4C Immensee BWL Lehrbuchzsmf PDF Business Administration Textbook

# Chapter A ## Models: simplifying complex issues - Simplified image of reality - Comprehensive overview of a specific topic - Specific perspective on a topic - Structuring a topic # Chapter B ## Environmental spheres - The context in which a business is embedded. Every environmental sphere af...

# Chapter A ## Models: simplifying complex issues - Simplified image of reality - Comprehensive overview of a specific topic - Specific perspective on a topic - Structuring a topic # Chapter B ## Environmental spheres - The context in which a business is embedded. Every environmental sphere affects the business in some way. Environmental spheres also influence each other. The company must adapt. - **Society**: Meeting customer needs and government regulations - Value change & trends: - Trends - Companies want to sell things that people want. - Value change - Shift in individual and societal values and norms. - **Intensity** - *Megatrend* (fast food) - *Fashion trend* (dungarees and football cards) - *Hype* (Tamagotchi, fidget spinners) - *Time* ## Societal Trends - **Changing age structure (demographics)**: People are living longer and new customer groups are emerging. - **Trend towards feminization**: Women are becoming a promising target group for companies. - **Trend towards a better quality of life** - **Trend towards time saving** - **Trend towards new things** - **Trend towards individualization** - **Trend towards multi-optionality**: Customers want more choice ## Nature - The state and authorities as well as the public and consumers expect companies to handle nature responsibly. - Today, solar energy, wind energy, biomass, hydroelectric power and more are used as sources of energy. - Companies save costs by using energy efficiently and reducing the impact on nature. ## Technology - Technology helps companies simplify workflows, save time, and create added value for customers in existing goods (optimization) or completely new products and services (innovation). - **1) Automation & Rationalization** - **Automation**: Replacing the production factor labor with capital (using robots/machines). - **Rationalization**: All measures that help save costs and time and lead to the achievement of maximum performance. - **2) Digitalization & Internet of Things** - **Digitalization**: The acquisition, processing and storage of analog information(temperature in a refrigerated truck) on a digital storage medium. - **Internet of Things**: A further stage of digitalization (e.g. alarm in the refrigerated truck when the temperature drops). Makes physical products and new services merge into hybrid possibilities. ## Economy - A business is part of a national economy. It is affected by it and vice versa. - **1) Competitive situation** - **Competition**: Many suppliers, many buyers. - **Supply monopoly**: One supplier, many buyers. - **2) Economic situation** - *Upswing*: Demand is rising, production capacity is utilized, more employment, boom. - *Downswing*: Overutilization of production capacity, price level rises, demand falls, layoffs, economic downturn. - **3) GDP**: The sum of all value added that is created within a national economy within one year. It serves to compensate the factors of production (e.g. wages for work). In the boom phase of the economic cycle, GDP increases. - **4) Exchange rates** - **Depreciation**: Rising exchange rate of the domestic currency - stimulates exports. - **Appreciation**: Falling exchange rate of the domestic currency - cheaper imports and therefore reduced competitiveness of domestic companies. ## Stakeholders - Stakeholder groups are individuals, groups or organizations that have different expectations and demands on a company. In turn, the company places demands on these stakeholder groups. - **Capital providers**: Provide the company with money to make investments. - **Customers**: Buy the company's products and services. - **Employees**: Contribute significantly to the creation of products and services through their work. - **Public/NGOs**: Residents of a county, organizations, and the media that monitor a company’s actions and scrutinize it. Every non-profit organization is an NGO. They have different focuses, such as consumer protection, environmental protection, human rights or species conservation. Every company has to deal with the criticism of the public. - **State**: The federal government, the states, and the municipalities. The state demands taxes, which are used to finance the transportation infrastructure and the legal system. Companies want good transport infrastructure so their employees spend less time in traffic jams and their products can be transported faster. A good judicial system benefits a company through incorruptible judges and clear laws, allowing them to assert their rights. - **Suppliers**: Deliver the necessary raw