Chapter Three PDF

09/12/2024, 13:52 OneNote Chapter three Thursday 5 December 2024 12:46 p.m. Content revised for exam as per the revision lecture. - look at slide pre revision P121 What is the...

09/12/2024, 13:52 OneNote Chapter three Thursday 5 December 2024 12:46 p.m. Content revised for exam as per the revision lecture. - look at slide pre revision P121 What is the global business environment? All factors relevant to an organisation which lie outside its formal boundary (uncontrollable but not an excuse for poor performance) Environmental scanning? Process that systematically surveys and interprets relevant stat to identify external opportunities and threats that impact future decisions Components include; 1. Trends 2. Competition 3. Technology 4. Customers 5. Labour supply Define and explain the impact of globalisation? 📌 The increasing and deepening interactions and connections between individuals, groups and organisations across the world - Movement and Change BRICS European Union Hofstede’s cultural dimensions Power distance Masculinity vs femininity Uncertainty avoidance Long vs short term orientation Indulgence vs restraint The global macro environment influences 1. Political-legal context Shaped by activities of governments at national and international levels Also by type of gov and their national and international policy’s 2. economic context Individual economies - recessions/boom Economic policy’s and trade 3. Technological context Creates new products/services Creates new production techniques Creates new ways of communicating and managing info and knowledge flow 4. Social-ethical context Demographics Attitudes/behaviours of society Ethics and corporate social responsibility The global competitve environment Organisation -> new entrants, buyers, substitutes, suppliers, rivals global competitve environment influences Cost leadership strategy (low-cost structures to be price competitve) Differentiation strategy (offer superior quality) Focus strategy (target market / competitive edges) What shapes the competitve environment? 1. Competitve rivalry 2. Buyer power 3. Threat of substitution 4. Supplier power Role of culture in international business? 📌 Culture - a system of values and norms that are shared among a group of people and that when taken together constitute a particular design for living Effects the way things are done - shapes management practices and approaches in different counties. Characteristics of unfavourable competitive environments? high growth industries with few competitors High barriers to entry Few substitutes Suppliers/customers with little power over organisation Characteristics of unfavourable competitive environments? Many competitors in low-growth industry Few barriers to entry Many substitutes Customers/suppliers with high power over organisation https://ulcampus-my.sharepoint.com/:o:/r/personal/24430455_studentmail_ul_ie/_layouts/15/Doc.aspx?sourcedoc=%7B159535c2-d156-49e1-b289-b4f85e2ae4e… 1/2