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The Business Environment Fifth Edition by Ian Worthington and Chris Britton Further Student Support www.pearsoned.co.uk/worthington Further Student Support www.pearsoned.co.uk/worthington Key features Learn about the latest business issues: technology and e-business; Corporate Responsibility and Socio-Cultural Impacts Amazon; Apply theory to practice through various cases and examples such as Toyota and the mobile phone market. Test your knowledge with self-assessment questions and find useful web links at www.pearsoned.co.uk/worthington. What role do culture, diversity and ethics play in today’s business world? How will unexpected political and economic conditions affect the organization? Globalization of business solutions; What are the consequences of social and technological change? Using well-known examples and case studies from the public and private sectors, this fifth edition of Business Environment addresses these and many other key questions. By challenging students to consider the challenges and opportunities managers face in the business environment, it provides a solid foundation for building a holistic understanding of the business context. ISBN 0-273-70424-9 9 780273 704249 www.pearson-books.com Ian Worthington is Reader and Chris Britton is Reader at Leicester Business School. Senior Lecturer of Department of Strategy and Management at De Montfort University. The Business Environment Fifth Edition The Business Environment Fifth Edition Ian Worthington and Chris Britton and Worthington Britton A dynamic and modern introduction to the business environment; Worthington and Britton comprehensively examine how external influences affect the decisions and activities of organizations today. 0273704249_Cover.qxd 04.18.06 08:46 Page 1
Dynamic Business Law The Essentials 5th Edition Ebook
Business Environment For the fifth time in Business Environment on the partner website www.pearsoned.co.uk/worthington access: ● self-test questions for each chapter ● links to online articles and resources ● online glossary BUEN_A01 .QXD 4/4/ 06 14: Page 58 i
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We work with the best authors to develop the most rigorous training materials in the business. We bring cutting-edge thinking and best learning practices to the global market. Under a number of well-known publications including Financial Times Prentice Hall; We create high-quality print and electronic publications that help readers understand and use their content in their studies or work. For more information on our full range of publications visit www.pearsoned.co.uk BUEN_A01.QXD 24/4/06 1:46 p.m. ii
Fifth Edition Ian Worthington and Chris Britton Leicester Business School; De Montfort University; Leicester Business Environment BUEN_A01.QXD 4/4/06 2:58 PM Page iii
Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE United Kingdom and Associated Companies on the World Wide Web Visit us at www.pearsoned.co.uk. First published in the UK at www.pearsoned.co.uk 1994 Second edition 1997 Third edition 2000 Fourth edition 2003 edition 2006 © Ian Worthington and Chris Britton 1994; 1997, 2000, 2003, copyright 2006 Ian Worthington and Christ Britton with rights to identify the authors of this work. They claimed that under the Designs and Patents Act 1988. all rights reserved. Reprint any part of this publication; stored in a search engine or in any form or by any means; electronic, mechanical, photocopying; No recording or otherwise may be reproduced or otherwise reproduced without permission or limited copies of the publishers. UK Copyright Licensing Agency Ltd; Published by 90 Tottenham Court Road, London W1P 0LP. ISBN-13: 978-0-273-70424-9 ISBN-10: 0-273-70424-9 British Library Edition Cataloging-in-Publication Data A cataloging record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data A catalog 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 Printed in 9.5/13 pt Stone Serif by 30. Printed and bound by Mateu Cromo Artes Graficas, Spain. It is the policy of the publisher to use paper produced from sustainable forests. BUEN_A01.QXD 4/4/06 2:58 PM Page IV
