Chapter 2 Summary - The Dynamic Environment LEARNING...

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The Dynamic Environment LEARNING OBJECTIVES How one large transnational corporation, Royal Dutch Shell, analyzes its environment. Why the business environment is volatile. How deep historical forces change the business environment. Current trends in seven key environments of business. How ideas about the business environment in the chapter apply to the story of the American Fur Company. SUMMARIZING OUTLINE The basic lesson in this chapter is that business exists in a complex, changing environment. It begins with a story about how one company, Royal Dutch Shell, adapts to change by using scenarios. Then deep historical forces that cause change are discussed. Then the environment of business is broken down into seven elements, called “key environments,” and recent trends in each are discussed. Finally, the case study on “The American Fur Company” invites discussion about how historical forces shape environments and how the business environment has changed. The introductory story is about Royal Dutch Shell PLC. Shell uses a unique method of analyzing its environment. Since the 1970s it has used scenarios , or plausible projections of the future based on assumptions about current trends. In the 1990s Shell planners developed a theory of change in the global business environment based on three strong forces: liberalization (or relaxation of trade restrictions), globalization, and technology.
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This note was uploaded on 11/17/2011 for the course ECONOMICS 103 taught by Professor Tohmass during the Spring '11 term at University of Houston-Victoria.

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Chapter 2 Summary - The Dynamic Environment LEARNING...

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