Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
STAKEHOLDER and BUSINESS ENVIRONMENT
Schematic Presentation <ul><li>Business Firm View </li></ul><ul><li>Stakeholder Analysis </li></ul><ul><li>Business Intera...
Business Firm View <ul><li>Traditional View   </li></ul><ul><ul><li>Business as Economic Institution </li></ul></ul><ul><u...
Traditional View <ul><li>Business as Economic Institution </li></ul><ul><li>Business as economic entity that interact with...
Business as an Economic Institution Business Firm Choice of  Employees Uses of Resources Quantities of Output Price & Prod...
Business as Sociopolitical Institution Business Firm International Environment Changes in Ideologies & Values <ul><li>Incr...
System View of Business <ul><li>Business as an living organism that interact with and affected by environment for economic...
Business as Multipurpose Institution Market: Competition Stakeholder: Expectation <ul><li>Business: </li></ul><ul><ul><li>...
Stakeholder? <ul><li>All the groups affected by a corporation’s decision and policies </li></ul><ul><li>Primary  Secondary...
Primary Stakeholder Business  Employees (union ) Stockholder Wholesaler Retailer Competitor Creditor Supplier Customer Ski...
Nature of Interest and Power Interest  Power Stockholder   -  Return/Dividend  - Exercising Voting Right - Capital Gain  -...
Secondary Stakeholder Business  Local Communities Central/Local Govt. General Public Business Support Foreign Govt . Socia...
Nature of Interest and Power Interest  Power Local Com .  - Employ Local residents  - Restricting operating licenses  - En...
Business Government Society Interactive Model of  Business-Government-Society
Interactive Model of Business Business Firm Local Communities Central/Local Govt. Foreign Govt. Social Activist Media Gene...
Business and Consumer <ul><li>Business  Consumer </li></ul><ul><li>Market </li></ul><ul><li>Monopoly </li></ul><ul><li>Oli...
Free Market System Business Firm Consumers Competitive Price Voluntary Exchange Supply Good & Services Demand Needs & Want...
Consumer Bill of Right <ul><li>Right to safety </li></ul><ul><li>Right to be informed </li></ul><ul><li>Right to choose </...
Protection to the Consumer <ul><li>Legal Liability to Consumer </li></ul><ul><li>Privity of contract </li></ul><ul><li>War...
Business and Community <ul><li>Request Made to Business </li></ul><ul><ul><li>Assistance for less advantages people </li><...
Business and Community <ul><li>Community Services Desired by Business: </li></ul><ul><ul><li>Complete Public Services </li...
Business and Government <ul><li>Assure good and beneficial relations between  business ant its stakeholder </li></ul><ul><...
Business Environment Corporate Managers Environmental Knowledge Corporate  Strategic Planning Copying With Public Policies...
Type of Business Environment <ul><li>External Environment </li></ul><ul><ul><li>Societal ( Macro ),  influence the entire ...
<ul><li>Internal </li></ul><ul><li>Structure </li></ul><ul><li>Culture </li></ul><ul><li>Resources </li></ul>Societal Envi...
Internal Environment <ul><li>Identify strength and weaknesses for responding to the external environment </li></ul><ul><li...
External Environment <ul><li>Identify opportunities and threats  for survival and future success </li></ul>Business Firm E...
Basic Strategies of Environmental Changes <ul><li>Inactive Strategy </li></ul><ul><ul><li>Do nothing </li></ul></ul><ul><l...
Linking Environmental Analysis To Planning Scanning Action Monitoring Forecasting Scenario Building Strategy Development I...
Upcoming SlideShare
Loading in …5
×

2 Stakeholder Approach & Environment

3,686 views

Published on

  • This presentation is very useful to understand the social, political and economical environment factors affecting an organisation.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

