Company environment



}The main goal of the management
◦To form production process in the best way
◦Main idea is maximizing of the profit
}Shareholders x Stockholders attitude
◦Different targets, same idea (maximizing the profit)
◦Motivation of the subjects
}Corporate Governance
◦Moral hazard
}

}
Name of the group
Requirements
Benefits
Owners
Profit
Capital
Creditor
repayment and interest of the loan
Capital
Employees
Fair wage, motivation
Labor
Management
Reward, power, prestige
Leadership
Customers
Goods or services for the good price
Consumption
Suppliers
reliable payment obligations, long-term profitable relationships
delivery of goods and services (of the best quality)
Public
Paying taxes, law enforcement, environmental behavior
infrastructure, rule of law




}Development of information and communication ecologies
}Increasing level of customer’s requests
}Increasing level of competitions
}Intensifies the market globalization and forms of business
}The influence of the government is limited
}Sectors and branches are getting closer
}The importance of ecology is growing

}Part of outer environment
}Factors are based on international, national or regional environment
}Those factors touch the most of organization directly
}But to their product or services only vicariously

}Social
◦The level of society, social state
}Technics and technological
◦Technological development, computer skills
}Economics
◦Tax rate, interest rate, wage level
}Political and law
◦Stability, corruption, law enforcement
}Ecological
◦Attitude to environment

}Globalization of the business
◦National borders are not important
◦The production is moving to the low costs
◦Competition of the states is replaced by competition of the international companies
◦The number of national and business restriction is reduces
}The world population is growing

}Special influence to Czech republic
◦Entry of international capital, founding of join ventures companies
◦Membership of Czech republic in EU
◦International tourism
◦International mobility of manpower

}National culture
◦Known behavior of the people
◦Shared by all members of society
◦Forming their ranking of values, life style
}Stakeholders
}Traffic, information and communication infrastructure
}Nature and resources
}Business conditions (6C)
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}Country
◦Taxes, specific law
}Corporations
◦Forms of business companies
}Customers
◦How much, their purchasing power
}Costs
◦What does influence costs?
}Competitors
◦How many competitors are present in the country
}Currency
◦Exchange rates, stability of the currency
}
}
}

}Factors from the company’s neighborhood
}Very important for small companies
}Local advantages or disadvantages
}Local government fees and taxes
}
}




}Implementation
◦Pioneers, adventurers
}Growing up
◦Serious companies
}Maturation
◦Stabile situation
}Comedown
◦Most companies are leaving

}Weak parts
◦What is our disadvantage?
◦How can we be harmed?
}Strong parts
◦Where are we unique?

Positive
Negative
Internal
Strengths
Weaknesses
External
Opportunities
Threatens
•SWOT analysis
•Collects all important factors together
•Very popular in Internet business
•Can be used in any case that needs to be analyzed
•New product
•New project
•New service
•Analyze new workflow

}Where is our advantage
}What is unique in our company
}Why we lead?
}Examples
◦Experienced management
◦Special know-how
◦IT services or IS

}What do we do wrong?
}Where we lost money or good-will because of our own mistake?
}What was our last big inner problem?
}Examples
◦Old technical equipment
◦Bad behavior of employees
◦Bad quality of IT services

}What can be a new impulse for the company?
}Where we can find a new sources?
}How we can improve our company?
}Examples
◦Lower taxes
◦Donations (EU/government/other organizations)
◦New technologies

}What can be dangerous for our improvement?
}What kind of pressure we must cope with?
}What do our competitors plan?
}Examples
◦Higher taxes
◦Structure of unemployment
◦Entrance of the new competitor




}Developing the new methods, suitable for improving the strengths of the company
}How we can use the opportunities to make our strengths stronger
}Examples:
◦Using donations from Czechinvest to teach the members of management
◦Using favorable (low) interest rate to develop new methods from our know-how

}Using the strengths to eliminate the threatens
}How we can cope with the dangers from outside by our own?
}Examples
◦Use our management experiences to optimize our processes and save money to face the higher taxes.
◦Use IS with easy user interface to eliminate the number of training days for the new employees
◦
}

}Removing the weaknesses to found the new opportunities
}How we can use opportunities to remove our weaknesses?
}Examples:
◦Using donations from EU to buy / upgrade information system (if it is weak)
◦Using favorable (low) interest rate to take bank loan to buy new machines (if they are too old)
}

}Developing strategies to eliminate the threatens, endangering our weaknesses.
}The hardest part of SWOT
}How we can eliminate our weaknesses in the way to not be endangered by threatens?
}How we can use our threatens as our benefit?
}Examples
◦Use the higher unemployment to motivate our employees to behave in a better way
◦Use the fact of the new competitor’s entrance to increase the pressure on quality of our IT
services

}Company environment
◦Outer
–Macro x trade
–Analysis – PESTE
◦Inner
–Weak x Strong
}SWOT Analysis
◦Data
◦Strategies
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