BUSINESS ENVIRONMENT

1
BUSINESS ENVIRONMENT
Management Extra
2
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
•  

1
3
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.

2
4
AGENDA
3
5
THE CORPORATE ENVIRONMENT
4
6
STRATEGY
Strategy is about how we as a corporation get
to where we want to be from where we are now.
5
7
STRATEGY

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

6
8
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.
7
9
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.
8
10
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.
9
11
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 short-term contracts. They only come
together as a matter of convenience or
self-interest. Handy sees this as a cluster or
galaxy of mixed stars.
10
12
BOSTON CONSULTING GROUP MATRIX
High
?
Market growth rate
Low
High
Low
Relative market share
11
13
PORTERS FIVE FORCE MODEL
12