEnvironment

TheInternalEnvironment

Poli3cal

Economic

Social

Technological

Environmental

Legal

Compe3tors

Suppliers

Customers

Intermediaries

Stakeholders


WHAT ELSE IS HAPPENING?Brexit

Climate Change

The Big Short (See the

Movie)

Technology

A.I.

Trump!

And to Whom?


EXTERNAL / MACRO ENVIRONMENT:

PESTEL ANALYSIS


WHAT’S HAPPENING WITH BREXIT?


GLOBAL MARKETPLACE


TECHNOLOGY - ANYTHING NOT CHANGING?


WAKE-UP!Online Sales (Actual & Estimated) ($Bn)

0

3000

6000

9000

12000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013B2C Sales B2B Sales Irish Natioanl Income


CLIMATE …

http://www.scooterelettrico.me/en/


ARE YOU REPLACEABLE?


MORE RULES …


TITLE TEXT

Body Level One Body Level Two

Body Level Three

• Body Level Four

• Body Level Five

Whathavewelearned?


ANALYSING THE ENVIRONMENT

Political

Economic

Social

Environment

Technology Legal

External Environment


WHAT’S GOING ON IN THE MICRO-

MichaelPorter’s5forcesmodel


BUILDING UNDERSTANDING

Political

Economic

Social

Environment

Technology Legal

External Environment

Industry Rivalry

Suppliers Power

Buyers Power

Potential Entrants

Potential Substitute


J.C. PENNEY & MARVIN!Founded April 14, 1902 (116 years ago)

Kemmerer, Wyoming, U.S.Founders James Cash Penney

William Henry McManusHeadquarters 6501 Legacy Drive, Plano, Texas, U.S.

Number of locations

864[1] (Q3 2018)

Area served United States

Key people Ronald Tysoe(Chairman)Jill SoltauProducts • Clothing cosmetics electronics

footwear furniture housewares jewelry appliancesRevenue $12.506 billion (FY2018)

Operating income $282 million (FY2018)

Net income $116 million (FY2018)

Total assets $8.413 billion (FY2018)

Total equity $1.379 billion (FY2018)

Number of employees

98,000 (2017)]WikiSource

https://en.wikipedia.org/wiki/Kemmerer,_Wyoming

https://en.wikipedia.org/wiki/James_Cash_Penney

https://en.wikipedia.org/wiki/Plano,_Texas

https://en.wikipedia.org/wiki/Texas

https://en.wikipedia.org/wiki/United_States

https://en.wikipedia.org/wiki/Fiscal_Year

https://en.wikipedia.org/wiki/Earnings_before_interest_and_taxes

https://en.wikipedia.org/wiki/Net_income

https://en.wikipedia.org/wiki/Asset

https://en.wikipedia.org/wiki/Equity_(finance)

https://en.wikipedia.org/wiki/J._C._Penney


SWOT ANALYSIS (OLD RELIABLE)


SWOT ANALYSIS


PREFER TOWS ANALYSIS

Weaknesses Strengths

Threats Opportunities

Key Requirements

Distinctive Competencies

Find Differential Advantage


CONCLUSIONS

Organisations operate in the business environment

Managers must understand the relationship with the environment for long-term business survival!

The Business environment is made up of the Macro & Micro/Task (Competitive)

environments

PESTEL provides a simple, useful and powerful tool to understand the external

environment.

Understanding the nature and importance of competition and competitive advantage

are key for business survival

TOWS – provides a simple, useful and powerful tool to understand and align the

internal environment with the realities of the external.

Combined the above tools inform managers on what decisions need to be made and

the actions required.

The Changing Business Environment 1

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