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Full Contents ix Contributors xviii First Edition xix Introduction xx Preface to Second Edition xx Preface to Third Edition xxi Preface to Fourth Edition xxi Preface to Fifth Edition xxii Visitors Guide xxiv Part One Introduction 1 1 Business Organizations: External Environment2: Internal Environment 18 Part Two Context 39 3 Political Environment 50 Macroeconomic Business Environment 50 Social and Cultural Conditions 120 6 Laws 447 18 Monitoring Change 471 Glossary 496 Index 513 Summary BUQ24/BUQ100m. vii
Contributors xviii Preface to the First Edition xix Preface to the Second Edition xx Preface to the Third Edition xxi Preface to the 4th Edition xxi Preface to the 4th Edition xxi Preface to the Fifth Edition xxii Visitors’ Guide xxiv 1 Business Organizations: The External Environment 3 Ian Worthington Learning Outcomes and Key Terms 3 Introduction 4 Business organization and its environment 4 General or related environment 7 Small case: Healthy business . 7 Direct or Operational Environment 9 Business Environment Analysis 10 Case Study: Levi Strauss: Soul Therapy? 10 Central Themes 13 Summary 14 Summary of Key Points 14 Case Study: Shock in the System 15 Review and Discussion Questions 16 Assignments 16 Further Reading 17 2 Business Organizations: The Internal Environment 18 Ian Worthington and Zena Cumberpatch and Key Studies 19 and Management Approaches 19 Organizational Structure 23 Case in point: Is Deutsche Bank changing? 23 Lower Case: Royal Dutch Shell 28 Contents Part One Introduction BUEN_A01.QXD 4/4/06 2:58 pm Page ix
Virtual Organizations 29 Structural Changes 30 Functional Management Perspectives 30 Summary 35 Summary of Key Points 35 Case Study: Creating Global Firms 36 Review and Discussion Questions 37 Assignments 38 Notes and References 38 Further Reading 38 3 Key Terms and Policy Subjects Workomestington 41 Introduction 42 Mini political systems in state democracies 446 Environmental Action 50 Branches or Functions of Government 52 Case Study: Transnational Lobbying 54 Checks and Balances in Democracy 57 A Model of Policy Processes 58 Outline 60 Key Points601 Conclusion: . of a democratic political system: United Kingdom national government 60 Appendix 3.2: Subnational government: United Kingdom local authorities 68 Appendix 3.3: Transnational government: European Union 71 Case study: Left in the cold 7 7 Review and discussion 78 Tasks 78 Notes and references 79 Additional reading 79 4 Macroeconomics; Environment 80 Ian Worthington Learning Outcomes and Key Terms 80 Introduction 81 Economic Systems 82 Eastern Europe: Economies in Transition 86 Political-Economic Synthesis 88 Macroeconomics 90 x Contents Part Two CONTEXTS/BUENX45/Page.
Micro Case: The Global Economic Crisis 96 Government and Macroeconomics: Objectives 97 Micro Case: Income Indicators 103 Government and Macroeconomics: Policies 104 The Role of Financial Institutions 109 Organizations and International Business Organizations 111 Summary 114 Toyota Case Summary 15 UK 116 Review and Discussion Questions 118 Responsibilities 118 Notes and references 119 Further reading 118, Social and cultural context 120 Ian Worthington Learning outcomes and key terms 120 Introduction 121 Demographic background 131 Culture 134 Men’s culture 138 Protest overviews 156 Case study: Call centers 158 Natural resources 164 Outline 167 Summary of key issues 167 Case Study: Resource Prices 169 Review and Discussion Questions 169 Assignments pp. 169_DA20B.
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Notes and References 170 Further Reading 170 7 The Legal Environment 171 Diane Belfitt and Martin Taylor Learning Outcomes and Key Terms 171 Introduction 172 Legal Classification 172 The Small Case: Advice 173 Legal Resources 174 The Legal System: The Courts 176 Jeans-The Small Case: Jeans – Mark Bosman game. 178 Business Organizations and the Law 179 Contract Law: The Basics 180 Agency 183 Law and the Consumer 184 Code of Conduct 190 Summary 190 Summary of Key Points 191 Case Study: Sale of Goods and the Internet 191 Overview and
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