Business environment critical analysis internal external

External Business Environment Internal Business Environment... External Biz Environment Analysis  Socialcultural environment factors  Economic environment factors  Political/Legal env

External Business Environment Internal Business Environment

External Biz Environment

Analysis

 Socialcultural environment factors

 Economic environment factors

 Political/Legal environment factors

 Technology environment factors

 Global environmental factors

By studying the external business environment,

firms identify what they might choose to do.

Socialcultural environment factors

Economic environment factors

Political/Legal environment factors

Technology environment factors

Emerging Asia –Latest update

Discussion research on

Emerging Asia

by ANZ Bank

Emerging Asia –Latest update

 China is overheating, Q1 GDP growth surge to 11.9% (y/y) and inflation pressures continue to

mount The authorities have launched a series of measures to curb property speculation but action

is clearly needed on the interest rate and

exchange rate fronts

Emerging Asia –Latest update

 Elsewhere in Asia the picture is mixed but broadly positive Domestic demand looks generally strong, intra-regional trade

continues to drive exports (with some help from global demand for electronics) and

inflation remains benign in most

economies.

Opportunities and Threats

O&T’s posed by:

Managing External Environment Risk

Col 1 Col 2 Col 3 Col 4 Col 5

External Environment

Risk type

Probalility of risk occurrence

Adverse impact of occurrence

Estimated Risk Score

Risk mitigation Actions

Risk Management in Your Company

external business environment)

Internal Biz Environment Analysis

 Resources

 Capabilities

 Core Competencies

By studying the internal environment, firms

identify what they can do

The foundation of many

capabilities lies in:

 The unique skills and knowledge of

a firm’s employees

 The functional expertise of those employees

Capabilities are often developed in specific

functional areas or as part of a functional area.

Capabilities

Functional Areas Capabilities

Distribution Effective use of logistics management techniques

Human resources Motivating, empowering, and retaining employees

Management Effective and efficient control of inventories through

information systems point-of-purchase data collection methods

Marketing Effective promotion of brand-name products

Effective customer serviceInnovative merchandisingManagement Ability to envision the future of products

Effective organizational structureManufacturing Design and production skills yielding reliable products

Product and design qualityMiniaturization of components and productsResearch & Innovative technology

development Developing sophisticated technology control solutions

Rapid transformation of technology into new products and

Managing Internal Environment Risk

Col 1 Col 2 Col 3 Col 4 Col 5

Internal Environment

Risk type

Probalility of risk occurrence

Adverse impact of occurrence

Estimated Risk Score

Risk mitigation Actions

Total Business Environment Analysis

internal business environment analysis.

thinking;

should be made

Risk Management in Your Company

external and internal business environment)

THANK YOU