Chapter 2 - Business Environment Flashcards
(9 cards)
Macro Environment (PESTEL)
- Political
- Economic
- Social
- Technological
- Environmental
- Legal
What is an analysis of statistics on birth and death rates, age structures of people and ethnic groups within a community?
Demographic
Changes in technology
- Delayering (reduce management level)
- Downsizing (reducing operational workers)
- Outsourcing
Employment protection
- Wrongful dismissal or unfair dismissal
- Redundancy
- Compensation
Wrongful dismissal Vs Unfair dismissal
- Wrongful dismissal is dismissal that breach the contract of employment
- The legal concept of unfair dismissal gives protection to the employee against arbitrary dismissal , that is dismissal without good reason.
Three circumstances that is not entitled to compensation
-The employer has made an offer of suitable alternative employment and the employee has unreasonably rejected it
-The employee is pensionable age or over , or has less than two years’ continuous employment
-The employee’s conduct merits dismissal without notice
Five forces
-
New entrant
- Economies of scale
- Capital requirements
- Access to distribution -
Competitor
-Lack of differentiation
-High fixed cost
-Slow growth in market -
Supplier
- Switching costs are high
- Possibility of integration forward
- Few suppliers
- Customer not significant -
Customer
-Alternative sources of supply
-Threat to backward
- Low switching costs -
Substitute
-Can be replaced for customer’s needs and wants
Value chain
-
Primary activities
-Inbound logistics
-Operations
-Outbound logistics
-Marketing
-After sale services -
Support / Secondary activities
-Procurement
-Technology
-Human Resources
-Firm infrastructure
SWOT Analysis
Strength and Weakness (SW)
Internal Analysis
-value chain
-resources and competence
Opportunity and Threat (OT)
External Environment
-Macro environment
-Five Forces
-Stakeholders
