Additional Information
Book Details
Abstract
In an uncertain economic environment with fast-paced changing cultures and contexts, today’s organizations can seem a tricky and complex world to understand. The Business Environment – A Global Perspective endows students with a toolset for identifying, analysing and planning for external (PESTLE) and internal factors in business strategy. This book is about all of us and the world we and businesses live in, because organizations do not exist in a vacuum.
Now in its eighth edition this text gives students the fundamental knowledge of how domestic and international business environments operate in a systematic and logical approach. The Business Environment takes the reader through contexts, types of organization and markets, dealing with contemporary issues in socioeconomic, political and legal structures.
· Clear explanations of economics such as why the prices of things we buy might go up or down, or why at any given time it might be harder or easier to get a job.
· Put theory into practice with a wealth of case studies from a diverse range of local and international organizations such as Facebook, GSK and JCB building into more detailed International Business in Action part case studies providing real life data to analyse on e.g. Quantitative Easing and the global financial crisis.
End of chapter review and discussion questions along with assignments – to test both your knowledge and understanding and how to apply the concepts in real life, and new – Brexit, contexts.
Ian Worthington is Emeritus Professor of Corporate Sustainability, Chris Britton was formerly Principal Lecturer, and Ed Thompson is an Associate Professor in the department of Strategic Management and Marketing at the Faculty of Business and Law, De Montfort University, Leicester, UK.
Table of Contents
Section Title | Page | Action | Price |
---|---|---|---|
Front Cover | Front Cover | ||
Title Page | iii | ||
Copyright Page | iv | ||
Brief Contents | vii | ||
Contents | ix | ||
Contributors | xviii | ||
Preface to the eighth edition | xix | ||
Acknowledgements | xxi | ||
Part One: INTRODUCTION | 1 | ||
1 Business organisations: the external environment | 3 | ||
Ian Worthington | 3 | ||
Learning outcomes and key terms | 3 | ||
Introduction | 4 | ||
The business organisation and its environment | 4 | ||
The general or contextual environment | 7 | ||
Mini case: The impact of regional economic conditions | 8 | ||
The immediate or operational environment | 9 | ||
Analysing the business environment | 10 | ||
Mini case: Fresh but not so easy | 10 | ||
Central themes | 12 | ||
Synopsis | 14 | ||
Summary of key points | 14 | ||
Case study: Facing the unexpected | 14 | ||
Review and discussion questions | 15 | ||
Assignments | 16 | ||
Further reading | 16 | ||
2 Business organisations: the internal environment | 17 | ||
Ian Worthington | 17 | ||
Learning outcomes and key terms | 17 | ||
Introduction | 18 | ||
The concept of the organisation: an initial comment | 18 | ||
Understanding the nature of organisations: theories of organisation and management | 19 | ||
Other theoretical approaches | 23 | ||
Organisational structures | 23 | ||
Mini case: ‘Into the Dragon’s Den’ | 24 | ||
Mini case: Mergers and competition | 27 | ||
The virtual organisation | 29 | ||
Structural change | 29 | ||
Aspects of functional management | 30 | ||
Synopsis | 35 | ||
Summary of key points | 35 | ||
Case study: Reshuffle at Microsoft | 36 | ||
Case study: Thomas Cook expansion | 37 | ||
Review and discussion questions | 37 | ||
Assignments | 37 | ||
Further reading | 38 | ||
3 The global context of business | 39 | ||
Chris Britton | 39 | ||
Learning outcomes and key terms | 39 | ||
Introduction | 40 | ||
Globalisation versus internationalisation | 40 | ||
The role of multinational enterprises | 43 | ||
