2. International Business Strategy LON301BUS The Strategic Environment Unit: 3 Knowledgecast: 2

3. Communicate an in-depth understanding of the complexity of the environment and its applications on decision-making process Assess current developments in the organisational environment and alternative responses related to strategy Demonstrate the ability to construct and present quantitative and qualitative data effectively by the application of IT skills and methodological techniques Module Learning Outcomes

4. The External Business Environment Layers of the business environment The organisation Competitors (or market) Industry (or sector) The macro environment

5. PESTEL Political Economic Sociocultural Technological Environmental Legal

6. Porter’s Five Forces Image Copyright www.vectorstudy.com/.../ porters_five_forces.png

7. External Changes and Value Creation Creating value is contingent on industry and market conditions The relation between the growth of market demand and the growth of industry capacity is central to value creation analysis Two possibilities exist:  Market demand outruns industry capacity  Industry capacity outruns market demand

8. Communicate an in-depth understanding of the complexity of the environment and its applications on decision-making process  If different management functions, such as marketing and finance were to undertake the analysis using the same tool would the ‘output’ differ? What are the implications of this? Assess current developments in the organisational environment and alternative responses related to strategy  How valuable are tools such as PESTEL or Porter’s Five Forces to businesses? Demonstrate the ability to construct and present quantitative and qualitative data effectively by the application of IT skills and methodological techniques  Tools such as these can be used to analyse and present both quantitative and qualitative data. Knowledgecast Summary

10. Environmental Audit – Part One Carry out an analysis of the internal business environment of your case study organisation using one of the tools/methods covered in this unit. Bring your preparatory research to the seminar. On the whiteboard your tutor will ‘populate’ the tool/method chosen drawing on your research. Seminar

11. Environmental Audit – Part Two Assessment Preparation – Research You have an opportunity to use this time to continue to gather information regarding the business environment of your case study organisation, which will be invaluable in preparing you for the first assignment. Assessment Preparation – Presentation Design You will also have an opportunity to use this time to design your presentation regarding the business environment of your case study organisation, which will be invaluable in preparing you for the first assessment. Ensure each member of the group understands and accepts their role and responsibilities. Group Activity