Environemnt And Economics Flashcards
Types of environment
General (External)- PESTLE
Competitive (Micro)- Porters five forces
Internal environment- people, finance, power, culture, structure, tech etc
What is your focus
What is the organisations output
Which industry
Global
Regional
Country
Reasons for analysis
Assumptions about their environment affect how managers work
Analytical models help analyse managers contexts and enable you to question systematically
The assumptions that guide action
Whether they accurately reflect the context
Possible alternative views
The limitations of any one view
Political environment
Less predictable than other external factors
Governments are democratic (more transitory) or authoritarian (less transitory)
Gov aims to control economy and plans how to use their resources
Aims to provide productivity and a positive BOP
They do this my making laws and employing policies
Restricted by terms of office, stability and resources available
Control of the economy
Command - all production and trade controlled
Mixed- some production controlled but most demand led
Free market- all production is demand and supply led
Economic elements to consider
Welfare
Productivity
Growth
Economic policies
Fiscal
Monetary
Supply side
Government economic reorganisation
Changes that are made to meet new demands
Some industries naturally decline so organisations need to be encouraged to move into new growth industries
Organisations who invest in new tech generate productivity and drive econ growth
Training should be encouraged to make sure the labour can respond to changes
Scarcity
Infinite wants limited resources to satisfy
What to produce
Who to produce for how and where to sell it
Open economy
Money out
Imports
Gov tax
Money in
Exports
Gov spending
Economic measures
GDP
GVA (gross value added) -GDP less indirect taxes plus subsidies on goods
GNP -
Social
Demographics
Culture
Societies primary needs
Society structure
Education
Technological
Leek of tech affects business opps
Comms need an infrastructure to support it
Tech advancements need money to be developed and support for their adoption
Ecological or environmental
Main concerns about environment
Laws?
Active groups
Attitudes to ethical behaviour
