WK2-Part-A-Introduction-To-Business-Environment PDF

Introduction to Business Environment Welcome to Week 2 of our Business Course! This week, we'll explore the fascinating world of business environments. We'll learn how different factors shape businesses and influence their success. Week 1-2 FY021 Introduction to Business Buckingham New University i...

Introduction to Business Environment Welcome to Week 2 of our Business Course! This week, we'll explore the fascinating world of business environments. We'll learn how different factors shape businesses and influence their success. Week 1-2 FY021 Introduction to Business Buckingham New University in partnership with LSCI Academic Year 2024-25 Foundation Year Level 3 Key Learning Outcomes Understand the Learn how to conduct Explore real-world Gain insights into the internal and external a SWOT/ PESTLE case studies of how challenges and factors that shape a analysis to assess the businesses adapt to opportunities business business their environment presented by environment environment globalisation Discover the importance of corporate social responsibility and sustainability in the modern business landscape What is a Business Environment? 1 Definition The business environment includes all the factors that affect a company's operations. 2 Importance Understanding the business environment helps companies make better decisions and plan for success. 3 Dynamic Nature The business environment is always changing, requiring companies to adapt quickly. Internal Factors in Business Company Culture Resources Management The shared values and Financial, human, and Structure beliefs that shape physical assets The way a company is employee behaviour available to the organised and how and decision-making. company for its decisions are made. operations. External Factors in Business Economic Factors Interest rates, inflation, and economic growth affect business operations and decisions. Political Factors Government policies and regulations can impact how businesses operate in a country. Social Factors Changes in society, such as demographics and consumer preferences, influence business strategies. Technological Factors Advancements in technology can create new opportunities or challenges for businesses. PESTLE Analysis The PESTLE analysis is a framework used to analyze the external macro-environment of an organization. Political 1 Government policies, trade regulations, and political stability. Economic 2 Economic growth, inflation rates, and exchange rates. Social 3 Demographics, cultural trends, and consumer behaviour. Technological 4 Innovations, automation, and digital transformation. Legal 5 Laws affecting business operations, employment, and consumer protection. Environmental 6 Climate change, sustainability practices, and environmental regulations. Case Study: Tesco's Business Environment Internal Factors External Factors Adaptation Tesco's strong brand, Competition from Tesco's response extensive store discount retailers, includes expanding network, and efficient changing consumer online services and supply chain preferences towards focusing on management. online shopping. sustainability initiatives. Quiz: Business Environment Basics 1 Question 1 Which of the following is an internal factor affecting a business? 2 Options A) Government policies B) Company culture C) Economic growth D) Technological advancements Introduction to Globalisation Definition Globalisation is the increasing interconnectedness of businesses, economies, and cultures worldwide. Drivers Technology, trade agreements, and improved transportation have accelerated globalisation. Impact Globalisation affects businesses by creating new opportunities and challenges in the global market. Benefits of Globalisation for Business Market Expansion Cost Reduction Innovation Access to new Opportunity to source Exposure to new ideas customers and markets materials and labour and technologies from around the world. from cheaper locations. different countries. Challenges of Globalisation for Business 1 Cultural Differences Adapting products and marketing strategies to suit different cultural preferences. 2 Increased Competition Facing competition from international companies in local markets. 3 Complex Regulations Navigating different legal and regulatory environments in various countries. Case Study: McDonald's Global Strategy 1 Global Presence McDonald's operates in over 100 countries, adapting to local tastes. 2 Local Adaptation The company offers unique menu items in different countries, like McSpicy Paneer in India. 3 Global Standards McDonald's maintains consistent quality and service standards worldwide. Quiz: Globalisation in Business 1 Question Which of these is NOT a benefit of globalisation for businesses? 