Business Environment

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What exactly is business environment?
What are the constituents of a business environment?
Identify & examine three classes of business environment?
What is the behaviour and performance outcomes of management for each class of business environment?
Business Environment Scanning and analysis (BESA).
What are the benefits of conducting a BESA?
Where should you focus the analysis?
Macro Environment Analysis (BESA).
Using the PESTEL model to conduct macro environment analysis.
Where should you focus the analysis?
What are the attributes of an excellent macro-environment analysis?

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Business Environment

  1. 1. BUSINESSENVIRONMENT
  2. 2. Learning ObjectivesI. What exactly is business environment? i. What are the constituents of a business environment? ii. Identify & examine three classes of business environment? iii. What is the behaviour and performance outcomes of management for each class of business environment?II. Business Environment Scanning and analysis (BESA). i. What are the benefits of conducting a BESA? ii. Where should you focus the analysis? © 2013 Berlin Asong. All rights reserved. 2
  3. 3. Learning ObjectivesIII. Macro Environment Analysis (BESA). i. Using the PESTEL model to conduct macro environment analysis. ii. Where should you focus the analysis? iii. What are the attributes of an excellent macro-environment analysis? © 2013 Berlin Asong. All rights reserved. 3
  4. 4. Business Environment© 2013 Berlin Asong. All rights reserved. 4
  5. 5. The space in which an organisation does business.© 2013 Berlin Asong. All rights reserved. 5
  6. 6. What is inside that space?© 2013 Berlin Asong. All rights reserved. 6
  7. 7. © 2013 Berlin Asong. All rights reserved. 7
  8. 8. Classes of BusinessEnvironment.© 2013 Berlin Asong. All rights reserved. 8
  9. 9. Classes of Business Environment Stable Dynamic Complex© 2013 Berlin Asong. All rights reserved. 9
  10. 10. © 2013 Berlin Asong. All rights reserved. 10
  11. 11. Minimal or subtle changes.© 2013 Berlin Asong. All rights reserved. 11
  12. 12. © 2013 Berlin Asong. All rights reserved. 12
  13. 13. Manager’s arerelatively confident intheir decisions and of the future. Mood of Management© 2013 Berlin Asong. All rights reserved. 13
  14. 14. Managers tend tohave plenty of time to“right” past mistakes. © 2013 Berlin Asong. All rights reserved. 14
  15. 15. Performance (Results) Organisational performance tends to be predictable.© 2013 Berlin Asong. All rights reserved. 15
  16. 16. Planning Cycle In principle, strategic plans tend to run their full course.© 2013 Berlin Asong. All rights reserved. 16
  17. 17. In a globalisation age, is there such thing as a stable business environment?© 2013 Berlin Asong. All rights reserved. 17
  18. 18. © 2013 Berlin Asong. All rights reserved. 18
  19. 19. Speedy and challenging changes.© 2013 Berlin Asong. All rights reserved. 19
  20. 20. © 2013 Berlin Asong. All rights reserved. 20
  21. 21. Manager’s are relatively less confident in their decisions and uncertain about the future.© 2013 Berlin Asong. All rights reserved. 21
  22. 22. Time becomes aluxury to managers. © 2013 Berlin Asong. All rights reserved. 22
  23. 23. Performance (Results) Organisational performance tends to be less predictable.© 2013 Berlin Asong. All rights reserved. 23
  24. 24. Planning CycleStrategic plans are unlikelyto run their full course, & if they do, they are shorter.© 2013 Berlin Asong. All rights reserved. 24
  25. 25. © 2013 Berlin Asong. All rights reserved. 25
  26. 26. An extension of a dynamicenvironment; myriad of contradictory issues, difficult to understand. © 2013 Berlin Asong. All rights reserved. 26
  27. 27. Short-term & long-term decisions become hard to make.© 2013 Berlin Asong. All rights reserved. 27
  28. 28. Performance (Results) Organisational performance is less predictable.© 2013 Berlin Asong. All rights reserved. 28
