Chapter 5: Micro, Macro & Market. Environments. RECAP : WHAT IS MACRO ENVIRON?. External Factors influencing a business Mangt has NO CONTROL over them Events r often BIG & COMPLEX Examples: Tsunami (affects whole country/world or community)
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Chapter 5: Micro, Macro & Market
External Factors influencing a business
Mangt has NOCONTROL over them
Events r often BIG & COMPLEX
Examples: Tsunami (affects whole country/world or community)
Identifying MACRO factors is done through PESTLE
EXTENDED PESTLE INCLUDES EXTRA:
Very specific plan of action
To effectively use resources
To achieve organisation objectives
ADVANTAGES of strategies:
Ensures CONSISTENCY in decision making
DIFFERENTIATESmngtROLES & responsibilities
Puts broader economy into perspective
Anticipates CHANGES in environments
Helps create COMPETITIVE ADVANTAGE
IDENTIFY various strategic options available
EVALUATE & Analyse viability of each option- RANK in order
PLAN implementation of chosen strategy
IMPLEMENT chosen strategy
MONITOR & CONTROL- manage changes
EVENTS are from Trends OR Crisis
Trends r PREDICATABLE- pre-empt what’s happening & plan ahead: Environmental Scanning
Learn from DEVELOPED nations
Seasonal- learn for next time
Pre-deciding“WHAT WOULD HAPPEN IF...”
Assess POTENTIAL physical 0r health RISKS
Put contingency plans in place
Eg. Insuranceco.s use this to det. Yr RISK PROFILE
Eg. FACTORY uses this to have a plan in the event of THREAT.
Would be a detailed plan
In the event of emergency, Ees feel more in control as they know what to do, and who is in charge of what area of responsibility.
Graphically shows options for COMPARISONbetw diff options avail.
Promotes logical decision making
Helps CLARIFY avail options
Benefit is poss options r QUANTIFIED so each decision process can be CALCULATED and a value reached that shows PROBABILITY success of each option.