Table Of ContentPEARSON CUSTOM PUBLISHING
Enterprise and its
Environment (1)
c17Eb
hEriot watt
E n t e r p r i s e a n d i t s
E n v i r o n m e n t 1
A01_MCGI9311_01_CUS_PR.indd 1 13/07/2012 14:40
PEARSON CUSTOM PUBLISHING
E n t e r p r i s e a n d i t s
E n v i r o n m e n t 1
We work with leading authors to develop the strongest learning Compiled from:
experiences, bringing cutting-edge thinking and best learning
practice to a global market. We craft our print and digital
resources to do more to help learners not only understand The Business Environment
their content, but to see it in action and apply what they learn, Sixth Edition
whether studying or at work.
by Ian Worthington and Chris Britton
Pearson is the world’s leading learning company. Our portfolio
includes Penguin, Dorling Kindersley, the Financial Times and Understanding the Business Environment
our educational business, Pearson International. We are also a
Third Edition
leading provider of electronic learning programmes and of test
development, processing and scoring services to educational by Claire Capon
institutions, corporations and professional bodies around the
world.
The International Business Environment:
Pearson Custom Publishing enables our customers to access a Challenges And Changes
wide and expanding range of market-leading content from world-
Second Edition
renowned authors and develop their own tailor-made book. You
by Ian Brooks, JamieWeatherston and GrahamWilkinson
choose the content that meets your needs and Pearson Custom
Publishing produces a high-quality printed book.
Managing in a Business Context: An HR Approach
Every day our work helps learning fl ourish, and wherever
learning fl ourishes, so do people. First Edition
by Huw Morris, Brian Willey and Sanjiv Sachdev
To learn more please visit us at: www.pearsoncustom.co.uk
Exploring Strategy
Ninth Edition
by Gerry Johnson, Richard Whittington and Kevan Scholes
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Auckland • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
A01_MCGI9311_01_CUS_PR.indd 2 13/07/2012 14:40
PEARSON CUSTOM PUBLISHING
E n t e r p r i s e a n d i t s
E n v i r o n m e n t 1
We work with leading authors to develop the strongest learning Compiled from:
experiences, bringing cutting-edge thinking and best learning
practice to a global market. We craft our print and digital
resources to do more to help learners not only understand The Business Environment
their content, but to see it in action and apply what they learn, Sixth Edition
whether studying or at work.
by Ian Worthington and Chris Britton
Pearson is the world’s leading learning company. Our portfolio
includes Penguin, Dorling Kindersley, the Financial Times and Understanding the Business Environment
our educational business, Pearson International. We are also a
Third Edition
leading provider of electronic learning programmes and of test
development, processing and scoring services to educational by Claire Capon
institutions, corporations and professional bodies around the
world.
The International Business Environment:
Pearson Custom Publishing enables our customers to access a Challenges And Changes
wide and expanding range of market-leading content from world-
Second Edition
renowned authors and develop their own tailor-made book. You
by Ian Brooks, JamieWeatherston and GrahamWilkinson
choose the content that meets your needs and Pearson Custom
Publishing produces a high-quality printed book.
Managing in a Business Context: An HR Approach
Every day our work helps learning fl ourish, and wherever
learning fl ourishes, so do people. First Edition
by Huw Morris, Brian Willey and Sanjiv Sachdev
To learn more please visit us at: www.pearsoncustom.co.uk
Exploring Strategy
Ninth Edition
by Gerry Johnson, Richard Whittington and Kevan Scholes
Harlow, England • London • New York • Boston • San Francisco • Toronto • Sydney • Auckland • Singapore • Hong Kong
Tokyo • Seoul • Taipei • New Delhi • Cape Town • Sao Paulo • Mexico City • Madrid • Amsterdam • Munich • Paris • Milan
A01_MCGI9311_01_CUS_PR.indd 3 13/07/2012 14:40
C O N T E N T S
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
Chapter 1 Business Organisations: the External Environment 1
And associated companies throughout the world
Visit us on the World Wide Web at: Chapter 1 from The Business Environment, Sixth Edition
www.pearsoned.co.uk by Ian Worthington and Chris Britton
This Custom Book Edition © Pearson Education Limited 2012 Chapter 2 The External Environment 17
Compiled from:
Chapter 1 from Understanding the Business Environment, Third Edition
The Business Environment, Sixth Edition by Claire Capon