  29. 29. Planning Cycle Strategic plans are no match to tumultuous & uncertain environment.© 2013 Berlin Asong. All rights reserved. 29
  30. 30. The 2008/09 global financialmeltdown epitomises today’s complex environment. © 2013 Berlin Asong. All rights reserved. 30
  31. 31. © 2013 Berlin Asong. All rights reserved. 31
  32. 32. BusinessEnvironment Scanning & Analysis© 2013 Berlin Asong. All rights reserved. 32
  33. 33. © 2013 Berlin Asong. All rights reserved. 33
  34. 34. © 2013 Berlin Asong. All rights reserved. 34
  35. 35. © 2013 Berlin Asong. All rights reserved. 35
  36. 36. © 2013 Berlin Asong. All rights reserved. 36
  37. 37. © 2013 Berlin Asong. All rights reserved. 37
  38. 38. Importance of environmental scanningin strategic planning process? © 2013 Berlin Asong. All rights reserved. 38
  39. 39. © 2013 Berlin Asong. All rights reserved. 39
  40. 40. 1 …leads to the identification of Strengths Opportunities Weaknesses Threats© 2013 Berlin Asong. All rights reserved. 40
  41. 41. Strengths & Strengths Opportunities Weaknesses are concerned with ‘internal issues’. Weaknesses Threats© 2013 Berlin Asong. All rights reserved. 41
  42. 42. Strengths Opportunities Opportunities &Threats are concerned Weaknesses Threats with ‘external issues’. © 2013 Berlin Asong. All rights reserved. 42
  43. 43. Match Strengths Opportunities Convert Convert Weaknesses Threats Minimise Minimise© 2013 Berlin Asong. All rights reserved. 43
  44. 44. 2 The process is informationdriven; can improve the quality of strategic decisions. © 2013 Berlin Asong. All rights reserved. 44
  45. 45. © 2013 Berlin Asong. All rights reserved. 45
  46. 46. 3 The firm maybe better prepared to capture marketopportunities; confront market risks.© 2013 Berlin Asong. All rights reserved. 46
  47. 47. The assumption is the process enablesmanagers to grow specific knowledge vital to outperform the competition. © 2013 Berlin Asong. All rights reserved. 47
  48. 48. 4 Improved managerialknowledge of the business environment.© 2013 Berlin Asong. All rights reserved. 48
  49. 49. 5 To identify & deploy suitable competitive strategies.© 2013 Berlin Asong. All rights reserved. 49
  50. 50. 6 Can result to effective and efficient use of firm’s resources.© 2013 Berlin Asong. All rights reserved. 50
  51. 51. 7 Can lead to improved sales and profit.© 2013 Berlin Asong. All rights reserved. 51
  52. 52. © 2013 Berlin Asong. All rights reserved. 52
  53. 53. Dimensions of Business Environment Analysis© 2013 Berlin Asong. All rights reserved. 53
  54. 54. © 2013 Berlin Asong. All rights reserved. 54
  55. 55. © 2013 Berlin Asong. All rights reserved. 55
  56. 56. © 2013 Berlin Asong. All rights reserved. 56
  57. 57. © 2013 Berlin Asong. All rights reserved. 57
  58. 58. © 2013 Berlin Asong. All rights reserved. 58
  59. 59. Consumers, communities,competitors, suppliers, etc © 2013 Berlin Asong. All rights reserved. 59
  60. 60. © 2013 Berlin Asong. All rights reserved. 60
  61. 61. McKinsey 7S diagnosis© 2013 Berlin Asong. All rights reserved. 61
  62. 62. Value-chain diagnosisPri Inbound Outbound Marketing & Margin/Profitm Production Service Logistics Logistics SalesaryS Procurementup Technology Developmentp Margin/Profito Human Resource Managementrt Firm Infrastructure© 2013 Berlin Asong. All rights reserved. 62
  63. 63. © 2013 Berlin Asong. All rights reserved. 63
  64. 64. Macro-Environment:PESTEL Analysis© 2013 Berlin Asong. All rights reserved. 64
  65. 65. © 2013 Berlin Asong. All rights reserved. 65
  66. 66. PESTEL Analysis© 2013 Berlin Asong. All rights reserved. 66
  67. 67. Opportunities Risks© 2013 Berlin Asong. All rights reserved. 67
  68. 68. Political Environment© 2013 Berlin Asong. All rights reserved. 68
  69. 69. © 2013 Berlin Asong. All rights reserved. 69
  70. 70. Political rule or governance of a country or state.© 2013 Berlin Asong. All rights reserved.
