IBDP Business Management Business Organization And Environment Chapter 5 Notes
STUDY NOTES FOR BUSINESS MANAGEMENT – BUSINESS ORGANIZATION AND ENVIRONMENT CHAPTER 5 – EXTERNAL ENVIRONMENT
These notes have specially been curated by expert teachers to simplify and enlighten concepts given in IB Business Management HL. The notes are comprehensive in nature and are sufficient to study the chapter in depth, One need not look for other resources beyond the notes provided on our website which can be accessed for free. The notes for Organizational Objectives IBDP HL are available on our official website and can be downloaded for free.
Business management IBDP is a part of group 3 Individuals and the Society of the IB curriculum. The IBDP Business Management course has been devised for imparting knowledge and understanding of different theories of Business Management and application of various tools and methods. It enables the students to analyze and evaluate business activities at all levels- local, national, or international. The also helps in developing holistic understanding of the business environment today which is complex and fast changing.
The subject covers important characteristics of business organization and business functions of human resource management, finance and accounting, marketing, and operations management. The purpose of the course is to help students develop skills that enable them to think critically and make the right decisions after carefully evaluating and analyzing the issue at hand. It also aims at developing the understanding of the importance of innovation and exploring business from different cultural perspectives.
The chapter on External Environment begins with an introduction to the external environment which consists of factors influencing the working of the organization but are not under the control of the business organization. The chapter discusses Steeple Analysis which is used to assess the threats and opportunities in a business environment by managers followed by the importance of the analysis. Next, we discuss social opportunities and threats and their examples which would include the empowerment of women as a social opportunity and language barrier as a social threat.
Similarly, technological opportunities and threats which are due to technological factors are discussed, Furthermore advancement in technology leading to creation of jobs is examined as an opportunity and risks of technological failure are analyzed as threats. We discuss the factors controlled by the government like inflation, unemployment, economic growth, trade, etc that determine the state of the economy followed by an explanation of environmental opportunities like rainfall and threats like pandemics and epidemics. Political opportunities and threats, legal opportunities and threats, and ethical opportunities and threats are further discussed along with various examples for better understanding in the chapter, thus providing a deep insight to the factors that determine working of an organization.