2 Stakeholder Approach & Environment

  1. 1. STAKEHOLDER and BUSINESS ENVIRONMENT
  2. 2. Schematic Presentation <ul><li>Business Firm View </li></ul><ul><li>Stakeholder Analysis </li></ul><ul><li>Business Interaction </li></ul><ul><li>Business Environment </li></ul>
  3. 3. Business Firm View <ul><li>Traditional View </li></ul><ul><ul><li>Business as Economic Institution </li></ul></ul><ul><ul><li>Business as Sociopolitical Institution </li></ul></ul><ul><li>Systemic View </li></ul><ul><ul><li>Business as Multipurpose Institution </li></ul></ul>
  4. 4. Traditional View <ul><li>Business as Economic Institution </li></ul><ul><li>Business as economic entity that interact with society only through transaction in the marketplace </li></ul><ul><li>Business as Sociopolitical Institution </li></ul><ul><li>Business as sociopolitical entity that interact with society through complex interaction for increasing wealth and prosperity of society </li></ul>
  5. 5. Business as an Economic Institution Business Firm Choice of Employees Uses of Resources Quantities of Output Price & Product Quality
  6. 6. Business as Sociopolitical Institution Business Firm International Environment Changes in Ideologies & Values <ul><li>Increased Govt. </li></ul><ul><li>Intervention: </li></ul><ul><li>Statutory Law </li></ul><ul><li>Admnistrative Law </li></ul>Upgrading of Ethical Standard Increased Influence of external or public Interest Group Changing Att.of Society toward Business Increased Importance of Internal Stakeholder Group Improved Communication & Increased Impt of Media
  7. 7. System View of Business <ul><li>Business as an living organism that interact with and affected by environment for economic and social motive ( multipurpose motive ) by using the limited resources </li></ul><ul><li>Key To Survival is </li></ul><ul><li>Capacity to adapt efficiently the changing condition posed by the environment </li></ul>
  8. 8. Business as Multipurpose Institution Market: Competition Stakeholder: Expectation <ul><li>Business: </li></ul><ul><ul><li>Economic </li></ul></ul><ul><ul><li>Social </li></ul></ul><ul><ul><li>Political </li></ul></ul><ul><li>Government: </li></ul><ul><li>Political Action </li></ul><ul><li>Legislative Act </li></ul><ul><li>Judicial Action </li></ul><ul><li>Regulatory Act </li></ul>Equity Efficiency Market Process Public Policy Process Economic Response Sociopolitical Response
  9. 9. Stakeholder? <ul><li>All the groups affected by a corporation’s decision and policies </li></ul><ul><li>Primary Secondary </li></ul>
  10. 10. Primary Stakeholder Business Employees (union ) Stockholder Wholesaler Retailer Competitor Creditor Supplier Customer Skill Material Lend Money Distribute Compete Money Capital
  11. 11. Nature of Interest and Power Interest Power Stockholder - Return/Dividend - Exercising Voting Right - Capital Gain - Exercising right to inspect book and record Employee - Stable employment - Strike - Fair pay - Union bargaining power - Safe and comfortable - Publicity Creditor - Repayment of loan - Calling in loan - Interest -Take over loan’s collateral Supplier - Regular order - Refusing to meet order - Paid promptly - Supplying to com[etitor Distributor - Good product quality - Buying from competitor - High reliable product - Boycotting company Customer - Fair exchange - Purchasing from competitor - Safe & reliable product - Boycotting company Competitor - Be profitable -Forcing to”keep up” - Gain a larger market - Charge lower price
  12. 12. Secondary Stakeholder Business Local Communities Central/Local Govt. General Public Business Support Foreign Govt . Social Activist Media Skill, Environment Social Demand Friendly Hostile Opinion Services Image, Publicity Regulation Tax
  13. 13. Nature of Interest and Power Interest Power Local Com . - Employ Local residents - Restricting operating licenses - Environment is protected - Lobbying government for - Local area is developed regulation of the company Social - Ensure that company - Publicizing the negative issues Activist conform to legal and - Lobbying government for ethical standard regulation of the company Media - Keep the public informed - Publicizing the negative issues on all issues - Monitor the company Business - Provide services and - Assist company in business Support information endeavor & dev. effort Government - Taxes - Regulation, licenses,& permit - Economic development - Boycotting company Foreign Gov . - Economic development - Permit to do business - Social improvement - Regulation General - Social value Protected - Support activist Public - Prosperity for society - Condemn or praise company - Risk minimized - Press government to act
  14. 14. Business Government Society Interactive Model of Business-Government-Society
  15. 15. Interactive Model of Business Business Firm Local Communities Central/Local Govt. Foreign Govt. Social Activist Media General Public Business Support Stockholder Employee Creditor Supplier Distributor Customer Competitor Market Non Market