  71. 71. © 2013 Berlin Asong. All rights reserved. 71
  72. 72. © 2013 Berlin Asong. All rights reserved. 72
  73. 73. © 2013 Berlin Asong. All rights reserved. 73
  74. 74. © 2013 Berlin Asong. All rights reserved. 74
  75. 75. © 2013 Berlin Asong. All rights reserved. 75
  76. 76. © 2013 Berlin Asong. All rights reserved. 76
  77. 77. © 2013 Berlin Asong. All rights reserved. 77
  78. 78. © 2013 Berlin Asong. All rights reserved. 78
  79. 79. How appealing is your country to foreign businesses? What initiatives arebeen taken by your national government to attract foreign businesses? © 2013 Berlin Asong. All rights reserved.
  80. 80. © 2013 Berlin Asong. All rights reserved. 80
  81. 81. …ushers in new policies.© 2013 Berlin Asong. All rights reserved. 81
  82. 82. © 2013 Berlin Asong. All rights reserved. 82
  83. 83. © 2013 Berlin Asong. All rights reserved. 83
  84. 84. ObamasignsintoLawnewWall Street Reforms andConsumer Protection Reforms—21July2010 © 2013 Berlin Asong. All rights reserved. 84
  85. 85. DavidCameron’s immigration cap and economic austerity— July2010© 2013 Berlin Asong. All rights reserved. 85
  86. 86. © 2013 Berlin Asong. All rights reserved. 86
  87. 87. Political uncertainty in Syria, 2012.© 2013 Berlin Asong. All rights reserved. 87
  88. 88. © 2013 Berlin Asong. All rights reserved. 88
  89. 89. © 2013 Berlin Asong. All rights reserved. 89
  90. 90. © 2013 Berlin Asong. All rights reserved. 90
  91. 91. Civil unrests in the Gulf region, andgeopolitical tension between the West and Iran tend to push up oil prices. © 2013 Berlin Asong. All rights reserved. 91
  92. 92. Libya’s crude oil production output fell, supply-routes werePicture Source: Wikipedia disrupted by the 2011 © 2013 Berlin Asong. All rights reserved. spring uprising.92
  93. 93. Libyas Oil Production Could Quadruple In A Year Source: Business Insider (2011). Retrieved from http://articles.businessinsider.com/2011-10-20/markets/30301294_1_libyan-crude-oil-industry-libyan-oil© 2013 Berlin Asong. All rights reserved. 93
  94. 94. Source: Business Insider (2011). Retrieved from http://articles.businessinsider.com/2011-10-20/markets/30301294_1_libyan-crude-oil-industry-libyan-oil© 2013 Berlin Asong. All rights reserved. 94
  95. 95. © 2013 Berlin Asong. All rights reserved. 95
  96. 96. The political, economic,socio-cultural and technological integration of nations.© 2013 Berlin Asong. All rights reserved.
  97. 97. Opportunities Globalisation© 2013 Berlin Asong. All rights reserved. 97
  98. 98. 1 Access to low-cost labour and raw materials.© 2013 Berlin Asong. All rights reserved. 98
  99. 99. 2Access to new markets© 2013 Berlin Asong. All rights reserved. 99
  100. 100. 3 Access to additional income streams.© 2013 Berlin Asong. All rights reserved. 100
  101. 101. 4Increased productivity© 2013 Berlin Asong. All rights reserved. 101
  102. 102. Threats Globalisation© 2013 Berlin Asong. All rights reserved. 102
  103. 103. Political risks Regulatory risks Competitive forces Exchange rate risks Competitive forces Natural disasters Etc.© 2013 Berlin Asong. All rights reserved. 103
  104. 104. © 2013 Berlin Asong. All rights reserved. 104
  105. 105. A clear political order & application of laws Executive | Parliament |Judiciary | Human rights © 2013 Berlin Asong. All rights reserved.
