Chapter 1 Slide 37 Competitive Strategies Exceed customer expectations – Business is becoming customer-driven • Deliver faster (speed) – Service, new product introduction • Restructuring and empowerment – Responsibility, authority, autonomy, training, and equipment to front line • Concern for environment Chapter 1 Slide 38 Evolution of Business • Goods • Agricultural/Manufacturing • Manufacturing directly accounts for 17 percent of the Canadian economy Evolution of Business • Services are intangible products (i. e. , products that cannot be held in your hand), such as education, health care, insurance, recreation, and travel and tourism. Expect, then, to see more executives leading in the mode of Howard Schultz at Starbucks, and more organisations shifting priorities in the way that Nike’s Considered Design. To management’s surprise, a careful study found several other countries able to support an operation of the proposed scale ($60 million in capital investment and 250–300 employees) which offered savings over China ranging from 7 to 22 percent. Almost sold out! You can get your custom paper from To stay one step ahead of your competition, sign up today to our exclusive newsletters to receive exciting insights and vital know-how that you can apply today to drastically accelerate your performance. Top 8 External Factors Affecting Business Environment: External Environment Factor Affecting Business # 1. • Risks can present opportunities as well as threats to a a business. Business environment is dynamic in nature. Businesses grow and prosper in a healthy environment. Rising production costs and increasing competition for talent, along with intellectual property risk and dwindling government incentives. It is important to get as much education as possible to prepare for knowledge-oriented jobs. You have entered an incorrect email address! Monitor your environment and put processes in place to collect, aggregate, analyze and react to information from various sources, both inside and outside your company. Eamonn Kelly is a Director at Deloitte Consulting LLP, and the Chief Marketing Officer of its Strategy and Operations practice. Chapter 1 Slide 36 Competitive Environment • Competing by giving employees decision-making authority: empowerment. All these factors are dynamic and beyond the control of a firm; its success will depend to a very large extent on its adaptability to the environment. – Effectiveness means producing the desired result. How Quick Loans are Changing the Game for Borrowers. • Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable. As just one indicator of the momentum of this trend, the average number of daily visitors on social networking sites increased from 46 million per month in 2007 to 90 million per month in 2011, while the percentage of the typical user’s day spent on social media increased from 7.4 percent in 2007 to 14.4 percent in 2010. • Examples of laws include the Canada Small Business Financing Act, the Consumer Packaging and Labeling Act, the Trade Unions Act. Dynamic: The environment in which the business operates changes continuously because there is a wide variety of factors... Complex: There are many forces, events and conditions that … Trends to Strategy to Execution Monitoring trends in the business environment is interesting, but only valuable if it informs strategy and results in action. But it was hard to even begin that process. Heifetz usefully outlines the three situations in which problem solvers find themselves. In a recent Deloitte survey of 250 business executives, an overwhelming majority concurred that the impact of environmental, social and governance issues on their strategies, products and services, and operations would grow in the next two years. Business Environmental Dynamism Environmental dynamism refers to the volatility and unpredictability of the external environment of a company (3). Chapter 1 Slide 8 Risk and Risk Events • Risk has two primary components for a given event: • A probability (likelihood) of occurrence of that event • Impact of the event (expected value of the risk event or amount at stake) Risk = f(Probability, Impact) event In general, as either the probability or impact increases so does the risk. Today’s turbulent business environment, characterised by rapid technological changes and increased globalisation, has swept away industry and market conditions that previously defined competitive conditions. The nature and boundaries of ‘the firm’ have long been evolving. Role of entrepreneurship in wealth creation – Canada’s wealthiest citizens got their $$$ as a result of having entrepreneurial spirit. Looking ahead, these new emerging markets could become significant B2B and B2C growth opportunities for multinationals from developed countries. • Pleasing all stakeholders is not easy and requires balancing many factors. Consumers don’t only make use of a changing toolkit; on a deeper behavioral level, the tools are changing them. Of course no automotive company today would feel the need for such vertical integration. By continuing we’ll assume you’re on board with our cookie policy, The input space is limited by 250 symbols, Managing Within the Dynamic Business Environment Legal & Regulatory Economic Competitive Technology Social Learning Objectives 1. Download the digital edition of The European Business Review from Zinio. Chapter 1 Slide 7 Risk and Rewards • Rewards and risk are RELATED. Chapter 1 Slide 12 Responding to Various Business Stakeholders Chapter 1 Slide 13 Stakeholders: Those Who Stand to Lose or Gain The challenge for companies in the 21st century will be to BALANCE s much as possible, the needs of ALL stakeholders. • Examples include forming a joint venture (JV), Strategic Alliances, etc. • Outsourcing means contracting with other companies to do some or all of the functions of a firm, such as production or accounting. Dynamic: Business environment is highly flexible and keep changing. Definition: A business environment is a set of elements closely involved with a business’ activities. Business’s profit/risk assumption – Since not all businesses make a profit, starting a business can be risky. • The Internet aids company operations. Environmental forces influence business … • Telecommuting, teleconferencing and other tools help human relations and globalization. Manual transmission: what should your company put in its employee handbook? The dynamics of the