Business Models and Environmental Trends

Study Notes

Models are simplified representations of reality that provide a comprehensive overview of a specific topic.
They offer a specific perspective on a topic and structure it in a way that is easier to understand.

Businesses are embedded in various environmental spheres, each influencing their operations and affecting each other.
Companies must adapt to these changing environments to thrive.

Changing age structures with a growing elderly population and new customer groups emerging.
Feminization trend, with women becoming a significant target group for companies.
Increased emphasis on quality of life, time saving, new experiences, individualization, and multi-optionality in consumer preferences.

Businesses are expected to handle natural resources responsibly, facing pressure from stakeholders.
Sustainable energy sources like solar, wind, biomass, and hydro are becoming more widely adopted.
Cost savings through energy efficiency and reducing environmental impact are important business goals.

Technology streamlines workflows, saves time, and creates value for customers through optimization and innovation.
Automation and rationalization involve using technology to replace labor with capital, improving efficiency.
Digitalization and the Internet of Things (IoT) enable data collection, processing, and connection between physical products and services, creating hybrid possibilities.

Businesses operate within national economies, influencing and being influenced by economic factors.
Competitive situations range from competition with many suppliers and buyers to monopolies with one supplier and many buyers.
Economic cycles influence business performance, with upswings characterized by increased demand, production, and employment, while downswings involve overutilization, price increases, and economic downturn.
GDP as a measure of national economic output reflects economic health and influences business operations.
Currency exchange rates impact competitiveness, with depreciation stimulating exports and appreciation making imports cheaper.

Stakeholder groups, including capital providers, customers, employees, the public, NGOs, the state, suppliers, and competitors, have various expectations and demands on companies.
Each stakeholder group plays a vital role in the company's success and requires careful consideration.

Shareholder Value Approach: Focuses primarily on maximizing profit.
Strategic Stakeholder Value Approach: Prioritizes both profit and the needs of important stakeholder groups.
Normative-Critical Stakeholder Concept: Emphasizes profit, ethics, and social responsibility, considering the impact on humanity, the environment, and animals.

This tool analyzes the influence and importance of stakeholders on a company, aiding in prioritizing stakeholder engagement.

Companies establish codes of conduct to guide employee behavior in dealings with customers, suppliers, society, and the environment.
These codes promote ethical conduct and provide guidance for handling challenging situations.

Long-term survival and competitive advantage require a well-defined strategy based on the company's mission statement and a thorough analysis of its environment.

Identifying strengths and weaknesses, understanding the company's mission statement, and conducting an environmental analysis to identify opportunities and threats are crucial for strategic planning.

Growth strategy using Ansoff matrix:
- Market Penetration: Increasing sales of existing products in existing markets.
- Market Development: Selling existing products in new markets.
- Product Development: Developing new products in existing markets.
- Diversification: Developing new products in new markets.

Differentiation: Creating unique products that offer added value to customers, increasing their willingness to pay, and ensuring competitive advantage.
Cost Leadership: Becoming the lowest-cost producer by identifying and eliminating cost drivers in purchasing, production, sales, and service, enabling price competitiveness.
Focus: Targeting specific market niches by concentrating on a particular customer group, product segment, or geographic area, achieving superiority within that niche.

A visual representation of success, profit, and loss, depicting the relationship between company performance and size, highlighting the optimal position for a company in the “sweet spot” with high profit and success.

A tool for evaluating products and allocating resources strategically.
Categorizes products into four categories based on market growth and relative market share:
- Question Marks: Require investment and brand building.
- Stars: Need continued investment and brand management.
- Cash Cows: Generate profit and can be used to fund other products.
- Poor Dogs: May require discontinuation or quick sales stoppage.

A model representing the stages a product goes through from development to discontinuation, impacting profitability and strategic decisions throughout its life.
The five stages include:
- Research & Development: Product ideation and creation.
- Introduction: Initial launch and market entry.
- Growth: Rapid sales increase and market penetration.
- Maturity: Sales stabilize and reach peak levels.
- Decline: Sales decrease as competition intensifies and consumer interest wanes.