materials, semi-finished products or services needed to produce the company's goods. Companies and suppliers are interdependent. Prices can be determined by both sides. - **Competition**: Sell the same or similar products or services on the market and have the same stakeholder groups.. Every company monitors its competitors’ actions to improve its own products and services. ## Stakeholder Concepts - **Shareholder Value Approach**: Profit is paramount. - **Strategic Stakeholder Value Approach**: - 1) Profit is important - 2) Needs of important stakeholder groups. - **Normative-Critical Stakeholder Concept**: - 1) Profit. - 2) Ethics (humanity, environment, animals.) ## Stakeholder Relevance Matrix - **Influence of stakeholders on the company** - very influential to irrelevant. - **Importance of stakeholders for the company** - very important to irrelevant. ## Code of Conduct - Sets rules for companies and their employees in dealing with customers, suppliers, society, and the environment - rules of conduct. - Helps employees to cope with ethical challenges. # Chapter C ## Strategy - The long-term survival of the company - competitive advantage through the definition of a strategy. - Based on the company’s mission statement and requires an analysis of the company. ## Company Analysis - **Strengths & weaknesses** - **Company Mission Statement** - **Environmental Analysis** - Opportunities & threats. - **Company Strategy** - defines long-term goals. - **Company Mission Statement** - defines long-term goals. ## Types of Strategies & Business Plan - **Growth strategy based on the Ansoff matrix** - **Products**: Current and new - **Markets**: Current and new - **New** - **Market Development**: New market with existing products. - **Product Development**: New product with existing market - **Current** - **Market Penetration**: Increasing sales of existing products in the existing market. - **Diversification**: New product and new market. - **Growth** - **Market Penetration**: Increasing sales figures of current products in the existing market. - **Market Development**: Selling existing products in a new market. - **Product Development**: Development of new products in existing markets. - **Diversification**: Development of new products in new markets. ## Competitive Strategy According to Porter - **Consistently differentiate yourself from the competition** and thus protect yourself from price pressure. - **Offer a product that offers added value over alternative products** to increase customer willingness to pay. - **Strategic Objective** - **Be better than the competition** - your product has uniqueness. - **Strategic Advantage** - **Cost Leadership**: Being the lowest-cost producer - Branch restriction of segments. - **Differentiation**: Creating unique products- - Concentration on niches. - **Growth** - **Backwards & forwards integration**: vertical differentiation. - **Horizontal differentiation**: - **Lateral differentiation**. - **Cost leadership**: Creating cost advantages, so products can be sold at a lower price and sales can be increased or the same price and higher margins can be achieved. - **Be cheaper than the competition**. - **Identify and eliminate cost drivers in purchasing, production, sales, and service.** - **Only differentiate yourself in a particular market niche or achieve cost leadership**. - **Focus more than the competition**. - **A specific customer group, a segment of the product group or a geographically limited market is considered as the market niche.** ## U-Curve - **Profit** - **Success** - **Loss** - **Starbucks, Mercedes, Gucci, Apple, Audi, Aldi/Lidl, M-Budget, Dacia, Dosenbach, H&M, Chicore, VW, Vogel, Average, k** - **ROI = Return on Investment** - **You would like to be in the top spot as a company.** - **„Second place is the first loser“** ## Portfolio Analysis - **Investment strategy**: - Products should be promoted to create a sufficiently large market share. - **Disinvestment strategy**: - Poor prospects for profits. - **Disinvestment strategy**: - Withdraw from the market. - **Markent Growth** - Low to High - **Relative Market Share** - Low to High - **Question Marks** - **Stars** - **Poor Dogs** - **Cash Cows** - **Investment strategy**: Continue to invest in the product. - **Harvesting strategy**: No longer invest and generate profits with the current product so you can finance other products. ## Product Lifecycle - **Sales/Profit/Losses** - Up to down - **Time** - 0 to 8 - **Research & Development, Introduction, Growth, Maturity, Decline** - **Development, Market introduction, growth, maturity, decline, discontinuation**. - **Question Marks**: - Investment - Advertising - Competition - Brand building. - **Stars**: - Investment - Advertising - Competition - Brand creation - We are better! - **Cash Cows**: - Harvest strategy - Advertising. - **Poor Dogs**: - Discontinuation - Quick sales stoppage - 2 years of warranty.