  106. 106. Summary War Political stability Change of governments Governmental policies Terrorism Etc.© 2013 Berlin Asong. All rights reserved. 106
  107. 107. © 2013 Berlin Asong. All rights reserved. 107
  108. 108. Economic Environment© 2013 Berlin Asong. All rights reserved. 108
  109. 109. © 2013 Berlin Asong. All rights reserved. 109
  110. 110. Recession | Recovery | Boom© 2013 Berlin Asong. All rights reserved. 110
  111. 111. Booming Economy Indicators Rise in real GDP Rising employment rate Increase in personal income Increase in consumer spending Rise in corporate spending Rise in corporate earnings Etc.© 2013 Berlin Asong. All rights reserved. 111
  112. 112. Declining Economy Indicators GDP contraction Fall in personal income Rising unemployment rate Decline in corporate earnings Fall in consumer spending Fall in corporate spending Etc.© 2013 Berlin Asong. All rights reserved. 112
  113. 113. © 2013 Berlin Asong. All rights reserved.
  114. 114. UK Economy Continues to Contract© 2013 Berlin Asong. All rights reserved. 114
  115. 115. Have firms modified their behaviours as a result of the 2008/09 global economic recession? In what ways?© 2013 Berlin Asong. All rights reserved.
  116. 116. Laid-off staffs Exited market Entered new markets Renewed focus on ethics Forged new partnerships Risk-adverse management Focused on short-term gains Reconfigured competitive strategy Etc.© 2013 Berlin Asong. All rights reserved. 116
  117. 117. © 2013 Berlin Asong. All rights reserved. 117
  118. 118. © 2013 Berlin Asong. All rights reserved. 118
  119. 119. © 2013 Berlin Asong. All rights reserved. 119
  120. 120. © 2013 Berlin Asong. All rights reserved. 120
  121. 121. Mass layoffs in the auto,financial, retail, FMCG, tech, public-service industries between 2008 & 2012.© 2013 Berlin Asong. All rights reserved.
  122. 122. UK Unemployment Rate 2008-2010© 2013 Berlin Asong. All rights reserved. 122
  123. 123. Are some industries more affected by rising unemployment?© 2013 Berlin Asong. All rights reserved.
  124. 124. © 2013 Berlin Asong. All rights reserved. 124
  125. 125. © 2013 Berlin Asong. All rights reserved. 125
  126. 126. Sony’s 2010 & 2011 TV sales were hurt by a strong Yen amidst other reasons.© 2013 Berlin Asong. All rights reserved. 126
  127. 127. Does the UK tourismindustry benefit from adeclining British pound?© 2013 Berlin Asong. All rights reserved.
  128. 128. Does Brazil’s export industry benefit from a declining real?© 2013 Berlin Asong. All rights reserved.
  129. 129. © 2013 Berlin Asong. All rights reserved. 129
  130. 130. Levies on personal & corporate earnings.© 2013 Berlin Asong. All rights reserved. 130
  131. 131. Low corporate tax rates is oneof the main reasons Ireland attractsbusinesses like Google & Facebook. Humphries, C. (2012), “Apple Announces 500 New Jobs in Ireland”. Retrieved April 20, 2012, from www.retuers.com © 2013 Berlin Asong. All rights reserved. 131
  132. 132. © 2013 Berlin Asong. All rights reserved. 132
  133. 133. The of price borrowed money.© 2013 Berlin Asong. All rights reserved.
  134. 134. © 2013 Berlin Asong. All rights reserved. 134
  135. 135. Has the BoE’s interest rate of 0.5% stimulated bank lending?© 2013 Berlin Asong. All rights reserved.
  136. 136. © 2013 Berlin Asong. All rights reserved. 136
  137. 137. Fiscal policies aimed at reducing national debt© 2013 Berlin Asong. All rights reserved. 137
  138. 138. Austerity (Fiscal) Policies Welfare benefit cuts. Public sector job-cuts. Cut in government spending. Public-sector wage cut/freeze. Increase in taxes (income, consumption, corporate, etc.). Etc.© 2013 Berlin Asong. All rights reserved. 138
  139. 139. © 2013 Berlin Asong. All rights reserved. 139
  140. 140. Are austerity measuresthe reason for slow economic growth in the Eurozone?© 2013 Berlin Asong. All rights reserved.
