Lecture 3 BU111 PDF

Title	Lecture 3 BU111
Author	Mitchell Stemerdink
Course	Understanding Bus. Environment
Institution	Wilfrid Laurier University
Pages	2
File Size	42.3 KB
File Type	PDF
Total Downloads	34
Total Views	137

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lecture 3...

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Lecture 3 BU111 September 18, 2018

Starbucks Case -

Q&A registration begins Friday September, 21 at 8am Session will be on Friday, Sept 28 at 2:30pm in LH1001 Register on Laurier Biz

PEST – Political-Legal Factors -

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Elements: o Laws and regulations  Product labels, minimum wage laws, bans on certain products o Taxes  Political measure put in place to incentivize you, shape behaviour o Trade agreements or conditions o Political system o Political stability Significance o Protection of consumers o Support/protection and regulation of domestic businesses o Opportunity creation in foreign markets

PEST – Economic Factors -

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Elements o Inflation/deflation o Interest rates o Employment rates o Exchange rates  Are you buying/selling goods from other countries o Balance of trade o Productivity Significance o Affect economic stability, employment, economic growth o Measures: aggregate output, GDP, GNP)

PEST – Social Factors -

Elements

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o Customs o Values o Attitudes o Demographic characteristics Significance o Affect customer preferences and worker attitudes/behaviours, standards of business conduct, and corporate social responsibility

PEST – Technological Factors -

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Elements o Internet o Product innovations o Information technologies o Not limited to computers and information  Technology influences every industry (farming, education) Significance o Demands constant scanning and learning; legacies/compatibility make change challenging

Porter’s Five Sources -

Industry competitors o Make it tough to be profitable o Rivalry among existing firms - Potential entrants o Soon to be competitors in the industry - Substitutes o Every industry has substitute products o These products are not identical but can satisfy customers o Will steal profit - Suppliers o Companies that you buy product from, can influence your product level - Buyers o How much relationship do your buyers have on your profit o Your buyers control your industries competition Caveat: Power and influence each force will vary by industry...