1、Chapter 2The business environment1 Analysing the environmentThe environment is everything that surrounds an organisation,physically and socially.Management cannot control the environment,however it influences all aspects of organisational activity and so must be viewed strategically.Organisation mus
2、t consider its environmentGlobal/localGeneral/taskGeneral(or macro)environment influence all organisations indirectly.PEST factorsTask(or micro)environment has a direct impact on the organisation.Five competitive forcesThe environment is a source of uncertainty.Simplicity/complexityThe variety of in
3、fluences faced by an organisationThe amount of knowledge necessaryThe interconnectedness of environmental influencesStability/dynamism1.1 The changing environmentGlobalisation of businessScience and technology developmentsMergers,acquisitions and strategic alliancesChanging customer values and behav
4、iourIncreased scrutiny of business decisions by government and the publicIncreased liberalisation of trade,and deregulation and co-operation between business and government have eased access to foreign marketsChanges in business practices:downsizing,outsourcing and reengineeringChanges in the social
5、 and business relationships between companies and their employees,customers and other stakeholders.QuestionsWhich of the following headings is not part of a normal PEST analysis?A PoliticalB EcologicalC SocialD TechnologicalAnswer:B2 The political and legal environment2.1 The political and legal env
6、ironmentCommon legal factors in environmentGeneral commercial law(contract,tort)Criminal law(theft,insider dealing)Company law(directors duties,reporting)Employment law(trade union,minimum wage)More common legal factorsHealth and Safety(fire,personal safety)Data protection(use of information)Marketi
7、ng/sales(consumers,advertising)Environment(emissions,waste disposal)Tax law(VAT,PAYE)2.2 The impact of governmentPorter notes several ways whereby the government can directly affect the economic structure of an industryCapacity expansionDemandDivestment and rationalisationEmerging industriesEntry ba
8、rriersCompetitionRegulate the adoption of new products in some industriesNational and EU institutions also affect the operating activities of some organisations2.3 Influencing governmentEmploy lobbyists to put their case to individual ministers or civil servants.Give MPs(Member of Parliament)non-exe
9、cutive directorshipsTry to influence public opinion,and hence the legislative agenda,by advertisingEU regulations,for practical purposes,take priority over national lawIt is therefore much better to influence the drafting process of new regulations than to try and get them changed once they have bee
10、n implemented2.4 Political risk and political changeIn UK,government will publish a green paper discussing a proposed change in the law,before issuing a white paper and passing a bill through parliament.The political risk in a decision is the risk that political factors will invalidate the strategy
11、and perhaps severely damage the firm.2.5 International tradePotentially subject to a higher level of political risk2.6 The European UnionThe European Union operates a single European market,allowing for the free movement of labour,goods and services,and free competitions.Harmonising technical standa
12、rds,opening up areas such as telecommunications to competition,consumer protection,mutual recognition of professional qualifications and so on.2.7 International trade liberalisation:the World Trade Organisation(WTO)The World Trade Organisation was set up to promote free trade and resolve disputes be
13、tween trading partners.The theory of comparative advantage suggests that free trade is the best way to promote global economic growth and,by implication,domestic prosperity.3 Employment protection3.1 RetirementBan ageismRetirement ages for men and women are being equalised.3.2 ResignationExit interv
14、iewPeriod of notice3.3 DismissalStatutory minimum period of noticeA written statement of the reasons for dismissal3.4 Wrongful dismissalThe employer has dismissed an employee however they have breached the terms of the contract.It relates to the method of dismissal.3.5 Unfair dismissalThe employee h
15、as been dismissed for an arbitrary reason the onus is on the employer to prove that it was a fair dismissal.3.6 Disciplinary procedures3.7 RedundancyCertain legal minima for compensation offered,based on age and length of service3.7.1 Procedure for handling redundanciesThe impact of a redundancy pro
16、gramme can be reduced in several waysRetirement of staff over the normal retirement ageEarly retirement to staff approaching normal retirement ageRestrictions on recruitment to reduce the workforce overtime by natural wastageDismissal of part-time or short-term contract staffOffering retraining and/
17、or redeployment within the organisationSeeking voluntary redundanciesLIFO principleProvide benefits in excess of the statutory minimumProvide advice and outplacement counseling3.8 Equal opportunities4 Data protection and security4.1 Why is privacy an important issue?4.2 The Data Protection Act 1998P
