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C O N T E M P O R A R Y D E V E L O P M E N T S I N B U S I N E S S A N D M A N A G E M E N T

Intro to the Business Environment

Topics

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

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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

InputsLandMaterials and equipmentHuman resourcesTechnologyFinancial resources

OutputsGoods or servicesIdeas and information

Transformation

Feedback

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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.

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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

Technological-Spending on research by government and industry-Innovative developments-Rate of technology transfer-Technology infrastructure

Economic-Wage rates, GDP, Interest rates-Inflation, Unemployment-International economic trends-Business cycles (national and foreign)

Legal-Financial regulation-Product safety legislation-Health and Safety-Employment law

Socio-cultural-Demographics, Religious beliefs-Income distribution, Lifestyle-Attitudes to work and leisure-Attitudes to education and consumerism

Eco-environmental-Legislation on environmental factors-Changing attitudes to the environment-Energy consumption-Waste disposal

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Group Exercise

� Form groups of 4 or 5 people� Choose a company that you want to know well� Consider previous assignments you’ve done� Consider companies you or your parents work(ed) for� Consider companies you really like� Each group should choose a different company� Can be from any country� Create a PESTLE analysis for that company.

Homework

� Read about the financial environment.