Mini case: Transfer pricing | 44 | ||
Globalisation and business | 46 | ||
Mini case: Currency crisis in emerging markets | 48 | ||
Globalisation and the small and medium-sized firm | 49 | ||
Synopsis | 49 | ||
Summary of key points | 50 | ||
Case study: Global financial markets – too big to fail | 50 | ||
Case study: FDI flows | 51 | ||
Review and discussion questions | 52 | ||
Assignments | 52 | ||
Further reading | 53 | ||
I nternational business in action: The global car industry and the changing business environment | 55 | ||
Part Two: CONTEXTS | 59 | ||
4 The political environment | 61 | ||
Ian Worthington | 61 | ||
Learning outcomes and key terms | 61 | ||
Introduction | 62 | ||
Political systems | 64 | ||
Government in democratic states | 65 | ||
Mini case: Brought to book | 69 | ||
The three branches or functions of government | 72 | ||
Mini case: The power of the purse | 73 | ||
Checks and balances in democracies | 76 | ||
A model of the policy process | 77 | ||
Synopsis | 78 | ||
Summary of key points | 79 | ||
A ppendix 4.1: A democratic political system in action: UK national government | 79 | ||
Appendix 4.2: Subnational government: UK local authorities | 86 | ||
Appendix 4.3: Supranational government: the European Union | 88 | ||
Case study: The business of lobbying | 94 | ||
Case study: Political campaign funding | 95 | ||
Review and discussion questions | 96 | ||
Assignments | 96 | ||
Further reading | 97 | ||
5 The macroeconomic environment | 99 | ||
Ian Worthington | 99 | ||
Learning outcomes and key terms | 99 | ||
Introduction | 100 | ||
Economic systems | 101 | ||
Economies in transition | 105 | ||
Politico-economic synthesis | 106 | ||
The macroeconomy | 107 | ||
Government and the macroeconomy: objectives | 113 | ||
Mini case: Digging in for the long term | 119 | ||
Government and the macroeconomy: policies | 119 | ||
The role of financial institutions | 124 | ||
Mini case: A new kid on the block: the rise of the credit rating agency | 126 | ||
International economic institutions and organisations | 128 | ||
Synopsis | 131 | ||
Summary of key points | 131 | ||
Case study: Austerity | 132 | ||
Case study: Quantitative easing (QE) | 132 | ||
Review and discussion questions | 134 | ||
Assignments | 134 | ||
Further reading | 134 | ||
6 The demographic, social and cultural contextof business | 135 | ||
Ian Worthington | 135 | ||
Learning outcomes and key terms | 135 | ||
Introduction | 136 | ||
The demographic environment of business | 136 | ||
The social context | 141 | ||
Mini case: A new class structure? | 142 | ||
Lifestyles | 145 | ||
The cultural environment | 147 | ||
Mini case: National cultures | 149 | ||
Application: market segmentation | 150 | ||
Synopsis | 152 | ||
Summary of key points | 152 | ||
Case study: An invitation to ‘tweet’ | 153 | ||
Case study: Supply and demands – a changing workforce | 154 | ||
Review and discussion questions | 154 | ||
Assignments | 155 | ||
Further reading | 155 | ||
7 The resource context: people, technology and natural resources | 157 | ||
Chris Britton | 157 | ||
Learning outcomes and key terms | 157 | ||
Introduction | 158 | ||
People | 158 | ||
Mini case: Zero-hours contracts | 160 | ||
Technology | 168 | ||
Mini case: The robots are coming | 169 | ||
Natural resources | 174 | ||
Synopsis | 177 | ||
Summary of key points | 178 | ||
Case study: Agricultural work and Brexit | 178 | ||
Case study: Fracking | 179 | ||
Review and discussion questions | 181 | ||
Assignments | 181 | ||
Further reading | 182 | ||
8 The legal environment | 183 | ||
Martin Morgan-Taylor | 183 | ||
Learning outcomes and key terms | 183 | ||
Introduction | 184 | ||
Classification of law | 184 | ||
Mini case: Verity and Spindler v Lloyds Bank (1995) | 185 | ||
Sources of law | 186 | ||
The legal system: the courts | 188 | ||
Mini case: Jean-Marc Bosman – a case of foul play? | 190 | ||
