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Business environment Analysis (BEA)

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Business environment Analysis (BEA)

Business environment Analysis (BEA)

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  • 1. Business Environment Analysis (BEA) Prepared by Mr. Ratha Chan
  • 2. INTRODUCTION TO BEA Any organization , business and institution is operating under its specific environment. As a consequence , they need to understand and analyze thoroughly those factors in order to achieve the overall goal of the organization. BEA is one of the first steps in strategic management or the first move from any business's perspective before they made a decision. And Also it is used to stay up to date on trend and keeping their competiveness ahead of the competitors. There are two main factors in BEA : 1- Internal Factor (Internal Environment) 2- External Factor (External Environment)
  • 3. OVERALL PICTURE OF BEA Supplier Customer Competitors Internal factors: Product line, Staff capital and financial
  • 4. BUSINESS ENVIRONMENT Divided into two main factors that could impact to business operation : 1- Internal Factor 2- External Factor Business Operation Internal Factors External Factors
  • 5. INTERNAL FACTORS:  Labor problems  Credit policy changes  Change in incentive schemes  Inventory shortages  Working capital shortage  New product lines  Expected cost of raw materials, storage, shipping  Product past sales  Change in ownership or shareholders  Vision, Mission , Objectives ,Organizational structure and internal communication flow chart
  • 6. EXTERNAL FACTORS Divided into two more factors : 1- Direct Factors (closer to business operation) - Distributor - Supplier - Alliance - Association - Customer - Competitor
  • 7. EXTERNAL FACTORS (CON’T) 2- Indirect Factors (macro-environment) - PEST or SLEPT Analysis P: Politic E: Economic S: Social T: Technology L: Legal
  • 8. ENVIRONMENTAL ANALYSIS- TECHNIQUES SWOT Industry Analysis Techniques Competitor Analysis PEST/ SLEPT Strategic Questions
  • 9. The SWOT Analysis will help you to assess your internal resources and opportunity in order to optimizing your strength and minimizing your weaknesses.
  • 10. INDUSTRY ANALYSIS (COMPETITIVE 5 FORCES)
  • 11. COMPETITOR ANALYSIS Using the Five P’s Analysis : 1- Positioning 2- Product 3- Price 4- Promotion 5- People
  • 12. ENVIRONMENTAL ANALYSIS- TECHNIQUES The above techniques use to explore all possible options, ideas, market trend , market penetration , exit strategy , competitor threat and strategy to hit back , real internal capability , particular industrial trend , threat of legal and regulation , current government policy and future trend, new investment , expansion strategy, labor relation , best practices, local adoption strategy, geographical and logistics and any other specific information.
  • 13. DISCUSSION QUESTION  Does Khmer culture encourage people to run their own business? How ? Providing a concrete examples ?  How could you compare Khmer culture and Chinese culture in the entrepreneurship context ? Or Vietnamese culture?