Contemporary Development in Business Management: Business Environments
Learning Outcomes
Analyze business environments in terms of transformation systems and internal and external environments
Identify the most relevant elements of the business environments using PESTLE analysis and Porter’s five forces model
Discuss the classical, human relations and systems approaches to organizations
Describe and compare the various structures that may be used within organizations.
The business as a transformation system
Transformation Process: Businesses utilize the inputs in order to produce the outputs.
Types of Environments
A simple/static environment is the easiest to analyse. A detailed, systematic, historical analysis is probably sufficient in order to understand it.
University of Sunderland
Contemporary Developments In Business Management
Unit 1: Introduction To The Business Environment
In a dynamic environment, all aspects of the environment are subject to change. When changes are rapid or sudden, such environments are referred to as turbulent.
Complex environments are becoming more and more common in modern times. Technology, markets, politics, etc. are becoming more difficult and more involved
The Organization’s Environment
PESTEL Factors
PESTEL Analysis
Political
Economic
Socio - Cultural
Technological
Environmental
Legal
Political Environment
Government policy affects the whole economy and governments are responsible for enforcing and creating a stable framework in which businesses can operate in. The quality of government policy is important in providing the right Physical infrastructure (transport etc), Social infrastructure (education, welfare net etc) and Market infrastructure (enforceable contracts)
Businesses must forecast the likely impact of a change in the political environment.
Inter-country relationships/attitudes
Government leadership
Trading Policies
Economic Environment
Socio/Cultural Environment
Technological
Analyze business environments in terms of transformation systems and internal and external environments
Identify the most relevant elements of the business environments using PESTLE analysis and Porter’s five forces model
Discuss the classical, human relations and systems approaches to organizations
Describe and compare the various structures that may be used within organizations.
The business as a transformation system
Transformation Process: Businesses utilize the inputs in order to produce the outputs.
Types of Environments
A simple/static environment is the easiest to analyse. A detailed, systematic, historical analysis is probably sufficient in order to understand it.
University of Sunderland
Contemporary Developments In Business Management
Unit 1: Introduction To The Business Environment
In a dynamic environment, all aspects of the environment are subject to change. When changes are rapid or sudden, such environments are referred to as turbulent.
Complex environments are becoming more and more common in modern times. Technology, markets, politics, etc. are becoming more difficult and more involved
The Organization’s Environment
PESTEL Factors
PESTEL Analysis
Political
Economic
Socio - Cultural
Technological
Environmental
Legal
Political Environment
Government policy affects the whole economy and governments are responsible for enforcing and creating a stable framework in which businesses can operate in. The quality of government policy is important in providing the right Physical infrastructure (transport etc), Social infrastructure (education, welfare net etc) and Market infrastructure (enforceable contracts)
Businesses must forecast the likely impact of a change in the political environment.
Inter-country relationships/attitudes
Government leadership
Trading Policies
Economic Environment
Socio/Cultural Environment
Technological