BU111 Lecture Notes - Lecture 2: Viral Marketing, Corporate Social Responsibility, Outsourcing
19
BU111 Full Course Notes
Verified Note
19 documents
Document Summary
Process of scanning and evaluation the external environment. Identifying opportunities and threats: general environment; affects all businesses. Uber is happy when interest rates go up, clients go to them instead of cabs: specific environment; affects industry participants. General environment: pest (political, environmental, social and technological factors, identifies general trends and changes. Specific environment: porter"s five forces analyzes competitive pressure; predicts industry profitability. What to do look for in external analysis. Quick change anticipate: predictable or surprising, anticipate and plan contingency strategies. Elements: laws, regulations, taxes, trade agreements or conditions, political systems, political stability. Significance: protection of consumers, support/protection and regulation of domestic businesses, opportunity creation in foreign markets. *role the government plays a role in markets (in others more so than others) Elements: inflation/deflation, interest rates, employment rates, exchange rates, balance of trade, productivity. Significance: affect economic stability, employment, economic growth (measures: aggregate output, gdp, gnp) Elements: customs, values, attitudes, demographic characteristics.