by Ian Worthington and Chris Britton
ISBN 978 0 27371 675 4 Chapter 3 Strategy and the Changing Environment 33
© Ian Worthington and Chris Britton 1994, 1997, 2000, 2003, 2006, 2009
Chapter 18 from The Business Environment, Sixth Edition
Understanding the Business Environment, Third Edition
by Ian Worthington and Chris Britton
by Claire Capon
ISBN 978 0 27370 814 8 Chapter 4 The Composition of the External Environment 63
© Pearson Education Limited 2009
The International Business Environment: Challenges And Changes, Second Edition Chapter 2 from Understanding the Business Environment, Third Edition
by Ian Brooks, JamieWeatherston and GrahamWilkinson by Claire Capon
ISBN 978 0 273 72566 4
© Pearson Education Limited 2004, 2011 Chapter 5 The Global Context of Business 117
Managing in a Business Context: An HR Approach, First Edition
Chapter 3 from The Business Environment, Sixth Edition
by Huw Morris, Brian Willey and Sanjiv Sachdev
ISBN 978 0 273 65174 1 by Ian Worthington and Chris Britton
© Pearson Education Limited 2002
Chapter 6 Gobalisation, Challenges and Changes 133
Exploring Strategy, Ninth Edition
by Gerry Johnson, Richard Whittington and Kevan Scholes Chapter 9 from The International Business Environment: Challenges And Changes
ISBN 978 0 273 73549 6
by Ian Brooks, JamieWeatherston and GrahamWilkinson
© Simon & Schuster Europe Limited 1998
© Pearson Education 2002, 2011 Chapter 7 The Political Environment 165
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic, Chapter 4 from The Business Environment, Sixth Edition
mechanical, photocopying, recording or otherwise, without either the prior by Ian Worthington and Chris Britton
written permission of the publisher or a licence permitting restricted copying
in the United Kingdom issued by the Licensing Agency Ltd, Saffron House, 6–10 Chapter 8 The Macroeconomic Environment 207
Kirby Street, London EC1N 8TS.
Chapter 5 from The Business Environment, Sixth Edition
ISBN 978 1 78134 931 1
by Ian Worthington and Chris Britton
Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY
A01_MCGI9311_01_CUS_PR.indd 4 13/07/2012 14:40
C O N T E N T S
Pearson Education Limited
Edinburgh Gate
Harlow
Essex CM20 2JE
Chapter 1 Business Organisations: the External Environment 1
And associated companies throughout the world
Visit us on the World Wide Web at: Chapter 1 from The Business Environment, Sixth Edition
www.pearsoned.co.uk by Ian Worthington and Chris Britton
This Custom Book Edition © Pearson Education Limited 2012 Chapter 2 The External Environment 17
Compiled from:
Chapter 1 from Understanding the Business Environment, Third Edition
The Business Environment, Sixth Edition by Claire Capon
by Ian Worthington and Chris Britton
ISBN 978 0 27371 675 4 Chapter 3 Strategy and the Changing Environment 33
© Ian Worthington and Chris Britton 1994, 1997, 2000, 2003, 2006, 2009
Chapter 18 from The Business Environment, Sixth Edition
Understanding the Business Environment, Third Edition
by Ian Worthington and Chris Britton
by Claire Capon
ISBN 978 0 27370 814 8 Chapter 4 The Composition of the External Environment 63
© Pearson Education Limited 2009
The International Business Environment: Challenges And Changes, Second Edition Chapter 2 from Understanding the Business Environment, Third Edition
by Ian Brooks, JamieWeatherston and GrahamWilkinson by Claire Capon
ISBN 978 0 273 72566 4
© Pearson Education Limited 2004, 2011 Chapter 5 The Global Context of Business 117
Managing in a Business Context: An HR Approach, First Edition
Chapter 3 from The Business Environment, Sixth Edition
by Huw Morris, Brian Willey and Sanjiv Sachdev
ISBN 978 0 273 65174 1 by Ian Worthington and Chris Britton
© Pearson Education Limited 2002
Chapter 6 Gobalisation, Challenges and Changes 133
Exploring Strategy, Ninth Edition
by Gerry Johnson, Richard Whittington and Kevan Scholes Chapter 9 from The International Business Environment: Challenges And Changes
ISBN 978 0 273 73549 6
by Ian Brooks, JamieWeatherston and GrahamWilkinson
© Simon & Schuster Europe Limited 1998
© Pearson Education 2002, 2011 Chapter 7 The Political Environment 165
All rights reserved. No part of this publication may be reproduced, stored
in a retrieval system, or transmitted in any form or by any means, electronic, Chapter 4 from The Business Environment, Sixth Edition
mechanical, photocopying, recording or otherwise, without either the prior by Ian Worthington and Chris Britton
written permission of the publisher or a licence permitting restricted copying
in the United Kingdom issued by the Licensing Agency Ltd, Saffron House, 6–10 Chapter 8 The Macroeconomic Environment 207
Kirby Street, London EC1N 8TS.
