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Business Management, image, image, image, image, image, image, image,…

- - - - If two companies join forces and form a bigger combined business we
        call it a merger.
    - - Two or more businesses join forces to finance a new business venture or product. They agree to combine resources for a specific goal and over a finite period. They complement each other.
    - - A strategic alliance is an arrangement between two companies to undertake a mutually beneficial project while each retains its independence.
    - - A franchise is an authority that is given by an organization to someone, allowing them to sell its goods or services or to take part in an activity which the organization controls.
    - - Globalization is the process by which the world’s regional economies are becoming one integrated global unit.
    - - A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Therefore, operate, own and control resources outside their country of origin.
- - - - Useful tool to assess the impact of the external environment on an organization’s activities.
    - - Social
        
        Attitudes to foreign products and services
        
        Language
        
        Consumer leisure time
        
        Roles of men and women
        
        Demographics
        
        Living standards
        
        Education standards
      - Technological
        
        Technology improvements
        
        Internet access
        
        Computer usage
        
        Infrastructure
        
        R&D costs
      - Economic
        
        Interest rates
        
        Exchange rates
        
        Rate of inflation
        
        Employment levels
        
        GDP
        
        Consumer spending power
        
        Trade tariffs
      - Ethical
        
        Ethnic and religion issues
        
        Corruption
        
        Transparency
        
        Codes of business behavior
        
        Fair trade
      - Political
        
        Tax policies
        
        Trading agreements
        
        Government stability
        
        Product labeling requirements
      - Legal
        
        Regulations
        
        Employment laws
        
        Health and safety legislation
        
        Competition laws
      - Ecological
        
        Environmental regulations
        
        Depletion of renewable resources
        
        Global warming
        
        Organic farming
        
        Carbon footprint
- - - - Interests
        
        Employees and unions
        
        Focus on protecting their rights and
        working conditions.
        
        Supervisors
        
        Focus on organizing tactical objectives and
        formulating operational objectives.
        
        Shareholders
        
        Focus on returns on their investments.
        
        Senior managers
        
        Focus on the strategic objectives for their
        functional areas.
        
        Middle managers
        
        Focus on the tactical objectives for their
        functional areas.
    - - Interests
        
        Goverment
        
        Focuses on how the business operates in the
        business environment.
        
        Suppliers
        
        focus on maintaining a stable relationship.
        
        Customers
        
        Focus on the best product that
        meets their needs.
        
        Community
        
        Focuses on the impact of the business in the
        local area.
        
        Financiers
        
        Focus on returns on their investments.
        
        Pressure groups
        
        Focus on how the business impacts on their
        area of concern.
        
        The media
        
        Focuses on the impact of the business in terms of
        news stories.
- - - - Uses the management of change concept to focus on the factors working for and against a planned change in an organization.
      - Benefits
        
        Gives a clear answer
        to a difficult decision
        
        Is flexible and can be applied to many situations
      - Limitations
        
        Involves interpretations in determining which factors to include
        
        Is based on mainly qualitative data, not quantitative issues
    - - Give the project managers a clear overview of the whole project.
      - Benefits
        
        Gives a clear picture of current progress of the various tasks
        
        Allows managers to plan the use of resources to complete the project in the most efficient manner
      - Limitations
        
        Is based on estimates of the
        timing of each task
        
        Is difficult to follow when applied to very complex projects
    - - Is a diagram that sets out the options connected with a decision and the outcomes and economic returns that may result.
      - Benefits
        
        It presents a visual representation of decision options.
        
        Communication and cooperation between departments is
        improved.
      - Limitations
        
        The information gathered may be inaccurate as the
        process relies on estimates.
        
        The external environment is constantly changing, which
        may invalidate findings.
    - - Diagram designed to show the cause and effects of qualitative problems.
      - Benefits
        
        It is flexible – applicable to
        virtually any situation
        
        Can highlight many factors before singling out the most significant
      - Limitations
        
        May show causes of a problem but not show specific solutions
        
        Can be divisive and lead to arguments