Global and European
  Business Environment :




               What is environment ?

               Christophe Benavent
               Professor – University Paris Ouest



26 avr. 2011          http://christophe-benavent.blogspot.com   1
Business environment




26 avr. 2011   http://christophe-benavent.blogspot.com
                                             2
Functional components
„   Customer Market -> downward markets
„   Financial resources -> macro-economics
„   Supply -> upward markets
„   Production and distribution technologies
„   Human resources
„   Legal and institutional environment
„   Environmental aspects : externalities
„   Public opinion and ethics : legitimacy
„   …

26 avr. 2011      http://christophe-benavent.blogspot.com
                                                3
The PESTEL model
„   Political
„   Economical
„   Sociological
„   Technological
„   Environmental
„   Legal




26 avr. 2011        http://christophe-benavent.blogspot.com
                                                  4
General and specific
environment
                                Macro

     Global environment                 Specific environment



General                                                        Task


          General environment             Local environment


                                Micro
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                                                     5
A system view of task
environment




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                                             6
A system view of general
environment




26 avr. 2011   http://christophe-benavent.blogspot.com
                                             7
The 2007 crisis system




26 avr. 2011   http://christophe-benavent.blogspot.com
                                             8
Environment uncertainty
„ A classical organizational variable
   ƒ   Dynamism
   ƒ   Heterogeneity
   ƒ   Munificence
   ƒ   Complexity
„ Exemples :
   ƒ organisations as reducing uncertainty ( buffering and
     smoothing) Thomson
   ƒ Contingency theory : Lawrence and lorsch
   ƒ Ressources Dependence Theory : complexity and
     network of stakeholder influence

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                                                     9
CAC 40




26 avr. 2011   http://christophe-benavent.blogspot.com
                                             10
Down Jones




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                                             11
Environment/strategy link

„ Different views
   ƒ The contingency view : adaptation view of
     environment (Lawrence and Lorsch)
   ƒ organizational Ecology : a determinist
     environment ( Hanan and Freeman)
   ƒ The enactement view : a constructed
     environment (Weick)
   ƒ The strategic management view : the
     modeled or choice environment ( Ansoff)

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                                             13
Action modalities

„ Assimilation


„ Accommodation


„ Sélection

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                                               14
Rent theory

                                  Domination    Hyper-
         Rentes Différentielles
                                  par les coûts compétitivité
         -économie d'échelle
         -économie d'expérience
         -économie d'envergure


                                                 Concurrence
                                  Focalisation   monopolistique

                                   Rentes de monopole
                                   -Différenciation
                                   -Domestication

26 avr. 2011          http://christophe-benavent.blogspot.com
                                                    15
Environment adaptation

                                    Selection            Reconfiguration
         Mobility
         The firm could change
         Its position and choose
         The environment



                                   Accommodation         Assimilation


                                     Market power
                                     The firm could influence,
                                     modify, model its environment

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                                                      16
The grain of environment

                                                  Polymorphist
                Specialist



Amplitude


            Mecanist                                 « Improvisist »



                                    frequency
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                                                       17
Processus
d ’apprentissage
                           Extensive



               Apprentissage              Apprentissage
               par l'échec                Théorique



                         Apprentissage
  Accidentel             par imitation                    Intentionnel


               Apprentissage              Apprentissage
               par l'usage                expérimental




                               Intensif
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                                                    18
Boundaries and frontier
General Field
                              Uncertainties
                Bridges



                            Internal field



                          Barriers

26 avr. 2011       http://christophe-benavent.blogspot.com
                                                 19
Field concept of
environment and Ecology




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                                             20
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                                             21
Trends


1. shifts in economic activity and growth between and within regions of the world;
2. increasing demand for goods and services among the very poor in emerging
   markets; (Bope)
3. a faster pace and wider locus of technological innovation;
4. Increasingly global labor markets : migrations ?
5. increasingly ubiquitous and inexpensive access to information and knowledge.