Business organisations and the law | 191 | ||
Contract law: the essentials | 191 | ||
Agency | 195 | ||
Law and the consumer | 196 | ||
Codes of practice | 203 | ||
Synopsis | 203 | ||
Summary of key points | 204 | ||
Case study: The sale of goods on the Internet | 204 | ||
Review and discussion questions | 206 | ||
Assignments | 207 | ||
Further reading | 207 | ||
9 The ethical and ecological environment | 209 | ||
Ian Worthington | 209 | ||
Learning outcomes and key terms | 209 | ||
Introduction | 210 | ||
Ethics and business | 211 | ||
Mini case: Illegal or unethical? | 212 | ||
Corporate social responsibility | 213 | ||
The ‘environment’ as a business issue: the emergence of corporate environmentalism | 214 | ||
Drivers of ‘green’ business | 215 | ||
Why and how firms become more environmentally responsible | 219 | ||
Mini case: Going round in circles: Desso Carpets | 220 | ||
Another perspective: the ‘outside-in’ view | 221 | ||
Summary of key points | 221 | ||
Case study: Doing well by doing good | 222 | ||
Review and discussion questions | 223 | ||
Assignments | 223 | ||
Further reading | 224 | ||
International business in action: Migration | 225 | ||
Part Three: FIRMS | 227 | ||
10 Legal structures | 229 | ||
Ian Worthington | 229 | ||
Learning outcomes and key terms | 229 | ||
Introduction | 230 | ||
Private sector organisations in the UK | 230 | ||
Mini case: Companies under pressure | 236 | ||
Social enterprises | 239 | ||
Public sector business organisations in the UK | 240 | ||
Business organisations in mainland Europe | 243 | ||
The public sector in mainland Europe | 246 | ||
Legal structure: some implications | 247 | ||
Franchising, licensing and joint ventures | 252 | ||
Mini case: Cross-national joint ventures | 255 | ||
Synopsis | 255 | ||
Summary of key points | 256 | ||
Case study: Uber | 256 | ||
Review and discussion questions | 257 | ||
Assignments | 257 | ||
Further reading | 258 | ||
11 Size structure of firms | 259 | ||
Chris Britton | 259 | ||
Learning outcomes and key terms | 259 | ||
Introduction | 260 | ||
The size structure of UK industry | 260 | ||
Organisational growth | 261 | ||
Methods of growth | 262 | ||
Mini case: The story of a failed merger | 265 | ||
Finance for growth | 266 | ||
Small firms | 271 | ||
Mini case: ‘Olderpreneurs’ and small firms | 273 | ||
Multinationals | 281 | ||
Synopsis | 281 | ||
Summary of key points | 282 | ||
Case study: Gazprom, the Russian giant | 282 | ||
Review and discussion questions | 283 | ||
Assignments | 284 | ||
Further reading | 284 | ||
12 Industrial structure | 285 | ||
Chris Britton | 285 | ||
Learning outcomes and key terms | 285 | ||
Introduction | 286 | ||
The structure of industry | 286 | ||
Mini case: The end of manufacturing? | 292 | ||
Mini case: The life cycle model | 299 | ||
Deindustrialisation | 301 | ||
Synopsis | 304 | ||
Summary of key points | 304 | ||
Appendix 12.1: The Standard Industrial Classification (SIC), 2007 | 305 | ||
Case study: The rise of the public service companies: the case of Serco | 306 | ||
Review and discussion questions | 308 | ||
Assignments | 308 | ||
Further reading | 308 | ||
13 Government and business | 311 | ||
Ian Worthington | 311 | ||
Learning outcomes and key terms | 311 | ||
Introduction | 312 | ||
Government and business: an overview | 312 | ||
Regional policy | 313 | ||
Regional aid within the European Union | 316 | ||
Mini case: The EU and state aid | 319 | ||
UK urban policy | 319 | ||
Selected urban policy instruments | 321 | ||
Developments in urban policy: 1997–2010 | 323 | ||
Urban and industrial policy developments in the UK since 2010 | 324 | ||
Local government and business in the UK | 326 | ||
Business as an influence on government | 331 | ||
Mini case: A taxing issue | 332 | ||
Synopsis | 333 | ||
Summary of key points | 333 | ||
