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TMA 2 Notes - Coggle Diagram
TMA 2 Notes
STEEPLE FRAME WORK FOR LOTUS
Socilogical Factors
Technological factors
Economical Factors
Environmental Factors
Political factors
Legal factors
ACTIVITY 6.8
https://learn2.open.ac.uk/mod/oucontent/view.php?id=2523370§ion=6
VUCA
Volatile
Uncertain
Complex
Ambiguous
Taxes might be lower in ne area but then be higher in another area - e.g. Wages maybe higher for consumers to be able to spend but employers pay higher national insurance forcing them to put prices up further
Experimentation - e.g. fewer staff employed with senior managers being more hands on
Complexities such as European companies entering China that has different laws and regulations. It can also be a complicated network where relationships between businesses and policy makers are intertwined 'relationships among businesses and policy makers (Magnier, 2016)'
Response - to have the ability to restructure and change the internal processes e.g. in order to be able to form a joint venture entry to China (ChinaAutoWeb, n.d.).
Uncertainty - e.g. late government budget
Response - researching useful information and fact finding using reliable data and specialised news reports
frequent change - unable to predict
Response is agility - to be able to change approach quickly (Bennett and Lemoine, 2014).
https://learn2.open.ac.uk/mod/oucontent/view.php?id=2523370§ion=5.5
Coined in the 1980s by the US Army after the cold war. It was then adopted by scholars and used in strategic management to describe challenges in the macro environment
According to Bennett and Lemoine (2014) the VUCA framework is able to serve two purposes. The first is that it outlines the challenges and the 2nd is that it helps forms possible responses - agility - restructuring - experimentation
MACRO ENVIRONNMENT
Macro environment is the external impacts such as economic and political factors
Meso environment = things related to the industry
Meso/Macro Diagram -
https://learn2.open.ac.uk/mod/oucontent/view.php?id=2523370§ion=3
COMEPITVE AND COMPETITION FORCES