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Enviroment of Business

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ENVIRONMENT OF BUSINESS

ASSIGNMENT

Describe 6 Forces that Operation
Managers go for or look out for in the Environment of their Businesses or Organizations.

There are many forces that Operations managers go for or look for in their business environments. They Include:
1. Threat of New Entrants –
The easier it is for new companies to enter the industry, the more cut-throat competition there will be. Factors that can limit the threat of new entrants are known as barriers to entry. Some examples include:
• Existing loyalty to major brands
• Incentives for using a particular buyer (such as frequent shopper programs)
• High fixed costs
• Scarcity of resources
• Government restrictions or legislation
• Entry protection (patents, rights, etc.)
• Economies of product differences
• Brand equity
• Switching costs or sunk costs
• Capital requirements
• Access to distribution
• Absolute cost advantages
• Learning curve advantages
• Expected retaliation by incumbents

2. Brainstorm Factors
Political Factors to Consider
• When is the country's next local, state, or national election? How could this change government or regional policy?
• Who are the most likely contenders for power? What are their views on business policy, and on other policies that affect your organization?
• Depending on the country, how well developed are property rights and the rule of law, and how widespread are corruption and organized crime? How are these situations likely to change, and how is this likely to affect you?
• Could any pending legislation or taxation changes affect your business, either positively or negatively?
• How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?
• How does government approach corporate policy, corporate social responsibility,

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