18、rotects individuals about whom data is held.Both manual and computerised information must comply with the Act.4.3 Definition of terms used in the ActPersonal data is information about a living individual.Data users are organisations or individuals who control personal data and the use of personal da
19、ta.A data subject is an individual who is the subject of personal data.4.4 The data protection principlesTo protect individual privacyTo harmonise data protection legislationData Protection Act 1998 principlesdata processed fairly and lawfullyobtained for specified,lawful purposesadequate,relevant a
20、nd not excessiveaccurate and up-to-datenot kept for longer than necessary processed in line with rights of data subjects appropriate measures taken against unauthorised use no transfer to countries where data protection rights not upheld4.4.1 The rights of data subjectsSeek compensationPut inaccurat
21、e data right or wiped offObtain access to dataSue a data userQuestions The Data Protection Act enables organisations to indiscriminately（不加选择地，任意地）utilise information held on all databases.True or false?A TrueB FalseAnswer:B5 Health and safety5.1 Importance of maintaining health and safety at workAn
22、 employer has legal obligations under UK and EU lawAccidents and illness cost the employer moneyThe companys image in the marketplace and society may suffer5.2 Employers duties Safe work practices/environment Plant/machinery maintained Training:encourage safe working practices Communication of polic
23、ies Risk assessments and controls Share information regarding hazards and risks Identify those most at risk Employ competent advisers5.3 Employees duties Take reasonable care Allow employer to carry out duties Not interfere with machinery Inform employer of dangers Use all equipment properly5.4 Acci
24、dent and safety policiesAccident are expensiveAn employee can sueReducing the frequency and severity of accidentsAccident reporting systemsAccident report formStatistical trendsFollow-upRisk audit or samplingReporting near-misses5.5 Health and safety policyStatement of principlesDetail of safety pro
25、ceduresCompliance with the lawDetailed instructions on how to use equipmentTraining requirementsSenior managers must set a good exampleQuestionsWhich of the following could be found as a feature of an organisational health and safety policy?A Employees medical assessmentsB Detailed instructions on h
26、ow to use equipmentC The company mission statementD An analysis of employee benefits in kind,including private health careAnswer:BExamplesSlippery or uneven floorsFrayed carpetsTrailing electric leads,telephone cables and other wiresObstacles(boxes,files,books,open drawers)in gangwaysStanding on cha
27、irs(particularly swivel chairs)to reach high shelvingBlocked staircases,for example where they are used for extra storage spaceLifting heavy items without bending properlyRemoving the safety guard on a machine to free a blockage or to make it run fasterEmployer has a responsibility to conform with r
28、elevant Health and Safety legislation in providing a safe environment and training staff to be able to operate in the work environment safelyEmployee has a duty to take reasonable care,report any breaches of healthy and safety.6 Consumer protection6.1 What is a contract?A contract is a legally bindi
29、ng agreement.This requires an offer made by one party,acceptance by the other party and,in England and Wales(but not Scotland),some consideration passing between them.They do not have to be written or spoken.Sell of Goods Act 19796.2 Sale of goods and services6.2.1 Implied termsThe effect of delay i
30、n performanceTitle,or the sellers right to sell the goodsDescription of the goodsQuality of the goodsFitness of the goods for the purpose for which they are suppliedSale by sample6.2.2 Time of performanceTime is of the essence6.2.3 Sellers titleThe seller has a right to sell the goods,or will have,a
31、t the time of sale.6.2.4 Example:Sellers title6.2.5 Goods to correspond with contract descriptionThe description may be of ingredients,components,age,date of shipment,packing,quality etc.6.2.6 Example:Sale by descriptionTrade Description Act 19686.2.7 Satisfactory qualityIn the course of business,th
32、ey should meet the standard that a reasonable person would regard as satisfactory,taking account of any description of the goods,the price and other relevant circumstances.Fitness for all the purposes for which goods of the kind in question are commonly supplied.Appearance and finishFreedom from min
33、or defectsSafetyDurability 6.2.8 Fitness of goods for a disclosed purposeThe goods supplied to be reasonably fit for that purpose,in the course of business7 Social and demographic trends7.1 Population and the labour marketPopulation affects an organisations supply of labour and hence its policies to
