ENVIRONMENT OF STRATEGIC MANAGEMENT. IMPORTANCE OF

Transcript:ENVIRONMENT OF STRATEGIC MANAGEMENT. IMPORTANCE OF:
ENVIRONMENT OF STRATEGIC MANAGEMENT. IMPORTANCE OF POLITICS IN STRATEGIC MANAGEMENT: (1) Political Stability. (2) Changes in Government Regulations. (3) Impact on Economy. (4) Campaign Finance. (5) Lobbying or Legislative Advocacy. (6) Helps in Risk Mitigation. * Impacts of Organizational Politics. ROLE OF COMPETITION: (*) The following are some of the important benefits of competition: (1) Growth of Business. (2) Better service to the customers. (3) Provides opportunities for creative thinking and innovation. (4) Stops complacency. (5) Triggers economic growth. (6) Helps in identification of strengths and weakness. (7) Helps in identification of potential threats. (8) Helps business to raise their standards of service. NATIONAL AND GLOBAL BUSINESS ENVIRONMENT: 1) Global Concentration. 2) Global Synergies. 3) Global Strategic Motivation. (*) Some of the long-term developments that are shaping our world: (1) Emerging markets increase their global power. (2) Green marketing is becoming a competitive advantage. (3) Global banking seek recovery through transformation. (4) Governments enhance ties with the private sector. (5) Rapid technology innovation creating a smart, mobile world. (6) Demographic shifts transform the global workforce. COMPONENTS OF ENVIRONMENT: (1) Internal Environment. (2) External Environment. (A) Micro/Operating Environment. (a) Suppliers. (b) Customers. (c) Market Intermediaries. (d) Competitors. (e) Public. (B) Macro/General Environment: (a) Political Environment Political Stability Political ideology of the government Political Environment Welfare activities of the government Relation of government with other countries Center state relationship * Factors of the Political Environment: * Political System. * Political Industry. * Political Philosophy. (b) Economic Environment: * The economic structure adopted by the country (capitalist, socialist or mixed economy). * The economic policies (Industrial policy, Fiscal policy, Monetary policy). * Economic planning (five year plan, annual budgets etc). * Infrastructural facilities like banks, Insurance companies . * Economic indices like money supply , disposable personal income,saving rate, income distribution etc. * Economic environment is composed of Economic Environment Mixed economy Income level Distribution of income Trade cycle Price level Socialism Industrial growth Capitalism Economic system Rate of capital formation Market share Economic condition Economic policies (c) Social Environment: Socio-cultural environment Attitude of people towards work Family system Caste system Religion Education Habits and preference Languages Customs and traditions Business ethics (d) Technological Environment Research and development Innovation Product technology Modernization Technological environment *Impact of technology in banking and insurance: * Faster Remittance Facilities. * Automated Teller Machine. * Telephone Banking/ Mobile Banking. * Home Banking. * Credit Card Facility. * Personal