pest
Business Environment
ABUS001-3-1
The Nature of the Business
Environment
Chapter 1
The nature of the business environment? © The McGraw-Hill Companies 2012
2
Topics & Structure of Lesson
Business Environment
•
•
•
•
What does the business environment comprise?
Use of PEST analysis
Influences and drivers for change
Glocalization
Title of Slides
Learning Outcomes
At the end of this lesson, you should:
Understand the nature of the business environment which includes ;
• What does the business environment comprise? • Use of PEST analysis
• Influences and drivers of change
• Glocalization
Title of Slides
OPENING
QUESTION
WHERE DOES YOUR
FUTURE PROSPERITY LIE?
• If you had £1million to invest, which business sectors would you invest in to give a good return over 10 years?
• Would you invest in the sectors that did best over the last 10 years (easy to calculate but may not be a good prediction for the future!)
• Or in the sectors that are likely to do best in the next 10 years? (much harder to predict!)
• Looking back is easy, but predicting the next ten years is much more difficult.
Title of Slides
5
• What opportunities will foreseeable changes in the business environment present you with?
• How will lots of individual changes combine with one another to influence the types of goods and services that we want to buy and the ability of firms to supply them. Title of Slides
• Successful companies have often been those who understand their business environment and have invested in growth areas, while cutting back in areas which are most likely to go into decline.
• Being first to market when trends are changing can be much more profitable than simply reacting to a market trend.
However, predicting future trends can be very difficult and can involve a lot of risk.
Title of Slides
Example
• The Hoover company successfully foresaw that with more women going out to
ABUS001-3-1
The Nature of the Business
Environment
Chapter 1
The nature of the business environment? © The McGraw-Hill Companies 2012
2
Topics & Structure of Lesson
Business Environment
•
•
•
•
What does the business environment comprise?
Use of PEST analysis
Influences and drivers for change
Glocalization
Title of Slides
Learning Outcomes
At the end of this lesson, you should:
Understand the nature of the business environment which includes ;
• What does the business environment comprise? • Use of PEST analysis
• Influences and drivers of change
• Glocalization
Title of Slides
OPENING
QUESTION
WHERE DOES YOUR
FUTURE PROSPERITY LIE?
• If you had £1million to invest, which business sectors would you invest in to give a good return over 10 years?
• Would you invest in the sectors that did best over the last 10 years (easy to calculate but may not be a good prediction for the future!)
• Or in the sectors that are likely to do best in the next 10 years? (much harder to predict!)
• Looking back is easy, but predicting the next ten years is much more difficult.
Title of Slides
5
• What opportunities will foreseeable changes in the business environment present you with?
• How will lots of individual changes combine with one another to influence the types of goods and services that we want to buy and the ability of firms to supply them. Title of Slides
• Successful companies have often been those who understand their business environment and have invested in growth areas, while cutting back in areas which are most likely to go into decline.
• Being first to market when trends are changing can be much more profitable than simply reacting to a market trend.
However, predicting future trends can be very difficult and can involve a lot of risk.
Title of Slides
Example
• The Hoover company successfully foresaw that with more women going out to