34、wards recruiting and managing human resources.Growing populations offer a larger labour marketThe changing age structure of the labour forceWomen are increasing their participation in the labour force7.2 Implications for employersEstablish the labour market the organisation is in(Who do we want to r
35、ecruit?)Discover the organisations catchment areas(location of potential recruits)Discern the supply side trends in the catchment area labour force(how many school leavers are expected?What is the rate of growth/decline of local population?)Examine education trends in the areaAssess the demand from
36、other employers for the skills you need Assess whether some of your demand can be satisfied by a supply from other sources7.3 Family life cycleFor marketing people7.4 Social structures and classMembers share common features,such as type of occupation,income level,education background and other varia
37、bles.Some research has been able to relate consumption behaviour to class standing7.5 Socio-economic position,income and wealthSocial class for marketing or planning purposes should be used with caution.Sometimes peoples lifestyle are a reflection of their economic condition in society,not the reaso
38、n for their position.7.6 Socio-economic statusComparing peoples income is a simple matter.But it is not enough.7.7 Buying patternsDemography and the class structure are relevant in that they can be both behavioural determinants and inhibitors.Behavioural determinants encourage people to buy a produc
39、t or service.Inhibitors are factors that make the person less likely to purchase something.QuestionsWhich of the following is NOT a factor when considering social class?A Educational attainmentB Inherited wealthC Number of childrenD StatusAnswer:CBuying behaviour is an important aspect of marketing.
40、What is an inhibitor?A An individuals personalityB A factor that makes a person less likely to purchase somethingC An individuals social classD An individuals cultureAnswer:BThe family life cycle identifies the various stages through which houshoulds progress.Is this statement true or false?A TrueB
41、FalseAnswer:A8 Cultural trends8.1 Health and diet issues8.2 Impact of health and diet on businessesGrowing market for sports-related goodsEmployee healthNew foodsA market for new sorts of convenience foodOrganic foods8.3 Women in workOvert discrimination is where one group is treated less favourably
42、 than another.Indirect discrimination makes it harder for somebody of a particular group to fulfill requirement.Equal pay for equal work and for equal value8.4 Environmentalism8.5 The business responseGreen productsChanged practicesLimitsEducation and confusionEnvironmental impact assessmentsQuestio
43、nsWhich of the following provides an example of indirect discrimination?A When one group is treated less favourably than anotherB When conditions are imposed,with which a substantial proportion cannot complyC When a person is penalised for giving information or taking actionD The use of threatening,
44、intimidarory,offensive or abusive language or behaviourAnswer:B9 The impact of technology on organisations9.1 Organisation structureNew structures throughDownsizingDelayeringOutsourcing9.1.1 Span of controlAbility of the managerAbility of the subordinatesNature of the taskThe geographical dispersalT
45、he availability of good quality information9.1.2 Tall and flat organisations9.1.3 Organisation structure and information systemsRelated9.2 Other effects of IT on organisations9.2.1 Routine processing(quicker routine processing)9.2.2 Digital information and record keeping(digital information easily s
46、orted)9.2.3 Employment issues(employee skills base changing)9.2.4 Technological change(continued change to keep up)9.2.5 Customer service(customer service enhanced)9.2.6 Information markets(information as a commodity)Information is a commodity which can be bought,sold or exchanged.9.2.7 Developments
47、 in communications(Email,voicemail,video-conferencing)9.3 IT and the employee/employer relationshipReduced need to follow the chain-of-commandInformation overloadNature of workClose business relationships regardless of geographical locationMore flexible working arrangementsGreater monitoring and con
48、trolDelayeringDownsizing9.4 Homeworking and supervisionTelecommuting 9.5 OutsourcingThe contracting out of specified operation or services to an external vendor9.5.1 Types of outsourcingAd-hocProject managementPartialTotal9.5.2 The advantages and disadvantages of outsourcingAdvantagesRemove uncertai
49、nty about costLong-term contracts encourage planning for the futureEconomies of scaleA specialist organisation is able to retain skills and knowledgeNew skills and knowledge become availableFlexibility(contract permitting)DisadvantagesInformation and its provision is an inherent part of the business
50、too important to be contracted outConfidential information,riskyNo onus upon internal management to keep up with new developments or to suggest new ideas Locked in to an unsatisfactory contractUnawareness of the potential costs and benefits of IS/IT within the organisationQuestionsWhich of the foll