  141. 141. © 2013 Berlin Asong. All rights reserved. 141
  142. 142. An increase in the pricesof products and services in acountry over a period of time.© 2013 Berlin Asong. All rights reserved.
  143. 143. Is inflation good or bad to an economy ?© 2013 Berlin Asong. All rights reserved.
  144. 144. © 2013 Berlin Asong. All rights reserved. 144
  145. 145. …expressed by the numberof competitors in an industry. © 2013 Berlin Asong. All rights reserved.
  146. 146. Monopoly A single provider of a service or good in an industry E.g.: the market for desktop operating systems© 2013 Berlin Asong. All rights reserved. 146
  147. 147. Duopoly An industry dominated by two firms E.g.: the market for desktop operating systems© 2013 Berlin Asong. All rights reserved. 147
  148. 148. © 2013 Berlin Asong. All rights reserved. 148
  149. 149. The aerospaceindustry is far from being duopolistic.© 2013 Berlin Asong. All rights reserved. 149
  150. 150. © 2013 Berlin Asong. All rights reserved. 150
  151. 151. Oligopoly An industry dominated by few firms E.g.: the market for desktop operating systems© 2013 Berlin Asong. All rights reserved. 151
  152. 152. © 2013 Berlin Asong. All rights reserved. 152
  153. 153. Availability and quality ofservices used to facilitate economic transactions & development.© 2013 Berlin Asong. All rights reserved. 153
  154. 154. Economic Infrastructure Fiscal policies Banking system Transport system Monetary policies Telecommunication system© 2013 Berlin Asong. All rights reserved. 154
  155. 155. How strong is theeconomic infrastructure in your country?© 2013 Berlin Asong. All rights reserved.
  156. 156. Summary GDP Interest rates Exchange rates Consumer confidence Price inflation Unemployment Size of disposable income Nature of market competition Etc.© 2013 Berlin Asong. All rights reserved. 156
  157. 157. © 2013 Berlin Asong. All rights reserved. 157
  158. 158. Socio-cultural Environment© 2013 Berlin Asong. All rights reserved. 158
  159. 159. © 2013 Berlin Asong. All rights reserved. 159
  160. 160. Source: Office for National Statistics, UK, 2010© 2013 Berlin Asong. All rights reserved. 160
  161. 161. Age Group Growth Rate © 2013 Berlin Asong. All rights reserved. 161
  162. 162. © 2013 Berlin Asong. All rights reserved. 162
  163. 163. Fertility | Mortality | Life Expectancy Source: Office for National Statistics, UK, 2010© 2013 Berlin Asong. All rights reserved. 163
  164. 164. Growing Middle Class Population.© 2013 Berlin Asong. All rights reserved. 164
  165. 165. Middle-class population as a % of global population.1820 1890 1913 1938 1950 1960 1980 1990 2000 2006Source: Economist © 2013 Berlin Asong. All rights reserved. 165
  166. 166. Middle-class population as a % of global population 1700 1850 1950 1980 2006 Source: Economist © 2013 Berlin Asong. All rights reserved. 166
  167. 167. © 2013 Berlin Asong. All rights reserved. 167
  168. 168. 1—2 3—4 5—6 7+ Family-size Segments© 2013 Berlin Asong. All rights reserved. 168
  169. 169. © 2013 Berlin Asong. All rights reserved. 169
  170. 170. © 2013 Berlin Asong. All rights reserved. 170
  171. 171. © 2013 Berlin Asong. All rights reserved. 171
  172. 172. ... Couple-households© 2013 Berlin Asong. All rights reserved. 172
  173. 173. ... Single-mother households© 2013 Berlin Asong. All rights reserved. 173
  174. 174. Source: Office for National Statistics, UK, 2010© 2013 Berlin Asong. All rights reserved. 174
  175. 175. Single Engaged Married Widow Widower Divorced Marital-status Segments© 2013 Berlin Asong. All rights reserved. 175
  176. 176. © 2013 Berlin Asong. All rights reserved. 176
  177. 177. © 2013 Berlin Asong. All rights reserved. 177
