BUSINESS ENVIRONMENT

Management Extra

OBJECTIVES
By the end of this workshop you will:

have explored the nature of organisations know how an organisation defines its mission and
values, and the impact of these on strategic objectives

have examined cultural and structural types and

identified the culture in your own organisation

understand the impact of internal factors on

organisational success

OBJECTIVES CONT.

be able to analyse how well your own organisations

products/services are performing in the marketplace

be able to analyse the competitive nature of your own

industry

be aware of the impact of technology on an organisation have devised a personal action plan.

AGENDA
Welcome and introductions Session 1 Session 2 Session 3 Session 4 Session 5 Session 6 Session 7 Aims and objectives Review or icebreaker Focusing on your organisation Break Developing strategy Organisational structure and culture The internal environment

Lunch
Portfolio analysis Industry analysis Break Session 8 Session 9 The impact of technology Review and action planning

THE CORPORATE ENVIRONMENT

macro environment political forces economic forces

industry environment market internal environment suppliers

inputs
competitors

transformation process the organisation regulatory and professional groups

customers outputs

Technological and ecoenvironmental forces

social and legal forces

STRATEGY
Strategy is about how we as a corporation get
to where we want to be from where we are now.

STRATEGY
Strategy is about:

the big picture long-term direction the scope and focus of business activities responding to changes in our environment.

STRUCTURAL TYPES Power

Handy likens this to a web. The boss is the key to advancement, not 'titles' or a hierarchy. Do well and you advance fast. Mess up, and you could be out altogether.

STRUCTURAL TYPES Role

The role structure is sometimes called a bureaucratic one, though this is perhaps only where the role culture is taken to extremes as in government departments. In a role structure, everyone has their designated job descriptions, procedural handbook, accountabilities sheet, hierarchical career path, reward structure and so on. Handy sees this as a sturdy Greek temple.

STRUCTURAL TYPES Task

This structure is associated with a flexible, project based/matrix structure. Handy likens it to a net. Project groups or teams are formed as the need arises, and are disbanded once their task is finished. It is very adaptable, egalitarian, and quick to respond. Microsoft uses a task structure.

STRUCTURAL TYPES Person

This is also egalitarian, though you wouldn't say it was team based. Individuals are independent, and don't feel any particular loyalty. Like consultants in the NHS, or computer programmers who work on shortterm contracts. They only come together as a matter of convenience or self-interest. Handy sees this as a cluster or galaxy of mixed stars.

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BOSTON CONSULTING GROUP MATRIX

High

?
Low Low Relative market share High

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PORTERS FIVE FORCE MODEL

Threat of new entrants Bargaining strength of suppliers Competition among existing industry businesses Threat of substitute products Bargaining strength of buyers

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