Chapter 2 - Organisation Environment Flashcards
What is a a Macro environment and what model can be used to analyse a businesses Macro Environment
PESTEL
What are the 6 elements of PESTEL
Political, Economical, Social, Technological, Environmental, Legal
Why are certain industries more successful in certain nations- what model can be used?
Porters Diamond
What are the elements of Porters Diamond
Factor conditions, Demand Conditions, Relating Industries, Firms strategy structure and rivalry
What is Factor Conditions
Basic and Advanced. Basic = Labour, Climate, Natrual Resources. Advanced = Education of Workforce, Development, Technology and research
What is Demand Conditions
Customer Taste and economies of scale
How to assess an industry or sector- which model can be used
Porters 5 Forces
Threat of new entrants - what are the barriers
Patent Rights, Access to resources (capital), product differentiation, switching costs
Bargaining power of suppliers depends on
Number of suppliers, Threat to suppliers industry, numbers of customers in industry, switching costs, selling skills
Bargaining power of customers depends on
Volume brought (Economies of scale), scope of substitution easy to switch, important of quality
Threat from substitute are
Similar products or business
Competitions and Rivalry are?
Market Growth, Buyers ease of switching, price wars, exit barriers
Outline Linear Regression and advantages/disadvantages
Relationship between two variables, not necessary both are directly related, a lot of data needed, reliable data required, time consuming, hard to gather data, assumes past is relatable to future
Outline Time series analysis disadvantages and advantages
Seasonal patterns, widely understood, easy, only focused on time and ignored other factors, past is not reliable
What is Scenario planning
“What ifs” - potential future conditions
