Mui1 what is environment

Global and European
Business Environment :

What is environment ?

Christophe Benavent
Professor – University Paris Ouest

26 avr. 2011 http://christophe-benavent.blogspot.com 1

Business environment

26 avr. 2011 http://christophe-benavent.blogspot.com
2

Functional components
„ Customer Market -> downward markets
„ Financial resources -> macro-economics
„ Supply -> upward markets
„ Production and distribution technologies
„ Human resources
„ Legal and institutional environment
„ Environmental aspects : externalities
„ Public opinion and ethics : legitimacy
„ …

3

The PESTEL model
„ Political
„ Economical
„ Sociological
„ Technological
„ Environmental
„ Legal

4

General and specific
environment
Macro

Global environment Specific environment

General Task

General environment Local environment

Micro
5

A system view of task
environment

6

A system view of general
environment

7

The 2007 crisis system

8

Environment uncertainty
„ A classical organizational variable
ƒ Dynamism
ƒ Heterogeneity
ƒ Munificence
ƒ Complexity
„ Exemples :
ƒ organisations as reducing uncertainty ( buffering and
smoothing) Thomson
ƒ Contingency theory : Lawrence and lorsch
ƒ Ressources Dependence Theory : complexity and
network of stakeholder influence

9

CAC 40

10

Down Jones

11

Environment/strategy link

„ Different views
ƒ The contingency view : adaptation view of
environment (Lawrence and Lorsch)
ƒ organizational Ecology : a determinist
environment ( Hanan and Freeman)
ƒ The enactement view : a constructed
environment (Weick)
ƒ The strategic management view : the
modeled or choice environment ( Ansoff)

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13

Action modalities

„ Assimilation

„ Accommodation

„ Sélection

14

Rent theory

Domination Hyper-
Rentes Différentielles
par les coûts compétitivité
-économie d'échelle
-économie d'expérience
-économie d'envergure

Concurrence
Focalisation monopolistique

Rentes de monopole
-Différenciation
-Domestication

15

Environment adaptation

Selection Reconfiguration
Mobility
The firm could change
Its position and choose
The environment

Accommodation Assimilation

Market power
The firm could influence,
modify, model its environment

16

The grain of environment

Polymorphist
Specialist

Amplitude

Mecanist « Improvisist »

frequency
17

Processus
d ’apprentissage
Extensive

Apprentissage Apprentissage
par l'échec Théorique

Apprentissage
Accidentel par imitation Intentionnel

Apprentissage Apprentissage
par l'usage expérimental

Intensif
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Boundaries and frontier
General Field
Uncertainties
Bridges

Internal field

Barriers

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Field concept of
environment and Ecology

20

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Trends

1. shifts in economic activity and growth between and within regions of the world;
2. increasing demand for goods and services among the very poor in emerging
markets; (Bope)
3. a faster pace and wider locus of technological innovation;
4. Increasingly global labor markets : migrations ?
5. increasingly ubiquitous and inexpensive access to information and knowledge.

22

Mui1 what is environment

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