  178. 178. © 2013 Berlin Asong. All rights reserved. 178
  179. 179. The habits, attitudes,moral standards, economiclevel, etc., that typify your mode of living. © 2013 Berlin Asong. All rights reserved. 179
  180. 180. © 2013 Berlin Asong. All rights reserved. 180
  181. 181. © 2013 Berlin Asong. All rights reserved. 181
  182. 182. © 2013 Berlin Asong. All rights reserved. 182
  183. 183. © 2013 Berlin Asong. All rights reserved. 183
  184. 184. © 2013 Berlin Asong. All rights reserved. 184
  185. 185. © 2013 Berlin Asong. All rights reserved. 185
  186. 186. © 2013 Berlin Asong. All rights reserved. 186
  187. 187. © 2013 Berlin Asong. All rights reserved. 187
  188. 188. © 2013 Berlin Asong. All rights reserved. 188
  189. 189. Source: Office for National Statistics, UK, 2010 © 2013 Berlin Asong. All rights reserved. 189
  190. 190. © 2013 Berlin Asong. All rights reserved. 190
  191. 191. © 2013 Berlin Asong. All rights reserved. 191
  192. 192. © 2013 Berlin Asong. All rights reserved. 192
  193. 193. © 2013 Berlin Asong. All rights reserved. 193
  194. 194. Crimes Murder Hacking Kidnappings Money laundering Bribery & corruption Counterfeiting Hijacking Piracy Theft© 2013 Berlin Asong. All rights reserved. Etc. 194
  195. 195. © 2013 Berlin Asong. All rights reserved. 195
  196. 196. Wal-Mart May Pay Millions to Resolve Mexican Bribery Allegations. Source: LA Times (2012). Retrieved from www.latimes.com/business/la-fi-wal-mart-bribery-20120424,0,2920404.story© 2013 Berlin Asong. All rights reserved. 196
  197. 197. Should the briberyallegation be true, what effect would it have on Wal-Mart?© 2013 Berlin Asong. All rights reserved.
  198. 198. © 2013 Berlin Asong. All rights reserved. 198
  199. 199. Global Corruption Barometer: 2009 Corruption Perception Index (CPI)—Selected Ranks Source: Selected data from the TI Corruption Perception index, 2009 Top 20—Least Corrupt1. New Zealand 12. Luxembourg2. Denmark 14. Germany3. Singapore 14. Ireland3. Sweden 16. Austria5. Switzerland 17. Japan6. Finland 17. United Kingdom6. Netherlands 19. United States8. Australia 20. Barbados8. Canada8. Iceland11. Norway12. Honk Kong© 2013 Berlin Asong. All rights reserved. 199
  200. 200. Global Corruption Barometer: 2009 Corruption Perception Index (CPI)—Selected Ranks Source: Selected data from the TI Corruption Perception index, 2009 Bottom 20—Most Corrupt 158. Tajikistan 176. Iraq 162. Angola 176. Sudan 162. Congo Brazzaville 178. Myanmar 162. Dem Rep Congo 179. Afghanistan 162. Guinea-Bissau 180. Somalia 162. Kyrgyzstan 162. Venezuela 168. Burundi 168. Equatorial Guinea 168. Guinea 168. Haiti 168. Iran 168. Turkmenistan 174. Uzbekistan 175. Chad© 2013 Berlin Asong. All rights reserved. 200
  201. 201. © 2013 Berlin Asong. All rights reserved. 201
  202. 202. Pandemics© 2013 Berlin Asong. All rights reserved. 202
  203. 203. Avian Flu Swine flu Mad-cow© 2013 Berlin Asong. All rights reserved. 203
  204. 204. Which industries were affected by the 2009 Swine flu pandemic?© 2013 Berlin Asong. All rights reserved.
  205. 205. Airline Food Agribusinesses Restaurant dining Public-gathering activities© 2013 Berlin Asong. All rights reserved. 205
  206. 206. It’s difficult to predict a pandemic. Pandemic-vulnerable businesses should have contingency plans. © 2013 Berlin Asong. All rights reserved.
  207. 207. © 2013 Berlin Asong. All rights reserved. 207
  208. 208. © 2013 Berlin Asong. All rights reserved. 208
  209. 209. © 2013 Berlin Asong. All rights reserved. 209
  210. 210. Increasing preference for healthy foods & drinks.Source: Joe (2009). Retrieved from www.livestrong.com/blog/blog/curious-joe-wants-to-know-are-you-addicted-to-diet-coke/ © 2013 Berlin Asong. All rights reserved.