Chapter 5 from The Business Environment, Sixth Edition
ISBN 978 1 78134 931 1
by Ian Worthington and Chris Britton
Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY
A01_MCGI9311_01_CUS_PR.indd 5 13/07/2012 14:40
Chapter 9 The Market System 247
Chapter 14 from The Business Environment, Sixth Edition
by Ian Worthington and Chris Britton
Chapter 10 The Demographic, Social and Cultural Context of Business 273
Chapter 6 from The Business Environment, Sixth Edition
by Ian Worthington and Chris Britton
Chapter 11 Technology 301
Chapter 6 from Managing in a Business Context: An HR Approach, First Edition
by Huw Morris, Brian Willey and Sanjiv Sachdev
Chapter 12 The Technologial Environment 331
Chapter 4 from The International Business Environment: Challenges And Changes
by Ian Brooks, JamieWeatherston and GrahamWilkinson
Chapter 13 The Ethical and Ecological Environment 369
Chapter 9 from The Business Environment, Sixth Edition
by Ian Worthington and Chris Britton
Chapter 14 Ethics 393
Chapter 12 from Understanding the Business Environment, Third Edition
by Claire Capon
Chapter 15 CSR 407
Chapter 4 (part 4.4 only) from Exploring Strategy, Ninth Edition
by Gerry Johnson, Richard Whittington and Kevan Scholes
Chapter 16 The Legal Environment 415
Chapter 8 from The International Business Environment: Challenges And Changes
by Ian Brooks, JamieWeatherston and GrahamWilkinson
Index 459
A01_MCGI9311_01_CUS_PR.indd 6 13/07/2012 14:40
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M01_WORT6754_06_SE_C01.QXD:BUEN_CO1 7/5/09 13:06 Page 3
3
1 Business organisations:
the external environment
Ian Worthington
Businessorganisationsdifferinmanyways,buttheyalsohaveacommon
feature:thetransformationofinputsintooutput.Thistransformationprocess
takesplaceagainstabackgroundofexternalinfluenceswhichaffectthefirm
anditsactivities.Thisexternalenvironmentiscomplex,volatileandinteractive,
butitcannotbeignoredinanymeaningfulanalysisofbusinessactivity.
Learning Havingreadthischapteryoushouldbeableto:
outcomes
(cid:31) indicatethebasicfeaturesofbusinessactivity
(cid:31) portraythebusinessorganisationasasysteminteractingwithitsenvironment
(cid:31) demonstratetherangeandcomplexityoftheexternalinfluencesonbusiness
activity
(cid:31) identifythecentralthemesinherentinthestudyofthebusinessenvironment
Key terms Environmentalchange Immediate(oroperational) Outputs
Externalenvironment environment PESTLEanalysis
General(orcontextual) Inputs Transformationsystem
environment Opensystem
M01_MCGI9311_01_CUS_C01.indd 2 13/07/2012 14:40
M01_WORT6754_06_SE_C01.QXD:BUEN_CO1 7/5/09 13:06 Page 3
3
1 Business organisations:
the external environment
Ian Worthington
Businessorganisationsdifferinmanyways,buttheyalsohaveacommon
feature:thetransformationofinputsintooutput.Thistransformationprocess
takesplaceagainstabackgroundofexternalinfluenceswhichaffectthefirm
anditsactivities.Thisexternalenvironmentiscomplex,volatileandinteractive,
butitcannotbeignoredinanymeaningfulanalysisofbusinessactivity.
Learning Havingreadthischapteryoushouldbeableto:
outcomes
(cid:31) indicatethebasicfeaturesofbusinessactivity
(cid:31) portraythebusinessorganisationasasysteminteractingwithitsenvironment
(cid:31) demonstratetherangeandcomplexityoftheexternalinfluencesonbusiness
activity
(cid:31) identifythecentralthemesinherentinthestudyofthebusinessenvironment
Key terms Environmentalchange Immediate(oroperational) Outputs
Externalenvironment environment PESTLEanalysis
General(orcontextual) Inputs Transformationsystem
environment Opensystem
M01_MCGI9311_01_CUS_C01.indd 3 13/07/2012 14:40