  16. 16. Business and Consumer <ul><li>Business Consumer </li></ul><ul><li>Market </li></ul><ul><li>Monopoly </li></ul><ul><li>Oligopoly </li></ul><ul><li>Free Market </li></ul>
  17. 17. Free Market System Business Firm Consumers Competitive Price Voluntary Exchange Supply Good & Services Demand Needs & Wants Profit Satisfaction
  18. 18. Consumer Bill of Right <ul><li>Right to safety </li></ul><ul><li>Right to be informed </li></ul><ul><li>Right to choose </li></ul><ul><li>Right to be heard </li></ul>
  19. 19. Protection to the Consumer <ul><li>Legal Liability to Consumer </li></ul><ul><li>Privity of contract </li></ul><ul><li>Warranties </li></ul><ul><li>Tort Liability </li></ul><ul><li>Consumer Legislation </li></ul><ul><li>Provide consumer with better information </li></ul><ul><li>Protect consumer against possible hazards from product </li></ul><ul><li>Towards competitive pricing </li></ul>
  20. 20. Business and Community <ul><li>Request Made to Business </li></ul><ul><ul><li>Assistance for less advantages people </li></ul></ul><ul><ul><li>Support for air and water pollution control </li></ul></ul><ul><ul><li>Support for cultural and artistic activist </li></ul></ul><ul><ul><li>Employment and advancement of minority and women </li></ul></ul><ul><ul><li>Assistance in urban planning and development </li></ul></ul><ul><ul><li>Support of health care program </li></ul></ul><ul><ul><li>Donation </li></ul></ul>
  21. 21. Business and Community <ul><li>Community Services Desired by Business: </li></ul><ul><ul><li>Complete Public Services </li></ul></ul><ul><ul><li>Cooperative problem solving approach in working with mutual benefit </li></ul></ul><ul><ul><li>Equitable taxes </li></ul></ul><ul><ul><li>Cultural and recreational environment that support a balanced quality of life for employee </li></ul></ul><ul><ul><li>Adequate family recreational facilities </li></ul></ul><ul><ul><li>Etc </li></ul></ul>
  22. 22. Business and Government <ul><li>Assure good and beneficial relations between business ant its stakeholder </li></ul><ul><li>Regulating Empowering Controlling </li></ul>
  23. 23. Business Environment Corporate Managers Environmental Knowledge Corporate Strategic Planning Copying With Public Policies Linking Business Action to Social Values for need
  24. 24. Type of Business Environment <ul><li>External Environment </li></ul><ul><ul><li>Societal ( Macro ), influence the entire businesses in the same way and magnitude </li></ul></ul><ul><ul><li>Stakeholder , do not influence the business in the same way and magnitude </li></ul></ul><ul><li>Internal Environment </li></ul>
  25. 25. <ul><li>Internal </li></ul><ul><li>Structure </li></ul><ul><li>Culture </li></ul><ul><li>Resources </li></ul>Societal Environment Primary Stakeholder Secondary Stakeholder Stakeholder Environment Sociocultural Forces Technological Forces Political-Legal Forces Economic Forces
  26. 26. Internal Environment <ul><li>Identify strength and weaknesses for responding to the external environment </li></ul><ul><li>Corporate Structure </li></ul><ul><ul><li>The way of the corporation is organized in term of authority, work and information flow, communication </li></ul></ul><ul><li>Corporate Culture </li></ul><ul><ul><li>The collection of beliefs, expectation and value, shared by its members </li></ul></ul><ul><ul><li>Produce norms that shape the behavior of employees </li></ul></ul><ul><li>Corporate Value </li></ul><ul><ul><li>Explain the action taken with respect to an issue </li></ul></ul><ul><li>Corporate Resources </li></ul>
  27. 27. External Environment <ul><li>Identify opportunities and threats for survival and future success </li></ul>Business Firm Economic Politic Social Technology <ul><li>Interest rate </li></ul><ul><li>Unemployment </li></ul><ul><li>Inflation,GNP </li></ul><ul><li>Poverty Rate, etc </li></ul><ul><li>Demographic </li></ul><ul><li>Life style </li></ul><ul><li>Population Growth </li></ul><ul><li>Age Distribution </li></ul><ul><li>Social Value, etc </li></ul><ul><li>Political relationship, </li></ul><ul><li>processes, changes </li></ul><ul><li>Stability of Government </li></ul><ul><li>Regulation & Legal aspect </li></ul><ul><li>Social Value, etc </li></ul><ul><li>Product & Process </li></ul><ul><li>Innovation </li></ul><ul><li>Scientific Discovery </li></ul><ul><li>Etc </li></ul>
  28. 28. Basic Strategies of Environmental Changes <ul><li>Inactive Strategy </li></ul><ul><ul><li>Do nothing </li></ul></ul><ul><li>Reactive Strategy </li></ul><ul><ul><li>Environment changes first ant then organization responds to it </li></ul></ul><ul><li>Proactive Strategy </li></ul><ul><ul><li>Organization initiates changes and than environment altered </li></ul></ul><ul><li>Interactive Strategy </li></ul><ul><ul><li>Organization and environment are changing simultaneously in the same direction </li></ul></ul>
  29. 29. Linking Environmental Analysis To Planning Scanning Action Monitoring Forecasting Scenario Building Strategy Development Issues Management Contingency Planning Analysis: Opportunity Threats

×