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Three Forces Driving
the
New Economy |
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Knowledge
– intellectual capital as a strategic factor
Change
– continuous, rapid and complex; generates uncertainty and reduces
predictability
Globalization
– in R&D, technology, production, trade, finance, communication and
information, which has resulted in opening of economies, global
hypercompetition and interdependency of business |
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Five
External Drivers
of Change |
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❶
Customer-led
drivers – changes
in the market make-up such as
attitudinal moves in demand, income alterations, or demographic
shifts that change definitions of value and convenience...
More
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PEST Analysis |
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Politics /
legislation |
list major trends |
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Economics |
list major trends |
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Social |
list major trends |
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Technological |
list major trends |
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Business Environment
Defined
Business environment is a set of political,
economic, social and technological (PEST) forces that are largely outside
the control and influence of a business, and that can potentially have both
a positive and a negative impact on the business.1
Today's World
Realities
→
New Economy:
Key Features
The magnitude of today's
environmental,
competitive, and global market change is unprecedented. It's a very
interesting and exciting world, but it's also volatile and chaotic:
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Volatility describes the economy's rate of change: extremely fast,
with explosive upsurges and sudden downturns.
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Chaos describes the direction of the economy's changes: we're not
sure exactly where we're headed, but we are swinging between the various
alternatives at a very high speed.3
To cope with an unpredictable world you must
build an enormous amount of flexibility into your organization. While you
cannot predict the future, you can get a handle on
trends, which is a way to
take advantage of change and convert risks
into
→
opportunities.
PEST Analysis
Today's world is a rapidly changing place.
Developments across a range of factors will have an impact on your business
or industry. The classic PEST framework (political, economic, social,
technological) identifies four major categories of external
factors that affect the ability of your organization to survive and prosper.
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→
Jack Welch's
5 Strategic Questions
Business Ecosystem
Business ecosystem – an economic web – is
a community of organizations and stakeholders (players) operating within a
particular
business environment, which collaborate and compete in an economic web of
relationships.
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Strategy Formulation
→
Corporate Strategy:
2 Logics
→
Competitive Strategies: 2 Types
→
Surprise To Win: 3 Strategies
Strategy formulation is the process of
determining appropriate courses of action for achieving organizational
objectives and thereby accomplishing
organizational purpose...
>>>
Play 'Innovation
Football'
Strategic simulation game
Innovation Football (Innoball)
helps you discover hidden threats and
opportunities in the business environment...
More
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