ACCA F1 chapter 2 （Business environment）

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Business environment

• PEST/PESTEL analysis
  • social and demographic trends
    • demographic trend
      • population and the labour market
        • the aging problem
        • increasing participation of women in the labour force
      • family life cycle
    • social trend
      • social class
    • cultural trends
      • health and diet issues
        • the impact on business
      • environmentalism
  • the impact of technology on organizations
    • general effects
      • AI 人工智能
      • Blockchain 区块链
      • Cloud Computing/service 云计算
      • Big Data 大数据
    • impact on organization structure
      • span of control
      • tall and flat organizations
      • delayering&downsizing
    • outsourcing and offshoring
      • definition
        • （a）Outsourcing means contracting out tasks,operations,or processes to an external third party. （b）Offshoring means the practice of outsourcing overseas.
      • appraisal of outsourcing
        • advantages
          • （a）Outsourcing simplifies the operation of business,helping to remove uncertainty of cost and improve production efficiency. （b）Businesses could enjoy high-quality service and professionalism provided by external experts. （c）Outsourcing helps organizations to be more flexible to respond to changes in environment.
        • disadvantages
          • （a）It's risky for business to outsource important and confidential tasks to external third party.（有泄密风险） （b）If outsides provide unsatisfactory level of service,it is time-consuming and expensive for business to shift to a new outsider or reconstruct their own functions,that is ,businesses tend to lock in contracts and have no choice but to accept the fact.（追责成本高，受限于合同） （c）organizations may be lazy to keep up with the new trends/technology once they choose to outsource,thus giving an opportunity to their competitors,which may result in loss of competitive advantage.（损失竞争优势） （d）Outsourcing may be ineffective as outsiders have many customers to serve and businesses might sacrifice control over operations.（效率低）
  • legal environment
    • employment protection law
      • Dismissal
        • summary dismissal
        • constructive dismissal
        • wrongful dismissal
        • unfair dismissal
      • Redundancy
        • It is one kind of fair dismissal,and it usually occurs when: The employer stops to carry on the business. The job requirement of employees to carry out certain work has diminished.
    • data protection and security law
      • rules of data protection act
        • 1.used fairly,lawfully and transparently. 2.used for specified,explicit purposes. 3.used in a way that is adequate,relevant and limited to only what is necessary. 4.accurate and ,where necessary,kept up to date. 5.kept for no longer than is necessary. 6.handled in a way that ensures appropriate security,including protection against unlawful or unauthorised processing,access,loss,destruction or damage.
      • the rights of data subjects
        • 1.be informed about how their data is being used. 2.access personal data updated. 3.have incorrect date updated. 4.have data erased. 5.stop or restrict the processing of their data. 6.data portability. 7.object to how their data is processed in certain circumstances.
    • health and safety law
      • employer's duties
        • 1. a safe working environment. 2. safe equipment and procedures. 3. adequate information, instruction, training and supervision. 4. adequate investigation of accidents.
      • employee's duties
        • 1. be careful during using equipment. 2. take reasonable duty of care to themselves and others. 3. inform employer of any potentially dangerous situation.
    • consumer protection
      • the three elements of contract
        • offer要约 ，acceptance 对价，consideration 承诺
      • sales of goods might meet several items
        • The goods must be delivered for a particular occasion or date. 时效性 The seller must have legal title or the ownership of the item they are selling. The goods must correspond with this description. The goods sold must be of satisfactory quality and fit for their intended purpose.
      • provision of service should comply the following requirements
        • Carried out with reasonable skill and care. Complete within a reasonable length of time. Completed at a reasonable price.
• Poter's five forces
  • five forces
    • competitive rivalry
    • the threat of new entrants to the industry
    • the threat of substitute products or services
    • the bargaining power of customers
    • the bargaining power of suppliers
  • three generic strategies
    • cost leadership
    • differentiation
    • focus
• value chain analysis
  • primary activities
    • inbound logistics
    • operations
    • outbound logistics
    • marketing and sales
    • service
  • support activities
    • procurement
    • technology development
    • human resource management
    • firm infrastructure
• SWOT analysis
  • internal appraisal
    • financial factors
    • physical resources
  • external appraisal
    • economic trends
    • political，environmental and economic regulations
    • threat