  211. 211. Launched in March 2012© 2013 Berlin Asong. All rights reserved. 211
  212. 212. © 2013 Berlin Asong. All rights reserved. 212
  213. 213. Source: Northattan (2011). Retrieved from http://northattan.com/wp-content/uploads/2011/11/IMG_93111.jpg © 2013 Berlin Asong. All rights reserved. 213
  214. 214. STPaul’s Cathedral, London© 2013 Berlin Asong. All rights reserved. 214
  215. 215. © 2013 Berlin Asong. All rights reserved. 215
  216. 216. © 2013 Berlin Asong. All rights reserved. 216
  217. 217. © 2013 Berlin Asong. All rights reserved. 217
  218. 218. © 2013 Berlin Asong. All rights reserved. 218
  219. 219. Source: Bonini, McKillop, & Mendonca 2007© 2013 Berlin Asong. All rights reserved. 219
  220. 220. © 2013 Berlin Asong. All rights reserved. 220
  221. 221. © 2013 Berlin Asong. All rights reserved. 221
  222. 222. © 2013 Berlin Asong. All rights reserved. 222
  223. 223. Protectionism© 2013 Berlin Asong. All rights reserved. 223
  224. 224. © 2013 Berlin Asong. All rights reserved. 224
  225. 225. Buddhism Christianity Hinduism Islam Judaism Shintoism Etc.© 2013 Berlin Asong. All rights reserved. 225
  226. 226. © 2013 Berlin Asong. All rights reserved. 226
  227. 227. © 2013 Berlin Asong. All rights reserved. 227
  228. 228. © 2013 Berlin Asong. All rights reserved. 228
  229. 229. © 2013 Berlin Asong. All rights reserved. 229
  230. 230. © 2013 Berlin Asong. All rights reserved. 230
  231. 231. © 2013 Berlin Asong. All rights reserved. 231
  232. 232. © 2013 Berlin Asong. All rights reserved. 232
  233. 233. Hofstede Four Dimensions of National Culture Power distance Uncertainty avoidance Individualism Masculinity© 2013 Berlin Asong. All rights reserved. 233
  234. 234. According to Geert Hofstede…© 2013 Berlin Asong. All rights reserved. 234
  235. 235. Power distance culture The degree to which hierarchy and class exist in a society.© 2013 Berlin Asong. All rights reserved. 235
  236. 236. High Power Distant Culture Nations Brazil Spain Singapore Japan Philippines Venezuela France India© 2013 Berlin Asong. All rights reserved. Etc. 236
  237. 237. Low Power Distant Culture Nations UK Germany Australia Austria USA Denmark Canada Etc.© 2013 Berlin Asong. All rights reserved. 237
  238. 238. Uncertainty avoidance culture The degree to which people tend to avoid uncertainty, ambiguity, conventions.© 2013 Berlin Asong. All rights reserved. 238
  239. 239. High Uncertainty Avoidance Culture Nations Japan South Korea Greece Pakistan Etc.© 2013 Berlin Asong. All rights reserved. 239
  240. 240. Low Uncertainty Avoidance Culture Nations Hong Kong Denmark Etc.© 2013 Berlin Asong. All rights reserved. 240
  241. 241. Individualism culture The degree towhich people placepersonal interests over collective interests. © 2013 Berlin Asong. All rights reserved. 241
  242. 242. High Individualism Culture Nations Australia Canada Netherland UK USA Etc.© 2013 Berlin Asong. All rights reserved. 242
  243. 243. Low Individualism Culture Nations Columbia Greece Hong Kong Mexico Peru Taiwan Etc.© 2013 Berlin Asong. All rights reserved. 243
  244. 244. © 2013 Berlin Asong. All rights reserved. 244
  245. 245. Technological Environment© 2013 Berlin Asong. All rights reserved. 245
  246. 246. The state and pace of technological advances and uses.© 2013 Berlin Asong. All rights reserved.