Case study: Public sector procurement – the Royal Navy | 334 | ||
Review and discussion questions | 334 | ||
Assignments | 335 | ||
Further reading | 335 | ||
International business in action: A lot of bottle | 337 | ||
Part Four: MARKETS | 339 | ||
14 The market system | 341 | ||
Chris Britton | 341 | ||
Learning outcomes and key terms | 341 | ||
Introduction | 342 | ||
The market mechanism | 342 | ||
Demand | 342 | ||
Supply | 345 | ||
Shifts in demand and supply | 349 | ||
Mini case: The effect of a factory fire on the market for microchips | 350 | ||
Price controls | 351 | ||
Mini case: The price of toilet rolls in Venezuela | 353 | ||
Elasticity of demand | 354 | ||
Elasticity of supply | 357 | ||
The importance of the market to business | 358 | ||
Synopsis | 359 | ||
Summary of key points | 359 | ||
Case study: The housing market in the UK | 360 | ||
Review and discussion questions | 362 | ||
Assignments | 362 | ||
Further reading | 363 | ||
15 Market structure | 365 | ||
Chris Britton | 365 | ||
Learning outcomes and key terms | 365 | ||
Introduction | 366 | ||
Market structures – in theory and practice | 367 | ||
Porter’s five-forces model | 374 | ||
Mini case: Open Skies and contestability | 377 | ||
Mini case: The success story of Prosecco | 379 | ||
Measuring the degree of actual competition in the market | 381 | ||
Synopsis | 383 | ||
Summary of key points | 383 | ||
Case study: A Porter’s five-forces analysis of the cigarette industry in the UK | 384 | ||
Review and discussion questions | 386 | ||
Assignments | 387 | ||
Further reading | 387 | ||
16 International markets and trade | 389 | ||
Chris Britton | 389 | ||
Learning outcomes and key terms | 389 | ||
Introduction | 390 | ||
International trade – why it takes place | 390 | ||
Restrictions to international trade | 391 | ||
Mini case: The cotton dispute | 392 | ||
The establishment and growth of the European Union | 393 | ||
‘Brexit’ and Euroscepticism | 394 | ||
The balance of payments | 395 | ||
The history of the balance of payments in the UK | 399 | ||
Mini case: The current account of the balance of payments | 401 | ||
Exchange rates | 404 | ||
The single European currency | 410 | ||
Exchange rates and business | 411 | ||
Synopsis | 412 | ||
Summary of key points | 412 | ||
Case study: Eurozone crisis | 412 | ||
Review and discussion questions | 415 | ||
Assignments | 415 | ||
Further reading | 416 | ||
17 Governments and markets | 417 | ||
Ian Worthington | 417 | ||
Learning outcomes and key terms | 417 | ||
Introduction | 418 | ||
Privatisation policy in the UK | 418 | ||
Mini case: Government to the rescue | 424 | ||
Competition policy | 427 | ||
Mini case: Accusations of price fixing | 429 | ||
Government and the labour market | 435 | ||
Synopsis | 439 | ||
Summary of key points | 440 | ||
Case study: Who leads who? | 441 | ||
Case study: ‘What a fine mess you’ve got me into’ | 441 | ||
Review and discussion questions | 443 | ||
Assignments | 443 | ||
Further reading | 443 | ||
International business in action: Working with the grain of the market | 445 | ||
Part Five: CONCLUSION | 447 | ||
18 Strategy and the changing environment | 449 | ||
David Orton and Ian Worthington | 449 | ||
Learning outcomes and key terms | 449 | ||
Introduction | 450 | ||
The need to monitor environmental change | 451 | ||
Analysing the business environment: broad approaches | 452 | ||
Mini case: Multinational inward investment: a PESTLE analysis | 453 | ||
Techniques | 456 | ||
Mini case: Bucking the trend | 458 | ||
Limitations to environmental analysis | 461 | ||
Sources of information | 462 | ||
Synopsis | 469 | ||
Summary of key points | 470 | ||
Case study: Scenario planning at Shell | 470 | ||
Review and discussion questions | 473 | ||
Assignments | 473 | ||
Further reading | 473 | ||
Glossary | 475 | ||
Index | 495 | ||
Back Cover | Back Cover |