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B207 - Globalisation - Coggle Diagram
B207 - Globalisation
analysis of the business environment: what strategy?
external environment
All factors outside the organisation
microenvironment
Immediate environment, including customers, competitors, suppliers and distributors
Markets change rapidly: new competitors, technologies, legislation and evolving customer needs.
macroenvironment: Contains general factors likely to affect organisations
social/culture
This concerns social attitudes and values.
economic
The microeconomic environment.
Economic factors that are specific to a particular organisation.
The macroeconomic environment.
National and international economic situation in which a business operates.
political
Major events affecting the whole of the business community
Minor events affecting just one part of organisations
technological
STEEPLE analysis
Additional elements to the macroenvironment elements
Environment (ecological) factors
Legal factors
Ethical factors
internal environment
All resources and capabilities in the organisation
overseas markets
Outsourcing
Delegating business processes to another company, but keep responsibility.
Reasons
Increase variable cost element
Access to skills
Grow revenue
Improve quality
Conserve capital
Innovate
improve focus
reduce costs
Offshoring
Running a portion of business operations in another country.
Risks
Currency
legal system
political or economic instability
Quality and reliability of services
Language and culture
damage to the brand
Distance
International trade