  247. 247. Internet© 2013 Berlin Asong. All rights reserved. 247
  248. 248. The internet has altered the business landscape, & continues torewrite the “rules” of doing business. © 2013 Berlin Asong. All rights reserved.
  249. 249. © 2013 Berlin Asong. All rights reserved. Source: Office for National Statistics, UK, 2010 249
  250. 250. How is the internet revolutionising society and businesses?© 2013 Berlin Asong. All rights reserved.
  251. 251. Broadband Speed© 2013 Berlin Asong. All rights reserved. 251
  252. 252. Then Now The impact of mobile technologies on society.© 2013 Berlin Asong. All rights reserved. 252
  253. 253. The advent of mobile payment.© 2013 Berlin Asong. All rights reserved. 253
  254. 254. © 2013 Berlin Asong. All rights reserved. 254
  255. 255. Influence of Social Media© 2013 Berlin Asong. All rights reserved. 255
  256. 256. Source: Office for National Statistics, UK, 2010© 2013 Berlin Asong. All rights reserved. 256
  257. 257. Source: Office for National Statistics, UK, 2010© 2013 Berlin Asong. All rights reserved. 257
  258. 258. © 2013 Berlin Asong. All rights reserved. 258
  259. 259. Has the power of social media been exaggerated?© 2013 Berlin Asong. All rights reserved.
  260. 260. © 2013 Berlin Asong. All rights reserved. 260
  261. 261. Ecological Environment© 2013 Berlin Asong. All rights reserved. 261
  262. 262. © 2013 Berlin Asong. All rights reserved. 262
  263. 263. Tsunami Drought Earthquake Volcanic eruption Hurricane Flooding Etc.© 2013 Berlin Asong. All rights reserved. 263
  264. 264. 2011 JapaneseTsunami: lost of lives & livelihood; supply-chains disrupted, etc.© 2013 Berlin Asong. All rights reserved. 264
  265. 265. Flight cancellations in urope in 2010 & 2011aused by the Icelandic volcanic ash-cloud. © 2013 Berlin Asong. All rights reserved. 265
  266. 266. Drought in the Horn of Africa.© 2013 Berlin Asong. All rights reserved. 266
  267. 267. © 2013 Berlin Asong. All rights reserved. 267
  268. 268. © 2013 Berlin Asong. All rights reserved. 268
  269. 269. Depletion of natural resources.© 2013 Berlin Asong. All rights reserved. 269
  270. 270. Waste© 2013 Berlin Asong. All rights reserved. 270
  271. 271. BP oil spillin the Gulf of Mexico of 2010. © 2013 Berlin Asong. All rights reserved. 271
  272. 272. © 2013 Berlin Asong. All rights reserved. 272
  273. 273. LEGAL Environment© 2013 Berlin Asong. All rights reserved. 273
  274. 274. © 2013 Berlin Asong. All rights reserved. 274
  275. 275. Major Business Regulatory Frameworks. Advertising laws Competition laws Consumer protection laws Intellectual property laws Health & Safety laws Employment laws Etc.© 2013 Berlin Asong. All rights reserved. 275
  276. 276. © 2013 Berlin Asong. All rights reserved. 276
  277. 277. © 2013 Berlin Asong. All rights reserved. 277
  278. 278. Burger King to scrap ad after complaint© 2013 Berlin Asong. All rights reserved. 278
  279. 279. © 2013 Berlin Asong. All rights reserved. 279
  280. 280. © 2013 Berlin Asong. All rights reserved. 280
  281. 281. What are the attributes of a great macro-environment analysis?© 2013 Berlin Asong. All rights reserved. 281
  282. 282. 1 Thorough &facts-checked. © 2013 Berlin Asong. All rights reserved. 282
  283. 283. 2 The issues covered arerelevant to the purpose for which the analysis was commissioned. © 2013 Berlin Asong. All rights reserved. 283
  284. 284. PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL PESTEL© 2013 Berlin Asong. All rights reserved. 284
  285. 285. 3 It’s up-to-date and tracks future trends. © 2013 Berlin Asong. All rights reserved. 285
  286. 286. 4 It’s actionable. © 2013 Berlin Asong. All rights reserved. 286
  287. 287. © 2013 Berlin Asong. All rights reserved. 287

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