2 Options A) Market expansion B) Cost reduction C) Simplified regulations D) Innovation Introduction to Corporate Social Responsibility (CSR) Definition CSR is a company's commitment to manage its social and environmental impacts responsibly. Importance CSR helps build trust with customers, employees, and communities. Areas of Focus CSR can include environmental sustainability, ethical labour practices, and community involvement. Benefits of CSR for Businesses Enhanced Employee Long-term Reputation Satisfaction Sustainability CSR can improve a CSR initiatives can CSR practices can lead company's image and boost employee morale to more sustainable attract socially and attract top talent. and efficient business conscious customers. operations. Implementing CSR in Business 1 2 3 4 Assess Set Goals Develop Measure Current Establish clear, Initiatives and Report Impact measurable CSR Create Track progress objectives programs and and Evaluate the aligned with company's policies to communicate business achieve CSR results to social and strategy. environmental goals. stakeholders. effects. Case Study: Patagonia's CSR Efforts Environmental Focus 1 Patagonia uses recycled materials and promotes repair 2 Fair Labour and reuse of its products. The company ensures fair wages and safe working Activism 3 conditions in its supply chain. Patagonia actively supports environmental causes and encourages customer involvement. Quiz: Corporate Social Responsibility 1 Question Which of these is NOT a typical benefit of CSR for businesses? 2 Options A) Enhanced reputation B) Immediate profit increase C) Employee satisfaction D) Long-term sustainability The Role of Technology in Business Environment Digital Transformation Technology is changing how businesses operate and interact with customers. Cloud Computing Cloud services enable flexible and scalable business operations. Artificial Intelligence AI and machine learning are revolutionising business processes and decision-making. Ethical Considerations in Business Transparency Being open and honest about business practices and decisions. Fair Treatment Ensuring equal opportunities and fair compensation for all employees. Environmental Responsibility Minimising negative impacts on the environment and promoting sustainability. Customer Privacy Protecting customer data and respecting their privacy rights. The Impact of COVID-19 on Business Environment Remote Work Supply Chain Disruption Many businesses shifted to remote Global supply chains were work, changing traditional office disrupted, leading to new dynamics. strategies and local sourcing. 1 2 3 Digital Acceleration The pandemic accelerated digital transformation across various industries. Stakeholder Management in Business Identify Stakeholders 1 Determine all groups or individuals affected by the business. Analyse Interests 2 Understand the needs and expectations of each stakeholder group. Prioritise Stakeholders 3 Determine which stakeholders have the most influence or importance. Engage and Communicate 4 Develop strategies to effectively engage with and manage stakeholder relationships. Business Strategies for Sustainability Resource Sustainable Green Supply Efficiency Products Chain Implementing practices Developing products Working with suppliers to reduce waste and with minimal who follow sustainable energy consumption. environmental impact and ethical practices. throughout their lifecycle. The Role of Innovation in Business Product Innovation Creating new products or improving existing ones to meet customer needs. Process Innovation Improving business processes to increase efficiency and reduce costs. Business Model Innovation Developing new ways to create, deliver, and capture value. Open Innovation Collaborating with external partners to drive innovation and growth. Cultural Diversity in the Business Environment Global Cultural Market Insights Perspective Intelligence Diverse teams can Diverse teams bring Understanding and provide valuable varied perspectives, adapting to different insights into different enhancing problem- cultures improves market segments. solving and creativity. business relationships. The Gig Economy and Its Impact on Business 1 Flexible Workforce The gig economy allows businesses to access specialised skills on-demand. 2 Cost Savings Hiring gig workers can reduce overhead costs associated with full-time employees. 3 Challenges Managing a remote, flexible workforce requires new management approaches and tools. The Importance of Data in Business Decision-Making Data Collection 1 Gathering relevant data from various sources within and outside the organisation. Data Analysis 2 Using tools and techniques to extract meaningful insights from the data. Decision-Making 3 Using data-driven insights to inform and guide business decisions. Performance Monitoring 4 Continuously tracking key metrics to assess the impact of decisions. The Future of Work in the Business Environment Automation Remote Work Skill Adaptability The increased use of AI The rise of remote and To stay relevant in the and robotics is hybrid work models is future of work, transforming various changing the way we continuous learning and business functions. work. skill development are crucial. Portfolio Activity: Global Business Environments Case Study 1 Objective 2 Steps 3 Presentation Analyse a global 1. Choose a global Present your company's business company. 2. findings in a report environment using Research its or presentation PESTLE analysis. business format. environment. 3. Apply PESTLE analysis. Group Poster: Internal vs External Factors Objective Create a visual representation comparing internal and external business factors. Format Design a poster that clearly distinguishes between internal and external factors. Content Include examples, definitions, and the impact of each factor on businesses. Presentation Present your poster to the class, explaining your design choices and key points. Conclusion: Understanding the Business Environment 1 Key 2 Continuous 3 Next Steps Takeaways Learning Apply these Understanding both The business concepts to your internal and environment is portfolio activities external factors is always changing, and future business crucial for business requiring ongoing studies. success. adaptation and learning.