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For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.0 THE CONCEPT OF BUSINESS IN CONTEXT
What is business?
The ‘Business in Context’ model
The contexts of business
How the model works
The systems and contingency approaches
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.1 WHAT IS BUSINESS?
An organized effort to produce goods and services to meet the needs of society
A broad concept - manufacturing and service industry, not for profit organizations, voluntary sector and public services
The growth of the ‘business model’ in which all organizations are run as businesses
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.2 THE BUSINESS IN CONTEXT MODEL
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.3 THE BUSINESS IN CONTEXT MODEL II
Business can best be understood as a series of related activities in a number of different contexts
These contexts can be seen as levels and comprise:- Activities or functional level- Strategic level- Organizational level- Environmental level
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.4 BUSINESS ACTIVITIES OR FUNCTIONS
Innovation
Operations
Marketing
Human resource management
Finance and accounting
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.5 THE STRATEGIC CONTEXT
The nature of management and leadership
The formulation of a set of objectives and the means of achieving those objectives
Issues of ethics and corporate social responsibility
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.6 THE ORGANIZATIONAL CONTEXT
Goals
Structure
Ownership
Size
Organizational/corporate culture
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.7 THE ENVIRONMENTAL CONTEXT
Globalization – an overriding factor
The economy
The state
Technology
Labour
Culture
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.8 KEY ASPECTS OF THE BUSINESS IN CONTEXT MODEL
Businesses are a complex network of interrelationships
Business activities are both influenced by and in turn influence the strategic, organizational and environmental contexts in which they operate
Interaction occurs within each level of the model as well as between levels
Decisions that affect one part of the business will impact on other parts as well
Decisions are made by people with all the subjectivity that entails
Interactions are influenced by history
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.9 KEY ASPECTS OF THE BUSINESS IN CONTEXT MODEL II
Interactions and influences operate within each context between the various elements.
Interactions and influences operate between elements at different levels.
Influences operate in every direction
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.10 THE SYSTEMS APPROACH I
All organizations are made up of interdependent parts
Organizations may be viewed as a series of inputs, processes and outputs (see slide 1.11)
The job of management is to balance the inputs, processes and outputs
Equilibrium between the organization and its environment is important
Feedback is an important element of the system - from the outputs to the processes and the inputs and from the processes to the inputs
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.11 THE SYSTEMS APPROACH II
For use with Business in Context 6eby David Needle
9781408095218 © 2015 Cengage Learning EMEA Ltd
1.12 THE CONTINGENCY APPROACH
Organizations and their activities are shaped by the environments in which they operate
Organizations should adapt to the prevailing environment
Most successful organizations have a ‘best fit’ with their environment
Organizations that do not adapt will fail