26 avr. 2011                http://christophe-benavent.blogspot.com
                                                          22

Mui1 what is environment

  • 1.
    Global and European Business Environment : What is environment ? Christophe Benavent Professor – University Paris Ouest 26 avr. 2011 http://christophe-benavent.blogspot.com 1
  • 2.
    Business environment 26 avr.2011 http://christophe-benavent.blogspot.com 2
  • 3.
    Functional components „ Customer Market -> downward markets „ Financial resources -> macro-economics „ Supply -> upward markets „ Production and distribution technologies „ Human resources „ Legal and institutional environment „ Environmental aspects : externalities „ Public opinion and ethics : legitimacy „ … 26 avr. 2011 http://christophe-benavent.blogspot.com 3
  • 4.
    The PESTEL model „ Political „ Economical „ Sociological „ Technological „ Environmental „ Legal 26 avr. 2011 http://christophe-benavent.blogspot.com 4
  • 5.
    General and specific environment Macro Global environment Specific environment General Task General environment Local environment Micro 26 avr. 2011 http://christophe-benavent.blogspot.com 5
  • 6.
    A system viewof task environment 26 avr. 2011 http://christophe-benavent.blogspot.com 6
  • 7.
    A system viewof general environment 26 avr. 2011 http://christophe-benavent.blogspot.com 7
  • 8.
    The 2007 crisissystem 26 avr. 2011 http://christophe-benavent.blogspot.com 8
  • 9.
    Environment uncertainty „ Aclassical organizational variable ƒ Dynamism ƒ Heterogeneity ƒ Munificence ƒ Complexity „ Exemples : ƒ organisations as reducing uncertainty ( buffering and smoothing) Thomson ƒ Contingency theory : Lawrence and lorsch ƒ Ressources Dependence Theory : complexity and network of stakeholder influence 26 avr. 2011 http://christophe-benavent.blogspot.com 9
  • 10.
    CAC 40 26 avr.2011 http://christophe-benavent.blogspot.com 10
  • 11.
    Down Jones 26 avr.2011 http://christophe-benavent.blogspot.com 11
  • 12.
    Environment/strategy link „ Differentviews ƒ The contingency view : adaptation view of environment (Lawrence and Lorsch) ƒ organizational Ecology : a determinist environment ( Hanan and Freeman) ƒ The enactement view : a constructed environment (Weick) ƒ The strategic management view : the modeled or choice environment ( Ansoff) 26 avr. 2011 http://christophe-benavent.blogspot.com 12
  • 13.
    26 avr. 2011 http://christophe-benavent.blogspot.com 13
  • 14.
    Action modalities „ Assimilation „Accommodation „ Sélection 26 avr. 2011 http://christophe-benavent.blogspot.com 14
  • 15.
    Rent theory Domination Hyper- Rentes Différentielles par les coûts compétitivité -économie d'échelle -économie d'expérience -économie d'envergure Concurrence Focalisation monopolistique Rentes de monopole -Différenciation -Domestication 26 avr. 2011 http://christophe-benavent.blogspot.com 15
  • 16.
    Environment adaptation Selection Reconfiguration Mobility The firm could change Its position and choose The environment Accommodation Assimilation Market power The firm could influence, modify, model its environment 26 avr. 2011 http://christophe-benavent.blogspot.com 16
  • 17.
    The grain ofenvironment Polymorphist Specialist Amplitude Mecanist « Improvisist » frequency 26 avr. 2011 http://christophe-benavent.blogspot.com 17
  • 18.
    Processus d ’apprentissage Extensive Apprentissage Apprentissage par l'échec Théorique Apprentissage Accidentel par imitation Intentionnel Apprentissage Apprentissage par l'usage expérimental Intensif 26 avr. 2011 http://christophe-benavent.blogspot.com 18
  • 19.
    Boundaries and frontier GeneralField Uncertainties Bridges Internal field Barriers 26 avr. 2011 http://christophe-benavent.blogspot.com 19
  • 20.
    Field concept of environmentand Ecology 26 avr. 2011 http://christophe-benavent.blogspot.com 20
  • 21.
    26 avr. 2011 http://christophe-benavent.blogspot.com 21
  • 22.
    Trends 1. shifts ineconomic activity and growth between and within regions of the world; 2. increasing demand for goods and services among the very poor in emerging markets; (Bope) 3. a faster pace and wider locus of technological innovation; 4. Increasingly global labor markets : migrations ? 5. increasingly ubiquitous and inexpensive access to information and knowledge. 26 avr. 2011 http://christophe-benavent.blogspot.com 22