BE- Week 1,2 &3.ppt
- 2. Business Environment It consists of all those factors that have a bearing on the business, the strengths, weaknesses, internal power relationships and orientations of the organisation; government policies and regulations; nature of the economy and economic conditions; socio- cultural factors; demographic trends; natural factors; and, global trends and cross-border developments 2
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- 4. Forces Driving Industry Competition 4
- 5. Threat of Entry 5 Government Policy Economies of Scale Cost Disadvantages Independent of Scale Product Differentiation Monopoly Elements Capital Requirements
- 6. Rivalry among Existing Competitors Number of Firms and their Relative Market Share, Strengths etc. State of Growth of Industry Fixed or Storage Costs Indivisibility of Capacity Augmentation Product Standardisation and Switching Costs Strategic Stake Exit Barrier Diverse Competitors Switching Costs Expected Retaliation 6
- 8. Bargaining Power of Buyers The volume of purchase relative to the total sale of the seller The importance of the product to the buyer in terms of the total cost. The extent of standardisation or differentiation of the product Switching costs Profitability of the buyer (low profitability tends to pressure costs down). Potential for backward integration by buyer Importance of the industry’s product with respect to the quality of the buyer’s product or services. Extent of buyers’ information 8
- 9. Bargaining Power of Suppliers Extent of concentration and domination in the supplier industry Importance of the product to the buyer Importance of the buyer to the supplier Extent of substitutability of the product Switching costs Extent of differentiation or standardisation of the product Potential for forward integration by suppliers 9
- 10. Competitor Analysis Competitor analysis seeks to find answers to certain basic questions such as: Who are the competitors of the firm? What are the current strategies of the competitors? What are their future goals and likely strategies? What drives the competitor? Where is the competitor vulnerable? How are the competitors likely to respond to the strategies of others? 10
- 11. Porter’s Framework for Competitor Analysis Future Goals Assumptions Current Strategy Capabilities 11
- 12. Value Chain 12
- 13. SWOT Analysis 13
- 14. Organizations and Organizational Theories ‘Organisations are social arrangements for the controlled performance of collective goals.’ People Perform Collective goal Expertise, interest, specialism Hierarchy of authority Borders are clearly defined 14
- 15. Overview of organizational theories Classical theories Human relations’ theories Systems theories Contingency theories 15
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- 17. F. W. Taylor & Scientific Management Principles of Scientific Management, 1911
- 18. Henri Fayol – 14 principles
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- 23. Maslow’s ‘hierarchy of needs’
- 24. McGregor’s Theory ‘X’ and Theory ‘Y’
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- 27. Thank you. 27