|| MM10510 |
|| INTRODUCTION TO THE BUSINESS ENVIRONMENT |
|| 2004/2005 |
|| Dr Leng K L Lim |
|| Semester 2 |
| Course delivery
|| Lecture || 15 Hours |
|Assessment Type||Assessment Length/Details||Proportion|
|Semester Exam||2 Hours ||100%|
|Supplementary Exam||2 Hours ||100%|
Having followed this module the student should be able to:
Define the term Business Environment.
Illustrate the Business Environment with the use of conceptual models.
List the different elements that comprise the Business Environment.
Critically analyse the influence of the different elements of the Business Environment on the company.
Understand the forces at work in the organisation's external and internal environment.
Understand the changes which have taken place in the internal and external environment and how they will affect the company.
Familiar with the various forms of g overnance that organisations can adopt.
Apply the value chain to product development.
Familiar with the kinds of issues (ethics; innovation) that organisations must deal with when resonding to external and internal forces.
This module introduces a variety of tools, concepts and techniques that are used to understand the internal and external business environments in which businesses and organisations operate. Some business and managerial key issues that organisations face on a day-to-day operation will also be discussed. The following areas will be addressed:
the number of interrelated environmental forces found in different types of organisation and in the political, economic, social, technological, legal, ecological and competitive environments;
the dynamic nature and complexity structure of the competitive environment and how they affects both the level of competition character and the importance of the European Union to the organisations;
the internationalisation of markets with particular reference to the EU involvement and the macroeconomic factors of employment, economic growth, low inflation and the balance of trade, interest rate changes and the removal of trade barriers;
a broad view of general technologies affecting organisations, the distinctions between knowledge and innovation, research and development, advanced manufacturing technology and management of technology;
the relationship in different cultural contexts and the complex interactions between organisations and society and community;
the different approaches adopted by businesses towards environmental and ethical issues, the impact of these upon consumers and the extent of consumer power in respect of ecological issues;
the key political issues, political philosophies regarding the role of government, the amount of democratic representation and the potential impact of governments and international bodies on organisations;
the nature of law, the broad legal requirements and issues controlling businesses behaviour and process;
the nature of change in business environment and organisational, individual, group and government responses to environmental dynamism.
Business Environment is a broad area and comprises of internal environments and externals environments in which business organisations operate. It deals with the issues, forces, factors and influences that companies face in their daily operational activities and business strategies.
Introduction to the Business Environment- From PEST to STEEP to PESTLE Analysis
Environmental stakeholders, forecasting, planning, analyses, organisational structure and strategy
The Competitive Environment
Market economy and structures, price mechanism, nature of products and services, industry competitive advantage, competition, economies of scale and contestable markets
The International Economic Environment
Macroeconomic goals, growth and structural change, economic cycles, unemployment, international trade, currency markets, inflation and deflation
The Technological Environment
Research and development, technology, knowledge, technological change and competitiveness, society and ethics in technology, technology indicators and labour
The Cultural, Demographic and Social Environment
National culture, convergence and divergence, business practices, population, migration, dependency, family development, lifestyle, organised labour and changing work trends
The Ecological Environment
Environmental pollution, externalities, equilibrium, sustainable development, environmental impact assessment, environmental contexts and options, the consumer and ethics
The Political Environment
Sovereignty, levels of government, institutions, cooperation and integration, risk, stability and liberalisation
The Legal Environment
Sources of law, consumer law, codes of conduct, stakeholder theory, business ethics, ecommerce and internet security
Challenges and Changes
Dynamism, complexity, uncertainty, turbulence, chaos, long-term planning, environmental scenarios, flexible operation structure, social inclusion and exclusion
** Recommended Text
Brooks, I, Weatherston, J and Wilkinson, G (2004) The International Business Environment
** Supplementary Text
Brooks, I and Weatherston J (1994) The Business Environment
2nd edition. Prentice Hall, UK
Johnson, G and Scholes, K (2002) Exploring Corporate Strategy
6th edition. Prentice Hall
Worthington, I and Britton, C (2003) The Business Environment
4th edition. Prentice Hall, Europe
This module is at CQFW Level 4