1.5 external environment

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1.5 external environment by Mind Map: 1.5 external environment

1. Strategy to assess importance of major external influences and plan new strategies

1.1. Review objectives and strategies

1.1.1. Analysis by managers alone or with other workers and combined with SWOT (internal factors)

1.1.1.1. STEEPLE

1.1.1.1.1. Social

1.1.1.1.2. Technological

1.1.1.1.3. Economic

1.1.1.1.4. Environmental

1.1.1.1.5. Political

1.1.1.1.6. Legal

1.1.1.1.7. Ethics

2. Evolving society

2.1. Aging population and reduced birth rates, longer life expectancy

2.1.1. MAIN EFFECTS

2.1.1.1. smaller population in lower age

2.1.1.2. smaller workers and more numbers of dependants = higher taxes

2.1.1.3. population over the age of retirement

2.1.1.4. ADAPTATION TO

2.1.1.4.1. Patterns of demand

2.1.1.4.2. Age structure of the workforce

2.2. women increasing employment

2.3. improved education, increased literacy, skilled and adaptable workforces

2.4. job insecurity, temporary employment, levels of immigration = widening consumer taste

2.5. early retirement

2.6. rising divorce, more single person households

2.7. CHANGING PATTERNS OF EMPLOYMENT

2.7.1. increase in student employment

2.7.2. increase of women in employment

2.7.3. women take maternity and return to work

2.7.4. increase in part time basis = reduced fixed costs and flexibility

3. TECHNOLOGY

3.1. Tools machines and science industry

3.1.1. to develop products and research

3.1.1.1. OBJECTIVES FOCUSED ON IT

3.1.1.1.1. long term cost savings worth the investment, reduce operational costs

3.1.1.1.2. Reduced time for new products , gathering market info, speed up manufacturing, effective communication

3.1.1.1.3. Improving communication with stakeholders

3.1.1.1.4. Process improvement, enterprise resource planning systems allow managers to review info. Makes internal processes efficient and cost effective

3.1.1.1.5. Competitive advantage, rapid software simulations of products

3.1.1.1.6. Outsourcing non core functions to offshore companies

4. Labour relations can be damaged when technology isn't presented in a positive way

4.1. +

4.1.1. Accelerates communication

4.1.2. Computers analyse and process data

4.1.3. Managers obtain data frequently

4.2. -

4.2.1. Information overload = volume of info prevents good and accurate decision making

4.2.2. Power of information can be abused by an authority

5. ECONOMIC INFLUENCES

5.1. Changes result from government economic policies: fiscal policies and monetary

5.1.1. Economic growth and living standards

5.1.2. Low levels of inflation

5.1.3. balance of payments and imports and exports

5.1.4. low levels of unemployment

6. ENVIRONMENTAL INFLUENCES

6.1. determined by surrounding physical environment

6.1.1. threats

6.1.2. infrastructure

6.1.3. natural resources

7. POLITICAL INFLUENCES

7.1. Nature and stability of government

7.2. democracy and other forms of structure

7.3. ruler's main objectives

8. LEGAL CONTRAINTS

8.1. political changes

8.2. major policy changes

8.3. business competition laws

8.4. employment laws

8.5. consumer protection laws

9. ETHICAL INFLUENCES

9.1. advertising directly to children

9.2. Child labor

9.3. corruption in business practice