Management Extra Business Environment

Management Extra

BUSINESS

ENVIRONMENT

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AMSTERDAM ● BOSTON ● HEIDELBERG ● LONDON ● NEW YORK ● OXFORD ● PARIS ●

SAN DIEGO ● SAN FRANCISCO ● SINGAPORE ● SYDNEY ● TOKYO

Management Extra

BUSINESS

ENVIRONMENT

Elsevier Butterworth-Heinemann

Linacre House, Jordan Hill, Oxford OX2 8DP

30 Corporate Drive, Burlington, MA 01803

First published 2005

© 2005 Wordwide Learning Limited adapted by Elearn Limited

Published by Elsevier Ltd

All rights reserved

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British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloguing in Publication Data

A catalogue record for this book is available from the Library of Congress

ISBN 0 7506 6679 X

Printed and bound in Italy

For information on all Elsevier Butterworth-Heinemann publications

visit our website at www.books.elsevier.com

Contents

List of activities vii

List of figures viii

List of tables ix

Series preface xi

Introduction: uncover the challenges facing your organisation xiii

1 The organisation in context 1

The nature of organisations 1

The strategy process 7

Recap 17

More @ 18

2 The organisational landscape 20

The internal environment: culture and structure 21

Internal capabilities 29

The balanced scorecard 38

Portfolio analysis 41

Recap 46

More @ 47

3 The key players 48

Stakeholders 48

Market analysis 54

Industry analysis 67

Recap 72

More @ 74

4 The macro environment 75

The macro environment: politics 76

The macro environment: economics 80

The macro environment: social matters 84

The macro environment: technology 90

The macro environment: legislation 96

The macro environment: eco-enviromental factors 101

PESTLE analysis 105

Recap 108

More @ 109

5 SWOT analysis 111

The internal and external environment: SWOT analysis 111

Recap 114

More @ 114

References 115

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Activities

Activity 1 Focus on your organisation 6

Activity 2 Strategy 14

Activity 3 Assess your organisation’s culture and structure 26

Activity 4 Structural change 27

Activity 5 The internal environment 33

Activity 6 The balanced scorecard 40

Activity 7 Portfolio analysis 44

Activity 8 Stakeholder analysis 51

Activity 9 The market economy 56

Activity 10 Market research 61

Activity 11 The Ansoff matrix 65

Activity 12 Industry analysis 70

Activity 13 Politics and economics 83

Activity 14 Social trends 88

Activity 15 The impact of technology 92

Activity 16 Legislation 99

Activity 17 An eco-environmental audit 103

Activity 18 PESTLE analysis 107

Activity 19 SWOT analysis 113

Figures

1.1 A basic transformation process 1

1.2 The context in which the organisation works 2

1.3 The strategy process 8

1.4 A hierarchy of goals 13

2.1 The balanced scorecard 39

2.2 The BCG matrix 43

3.1 Stakeholders 49

3.2 Supply and demand 54

3.3 E-survey 61

3.4 Porter’s Five Force model 68

Tables

1.1 The influence of operating context on organisations 4

4.1 Macro-economic concepts 81

4.2 Good and bad in new technology 91

4.3 Key UK employment laws 96

4.4 Key consumer laws 97

4.5 Key Corporate laws 99

4.6 PESTLE factors 105

4.7 Example of PESTLE factors at work 106

5.1 Example of a SWOT analysis 112

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Series preface

‘I hear I forget

I see I remember

I do I understand’

Galileo

Management Extra is designed to help you put ideas into practice.

Each book in the series is full of thought-provoking ideas, examples

and theories to help you understand the key management concepts

of our time. There are also activities to help you see how the

concepts work in practice.

The text and activities are organised into bite-sized themes or topics.

You may want to review a theme at a time, concentrate on gaining

understanding through the text or focus on the activities whilst

dipping into the text for reference.

The activities are varied. Some are work-based, asking you to

consider changing, developing and extending your current practice.

Others ask you to reflect on new ideas, check your understanding or

assess the application of concepts in different contexts. The

activities will give you a valuable opportunity to practise various

techniques in a safe environment.

And, finally, exploring and sharing your ideas with others can be

very valuable in making the most of this resource.

More information on using this book as part of a course or

programme of learning is available on the Management Extra

website.

www.managementextra.co.uk

xi

Series preface

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