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The Business Environment

554 Pages · 2006 · 2.95 MB · English

  • The Business Environment

    0273704249_COVER.qxd 18/4/06 08:46 Page 1


    fifth edition


    The Business Environment


    Ian Worthington and Chris Britton


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    A vibrant and contemporary introduction to the


    business environment, Worthington and Britton e


    comprehensively examine how external influences affect


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    the decisions and operations of today’s organisations.


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    What roles do culture, diversity and ethics play in the dynamic world of business


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    today? How do unpredictable political and economic conditions affect an n


    organisation? What are the impacts of globalisation, social and technological change on e fifth edition


    business decisions?


    s The Business Environment


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    Using well-known examples and case studies from the public and private sectors, this fifth



    edition of The Business Environment addresses these key questions and many more. E


    Ian Worthington and Chris Britton


    Encouraging students to consider the challenges and opportunities that managers face in the


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    business environment, it provides a strong basis from which to build an overall understanding of


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    the context of business.


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    Key Features m


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    (cid:2) Learn about the latest issues in business: technology


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    and e-business, corporate responsibility, and socio-


    cultural influences t


    (cid:2) Apply theory to practice through diverse cases and


    examples, such as Amazon, Toyota and the mobile fifth


    phone market edition


    (cid:2) Study online! Test your knowledge through self-assessment


    questions,and find useful weblinks at


    www.pearsoned.co.uk/worthington.


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    Ian Worthington is a Reader and Chris Britton a Principal tog


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    Lecturer in the Department of Strategy and Management at


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    Leicester Business School, De Montfort University.


    ISBN 0-273-70424-9


    Additional student supportat


    www.pearsoned.co.uk/worthington


    9 780273 704249


    www.pearson-books.com Additional student supportat


    An imprint of www.pearsoned.co.uk/worthington BUEN_A01.QXD 4/4/06 2:58 pm Page i


    The Business Environment


    Visit the The Business Environment, fifth edition, Companion Website at


    www.pearsoned.co.uk/worthingtonto find valuable studentlearning


    material including:


    (cid:2) Self-test questions for every chapter


    (cid:2) Links to articles and resources on the Internet


    (cid:2) Searchable online glossary BUEN_A01.QXD 24/4/06 1:46 pm Page ii


    We work with leading authors to develop the


    strongest educational materials in business,


    bringing cutting-edge thinking and best learning


    practice to a global market.


    Under a range of well-known imprints, including


    Financial Times Prentice Hall, we craft high quality


    print and electronic publications which help readers


    to understand and apply their content, whether


    studying or at work.


    To find out more about the complete range of our


    publishing please visit us on the World Wide Web at:


    www.pearsoned.co.uk BUEN_A01.QXD 4/4/06 2:58 pm Page iii


    fifth edition


    The Business Environment


    Ian Worthington and Chris Britton


    Leicester Business School, De Monfort University, Leicester BUEN_A01.QXD 4/4/06 2:58 pm Page iv


    Pearson Education Limited


    Edinburgh Gate


    Harlow


    Essex CM20 2JE


    United Kingdom


    and Associated Companies around the world


    Visit us on the World Wide Web at:


    www.pearsoned.co.uk


    First published in Great Britain in 1994


    Second edition 1997


    Third edition 2000


    Fourth edition 2003


    Fifth edition 2006


    © Ian Worthington and Chris Britton 1994, 1997, 2000, 2003, 2006


    The right of Ian Worthington and Chris Britton to be identified as authors of


    this work has been asserted by them in accordance with the Copyright,


    Designs, and Patents Act 1988.


    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,


    mechanical, photocopying, recording, or otherwise without either the prior


    written permission of the Publishers or a licence permitting restricted copying


    in the United Kingdom issued by the Copyright Licensing Agency Ltd,


    90 Tottenham Court Road, London W1P 0LP.


    ISBN-13: 978-0-273-70424-9


    ISBN-10: 0-273-70424-9


    British Library Cataloguing-in-Publication Data


    A catalogue record for this book is available from the British Library.


    Library of Congress Cataloguing-in-Publication Data


    A catalogue record for this book is available from the Library of Congress.


    10 9 8 7 6 5 4 3 2 1


    10 09 08 07 06


    Typeset in 9.5/13 pt Stone Serif by 30.


    Printed and bound by Mateu Cromo Artes Graficas, Spain.


    The publisher’s policy is to use paper manufactured from sustainable forests. BUEN_A01.QXD 4/4/06 2:58 pm Page v


    For Lindsey, Tom and Georgina and for


    Rachael, Philip, Nick and Megan, with our love BUEN_A01.QXD 4/4/06 2:58 pm Page vi BUEN_A01.QXD 4/4/06 2:58 pm Page vii


    Brief contents


    Full contents ix


    Contributors xviii


    Preface to the first edition xix


    Preface to the second edition xx


    Preface to the third edition xxi


    Preface to the fourth edition xxi


    Preface to the fifth edition xxii


    Guided tour xxiv


    Part One INTRODUCTION 1


    1 Business organisations: the external environment 3


    2 Business organisations: the internal environment 18


    Part Two CONTEXTS 39


    3 The political environment 41


    4 The macroeconomic environment 80


    5 The demographic, social and cultural context of business 120


    6 The resource context 145


    7 The legal environment 171


    Part Three FIRMS 197


    8 Legal structures 199


    9 Size structure of firms 231


    10 Industrial structure 262


    11 Government and business 289


    Part Four MARKETS 313


    12 The market system 315


    13 Market structure 341


    14 International markets and globalisation 367


    15 Governments and markets 402


    Part Five ISSUES 429


    16 The technological environment: e-business 431


    17 Corporate responsibility and the environment 447


    18 Monitoring change 471


    Glossary 496


    Index 513 BUEN_A01.QXD 4/4/06 2:58 pm Page viii BUEN_A01.QXD 4/4/06 2:58 pm Page ix


    Contents


    Contributors xviii


    Preface to the first edition xix


    Preface to the second edition xx


    Preface to the third edition xxi


    Preface to the fourth edition xxi


    Preface to the fifth edition xxii


    Guided tour xxiv


    Part One INTRODUCTION


    1 Business organisations: the external environment 3


    Ian Worthington


    Learning outcomes and key terms 3


    Introduction 4


    The business organisation and its environment 4


    The general or contextual environment 7


    Mini case: A healthy business? 7


    The immediate or operational environment 9


    Analysing the business environment 10


    Mini case: Levi Strauss: jean therapy? 10


    Central themes 13


    Synopsis 14


    Summary of key points 14


    Case study: A shock to the system 15


    Review and discussion questions 16


    Assignments 16


    Further reading 17


    2 Business organisations: the internal environment 18


    Ian Worthington and Zena Cumberpatch


    Learning outcomes and key terms 18


    Introduction 19


    Approaches to organisation and management 19


    Organisation structures 23


    Mini case: Change at Deutsche Bank? 23


    Mini case: Royal Dutch Shell 28


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