environment indicate the extent … • Service Industries • Future??? But these are also now evolving – towards what is sometimes known as ‘ecosystems’ or ‘value webs’, within which multiple actors create value together with declining levels of formal control over one another’s actions. The need for bold strategies to capitalise on the dynamism of our times has never been greater. It is considered as the 98th most valuable brand globally. Chapter 1 Slide 27 Technological Environment E-commerce • There are two major types of e-commerce transactions: – business-to-consumer (B2C) – business-to-business (B2B) Chapter 1 Slide 28 Technological Environment E-commerce • B2G means the business that companies do with government agencies and departments to supply goods and services. • To meet the needs of customers, firms must give their front-line workers (office clerks, front-desk clerks at hotels, salespeople, etc. ) • Risk exists in all business. And they increasingly draw on the wisdom of the crowd – and more particularly, thanks to social media, a crowd that is really My Tribe. (2016, Dec 16). This neuroplasticity turns out to be an apt metaphor for markets. Dynamic business strategies require businesses to pay close attention to a variety of sources, both from business operations and stakeholders point of view. Technology, consumer tastes, laws and regulations, political leaders, and international conditions are all changing rapidly and d… Are traditional accounting budgets still relevant in the modern dynamic business environment? Dynamism and Discontinuity: Eight Trends in the Business Environment that will Shape... Had our client been familiar with leadership scholar Ron Heifetz’s work, he might have described his current predicament as a ‘Type Three’ problem. Here again, we see history in motion. For the world’s largest beer makers, for example, a rival like Turkey’s Anadolu Efes is surprisingly formidable, and not only because of its aggressive growth strategy and proximity to home markets. Dynamic nature: Business environment is dynamic in that it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. Managers have time to monitor and respond to changes in a deliberate manner. It also employs novel practices to hedge risks, manage operations, and build brand loyalty. Chapter Summary 1. Retrieved from https://graduateway.com/managing-within-the-dynamic-business-environment-pdf/, This is just a sample. These are the situations where businesses are feeling pain or anxiety but can’t diagnose the cause well enough to even begin the analysis that will point to a course of action. As a potential business owner, you should do research to find the right balance between risk and profit. Chapter 1 Slide 5 Earning a Buck: Risk Reward Trade-Offs • Starting a business involves risk. • When you consider Canada’s wealthiest citizens, you will find that they arrived at their wealth as a result of this entrepreneurial spirit. Identifying these is critical to understanding and addressing the new Type Three issues arising. Chapter 1 Slide 27 Technological Environment E-commerce • There are two major types of e-commerce transactions: – business-to-consumer (B2C) – business-to-business (B2B) Chapter 1 Slide 28 Technological Environment E-commerce • B2G means the business … • Political stability is important—it can affect domestic and international business. Burberry is listed on the London Stock Exchange. However, all micro forces may not have the same effect on all firms in the industry. We saw this first in R&D and operations, but the same shift is happening in other managerial functions such as marketing, finance, and HR. Recent years have brought real-time price checking, daily deals, self-designed rewards programs, mobile phone-based payment systems, ubiquitous rating sites, and all that social media has to offer. – Diversity, Demographic changes, Family • The Green Movement – Environmental concerns – New product opportunities Chapter 1 Slide 31 Social Environment The Aging Population More people are living longer due to: • better medical knowledge and technology • better health habits, including: – proper nutrition – more exercise – a reduction in the number of people who smoke Chapter 1 Slide 32 Social Environment, Chapter 1 Slide 33 Social Environment Managing Diversity • Canada has a strong multicultural population. Type Three problems stymie companies until managers can find a way to frame them and tame them. All you need to do is fill out a short form and submit an order. Where Does Resilience Come From? Many global companies are responding by developing country-specific talent strategies and HR programs. Of course no automotive company today would feel the need for such vertical integration. Had our client been familiar with leadership scholar Ron Heifetz’s work, he might have described his current predicament as a ‘Type Three’ problem. Internal Business Environment. For purposes of strategic planning, an environment is dynamic in nature if it is affected... Strategic Management in Dynamic Environments. Trend 6: Manufacturing beyond China A more surprising trend, even for many manufacturing executives, may be this one: China is steadily losing its standing as the default choice for offshore manufacturing. Certain services may not be available to attest clients under the rules and regulations of public accounting. But they are also producing new competitors, sometimes playing by different rules. – Information is not the same as knowledge. 2. "You must agree to out terms of services and privacy policy", Don't use plagiarized sources. The need for bold strategies to capitalise on the dynamism of our times – combined with excellent, timely execution of evolving operational imperatives – has arguably never been greater. Managers must react quickly and organizations must be flexible to respond. Companies must adjust business practices to compete in the global business world • New technologies, online shopping, research and development, and global access. 3. TableTop and Covid19 – It’s No Longer An Easy Game! • Examples: – Tradable currency – Minimum taxes and regulation – Imports and exports – Employment levels and productivity – Interest rates, Exchange rates, Inflation, Recession Chapter 1 Slide 24 Technological Environment • Technology refers to inventions or innovations from applied science or engineering research. 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