Managing For Business Effectiveness

Managing for Business Effectiveness
BUSINESS MANAGEMENT
The success of business nowadays do not depend of the investement and
the technology that we use to be efficient on the makert .The business may
survive throught different process of effective total quality management of every
departement of the organisation and know how to deal with the PESTEL factors.
The market is very dynamics and customers are more sophisticated with the
advancement of technology whereas set up a business should be done after a
feasibility study . We should target the right place for the business : study the
demographie ( regions ) also make a segmentation of the market( gender , age,
race ) to manufracture a product that meet the expectation of the customers.
Manager should considers the power of buyer , power of new entrants, the
industry rivalry, barganing the power of supplier and threats of substitutes to
have a clear vision of all aspects that may affect the well going of the business on
the market.Talking about the aspect one of then should be analyse properly to
avoid any case of failure on the environment where you operate.
PESTEL analysis is a tool used to analyse and monitor the macroenvironmental (external marketing environment) factors that have an impact on
an organisation. The result of which is used to identify threats and weaknesses
which is used in a SWOT analysis.
PESTEL stands for:
P Political
E Economic
S Social
T Technological
E Environmental
L Legal
Political Factors
These are all about how and to what degree a government intervenes in the
economy. This can include government policy, political stability or instability in
overseas markets, foreign trade policy, tax policy, labour law, environmental law,
trade restrictions and so on. It is clear from the list above that political factors
often have an impact on organisations and how they do business. Organisations
need to be able to respond to the current and anticipated future legislation, and
adjust their marketing policy accordingly.
Economic Factors
Economic factors have a significant impact on how an organisation does business
and also how profitable they are. Factors include economic growth, interest
rates, exchange rates, inflation, disposable income of consumers and
businesses .These factors can be further broken down into macro-economical and
micro-economical factors. Macro-economical factors deal with the management
of demand in any given economy. Governments use interest rate control, taxation
policy and government expenditure as their main mechanisms they use for this.
Micro-economic factors are all about the way people spend their incomes. This
has a large impact on B2C organisations in particular.
Social Factors
Also known as socio-cultural factors, are the areas that involve the shared belief
and attitudes of the population. These factors include population growth, age
distribution, health consciousness, career attitudes and so on. These factors are
of particular interest as they have a direct effect on how marketers understand
customers and what drives them.
Technological Factors
We all know how fast the technological landscape changes and how this impacts
the way we market our products. Technological factors affect marketing and the
management thereof in three distinct ways: New ways of producing goods and
services, new ways of distributing goods and services new ways of
communicating with target markets
Environmental Factors
These factors have only really come to the forefront in the last fifteen years or so.
They have become important due to the increasing scarcity of raw materials,
polution targets, doing business as an ethical and sustainable company, carbon
footprint targets set by governments (this is a good example were one factor
could be classes as political and environmental at the same time). These are just
some of the issues marketers are facing within this factor. More and more
consumers are demanding that the products they buy are sourced ethically, and
if possible from a sustainable source.
Legal Factors
Legal factors include - health and safety, equal opportunities, advertising
standards, consumer rights and laws, product labelling and product safety. It is
clear that companies need to know what is and what is not legal in order to trade
successfully. If an organisation trades globally this becomes a very tricky area to
get right as each country has its own set of rules and regulations.
After you have completed a PESTEL analysis you should be able to use this to
help you identify the strengths and weaknesses for a SWOT analysis.
When you know your strengths and your weaknesses you have a competitive
advantages on the market you can now take this opportunity to avoid threat .
Lets notice that a business is set up to resolve the need of the customers .If at
the first the manager dont have this vision and have the mission to make money
at the begining the business may die few days later, while consumers
expectation ,behaviour should be masters to update all the time the product in
order to satisfy the need and want of the customers.
First of all , do not forget that the success of the business should be extant to
continuing growing of
sale , profit,and long brand of product ect . Also lets
add that all business must thinking about the fact of going international in order
to be corpore company. Why not . ?
Second ,going international is an advantage for the business to gain from the
exhange of international transaction whereas the quality of the product should
have the metrics require, meet a certain kind of standard of quality to stay on the
business. All this aspect should be manage with a high degree of execellent
hence TQM (total quality management).
Finally ,what I have sketched out in this article is the managers real work. As
such it requires that he attack the problem of increasing business effectiveness
systematically with a plan of action, with a method of analysis, and with an
understanding of the tools he needs.

Managing For Business Effectiveness

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