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STAKEHOLDER and BUSINESS ENVIRONMENT
Schematic Presentation ,[object Object],[object Object],[object Object],[object Object]
Business Firm View ,[object Object],[object Object],[object Object],[object Object],[object Object]
Traditional View ,[object Object],[object Object],[object Object],[object Object]
Business as an Economic Institution Business Firm Choice of  Employees Uses of Resources Quantities of Output Price & Product Quality
Business as Sociopolitical Institution Business Firm International Environment Changes in Ideologies & Values ,[object Object],[object Object],[object Object],[object Object],Upgrading of  Ethical Standard Increased Influence of external or public Interest Group Changing Att.of Society toward Business Increased Importance of Internal Stakeholder Group Improved  Communication & Increased Impt of Media
System View of Business ,[object Object],[object Object],[object Object]
Business as Multipurpose Institution Market: Competition Stakeholder: Expectation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Equity Efficiency Market Process Public Policy Process Economic Response Sociopolitical  Response
Stakeholder? ,[object Object],[object Object]
Primary Stakeholder Business  Employees (union ) Stockholder Wholesaler Retailer Competitor Creditor Supplier Customer Skill Material Lend Money  Distribute Compete  Money Capital
Nature of Interest and Power Interest  Power Stockholder   -  Return/Dividend  - Exercising Voting Right - Capital Gain  - Exercising right to inspect book and record Employee   -  Stable employment  - Strike - Fair pay  - Union bargaining power - Safe and comfortable  - Publicity Creditor  - Repayment of loan  - Calling in loan - Interest  -Take over loan’s collateral Supplier  - Regular order  - Refusing to meet order - Paid promptly  - Supplying to com[etitor Distributor   -  Good product quality  - Buying from competitor - High reliable product  - Boycotting company Customer  - Fair exchange  - Purchasing from competitor - Safe & reliable product  - Boycotting company Competitor   - Be profitable  -Forcing to”keep up” - Gain a larger market  - Charge lower price
Secondary Stakeholder Business  Local Communities Central/Local Govt. General Public Business Support Foreign Govt . Social Activist Media Skill, Environment Social  Demand Friendly Hostile Opinion Services Image, Publicity Regulation Tax
Nature of Interest and Power Interest  Power Local Com .  - Employ Local residents  - Restricting operating licenses  - Environment is protected  - Lobbying government for  - Local area is developed  regulation of the company Social   -  Ensure that company  - Publicizing the negative issues  Activist  conform to legal and  - Lobbying government for  ethical standard  regulation of the company Media  - Keep the public informed  - Publicizing the negative issues  on all issues - Monitor the company Business   - Provide services  and  - Assist company in business Support   information  endeavor & dev. effort Government   -  Taxes  - Regulation, licenses,& permit - Economic development  - Boycotting company Foreign Gov .  - Economic development  - Permit to do business - Social improvement  - Regulation  General  - Social value Protected  - Support activist  Public  - Prosperity for society  - Condemn or praise company - Risk minimized  - Press government to act
Business Government Society Interactive Model of  Business-Government-Society
Interactive Model of Business Business Firm Local Communities Central/Local Govt. Foreign Govt. Social Activist Media General Public Business Support Stockholder Employee Creditor Supplier Distributor Customer Competitor Market  Non Market
Business and Consumer ,[object Object],[object Object],[object Object],[object Object],[object Object]
Free Market System Business Firm Consumers Competitive Price Voluntary Exchange Supply Good & Services Demand Needs & Wants Profit Satisfaction
Consumer Bill of Right ,[object Object],[object Object],[object Object],[object Object]
Protection to the Consumer ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business and Community ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business and Community ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Business and Government ,[object Object],[object Object]
Business Environment Corporate Managers Environmental Knowledge Corporate  Strategic Planning Copying With Public Policies Linking Business Action to Social Values for need
Type of Business Environment ,[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],Societal Environment Primary Stakeholder Secondary Stakeholder Stakeholder Environment Sociocultural Forces Technological Forces Political-Legal Forces Economic Forces
Internal Environment ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
External Environment ,[object Object],Business Firm Economic Politic Social Technology ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basic Strategies of Environmental Changes ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Linking Environmental Analysis To Planning Scanning Action Monitoring Forecasting Scenario Building Strategy Development Issues Management Contingency Planning Analysis: Opportunity Threats

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2 Stakeholder Approach & Environment

  • 2.
  • 3.
  • 4.
  • 5. Business as an Economic Institution Business Firm Choice of Employees Uses of Resources Quantities of Output Price & Product Quality
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. Primary Stakeholder Business Employees (union ) Stockholder Wholesaler Retailer Competitor Creditor Supplier Customer Skill Material Lend Money Distribute Compete Money Capital
  • 11. Nature of Interest and Power Interest Power Stockholder - Return/Dividend - Exercising Voting Right - Capital Gain - Exercising right to inspect book and record Employee - Stable employment - Strike - Fair pay - Union bargaining power - Safe and comfortable - Publicity Creditor - Repayment of loan - Calling in loan - Interest -Take over loan’s collateral Supplier - Regular order - Refusing to meet order - Paid promptly - Supplying to com[etitor Distributor - Good product quality - Buying from competitor - High reliable product - Boycotting company Customer - Fair exchange - Purchasing from competitor - Safe & reliable product - Boycotting company Competitor - Be profitable -Forcing to”keep up” - Gain a larger market - Charge lower price
  • 12. Secondary Stakeholder Business Local Communities Central/Local Govt. General Public Business Support Foreign Govt . Social Activist Media Skill, Environment Social Demand Friendly Hostile Opinion Services Image, Publicity Regulation Tax
  • 13. Nature of Interest and Power Interest Power Local Com . - Employ Local residents - Restricting operating licenses - Environment is protected - Lobbying government for - Local area is developed regulation of the company Social - Ensure that company - Publicizing the negative issues Activist conform to legal and - Lobbying government for ethical standard regulation of the company Media - Keep the public informed - Publicizing the negative issues on all issues - Monitor the company Business - Provide services and - Assist company in business Support information endeavor & dev. effort Government - Taxes - Regulation, licenses,& permit - Economic development - Boycotting company Foreign Gov . - Economic development - Permit to do business - Social improvement - Regulation General - Social value Protected - Support activist Public - Prosperity for society - Condemn or praise company - Risk minimized - Press government to act
  • 14. Business Government Society Interactive Model of Business-Government-Society
  • 15. Interactive Model of Business Business Firm Local Communities Central/Local Govt. Foreign Govt. Social Activist Media General Public Business Support Stockholder Employee Creditor Supplier Distributor Customer Competitor Market Non Market
  • 16.
  • 17. Free Market System Business Firm Consumers Competitive Price Voluntary Exchange Supply Good & Services Demand Needs & Wants Profit Satisfaction
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23. Business Environment Corporate Managers Environmental Knowledge Corporate Strategic Planning Copying With Public Policies Linking Business Action to Social Values for need
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29. Linking Environmental Analysis To Planning Scanning Action Monitoring Forecasting Scenario Building Strategy Development Issues Management Contingency Planning Analysis: Opportunity Threats