MODULE 4

• As soon as a business is established, it creates contacts with the business environment through customers, employees, and suppliers
• The more successful a business is, the more contacts it makes, including competitors, authorities, and new products and markets
• An expanded perspective of the business environment can be advantageous in formulating a strategy
• For businesses, an implicit, superordinate objective is to make a profit, essential for continued existence
• To gain profit and retain market position, companies must satisfy customer needs and wants to build a loyal customer base
• Customers seek better quality products and services, highlighting the need for continuous innovation for businesses to remain competitive
• Businesses aim to lower operating costs to maximize profit, but must carefully consider reducing costs to avoid cutting performance of other necessary processes like Research and Development
• Businesses aim to lower capital costs to maximize profit, examples include reducing procurement costs in manufacturing and employing trucking services rather than buying their own
• Lead time is the amount of time that goes by from the start to finish of any given process in business
• Business objectives are pursued in an environment with characteristics like slow economic growth, relentless cost competition, globalization of key industries, government and consumer pressures, changing consumer expectations, increasing market complexity, and faster technological change
• Managers trained as engineers are well-equipped to help companies succeed in achieving aims in the business environment
• Two influences that significantly determine the engineer's role are the location of the organization in the supply chain and the type of organization (product or project-based)
• In a product-based company, the production schedule is based on sales forecasts
• The primary purpose of any supply chain is to satisfy customer needs and generate profits, involving manufacturers, suppliers, transporters, warehouses, retailers, and customers
• A SWOT analysis can offer helpful perspectives at any stage of an effort in a business
• In project-based organizations, the SMEAC tool is used to unify decision-making, communication, and dissemination processes without discouraging individual leadership and communication styles
• Engineers have capabilities that can lift up business industries by utilizing their strengths and improving weaknesses in handling business
• Customer satisfaction and improved quality are inseparable in business, with engineers playing a crucial role in meeting quality aspirations through product and process design
• 7 business objectives

  Profit

  Greater customer satisfaction

  Higher Quality Products

  Lower operating cost

  Lower capital cost

  Shorter lead times

  Survival
• Slow economic growth: This refers to a situation where the overall economy is expanding at a sluggish pace. In such an environment, businesses may face challenges in generating revenue growth as consumer spending and investment levels are restrained. It can also lead to reduced demand for goods and services, increased unemployment rates, and tighter credit conditions.
• Relentless cost competition: In this scenario, businesses face intense pressure to reduce costs in order to remain competitive in the market. Competitors continuously seek ways to offer products or services at lower prices without compromising quality. This can result in thin profit margins and requires businesses to constantly innovate and streamline operations to maintain profitability.
• Government and consumer pressures: Governments enact regulations and policies that can directly impact businesses, ranging from taxation and environmental standards to labor laws and trade policies. Moreover, consumers are becoming more socially and environmentally conscious, leading to increasing pressure on businesses to operate ethically and sustainably. Adapting to these expectations requires businesses to be agile and responsive to changes in regulations and consumer preferences.
• Changing consumer expectations: Consumer preferences and behaviors are constantly evolving, driven by factors such as technological advancements, demographic shifts, and cultural trends. Businesses must stay attuned to these changes and adapt their products, services, and marketing strategies accordingly to

  remain relevant and competitive in the marketplace.
• Increasing market complexity: Markets are becoming more complex due to factors such as globalization, technological innovation, and shifting consumer preferences. This complexity can manifest in various forms, including fragmented customer segments, rapid changes in demand patterns, and the emergence of new competitors and business models. Navigating this complexity requires businesses to

  possess strong analytical capabilities and strategic foresight.
• Faster technological change: Technology is advancing at an unprecedented pace, disrupting traditional business models and creating both opportunities and threats for businesses. New technologies such as artificial intelligence, blockchain, and the

  Internet of Things are revolutionizing industries and reshaping the competitive landscape. To stay ahead, businesses need to embrace innovation, invest in emerging technologies, and adapt their processes and operations to leverage the benefits
• Two business functions

  location of the organization in the 'supply chain'

  type of organization
• Location of the organization in the supply chain:

  The organization's position in the supply chain dictates the focus of manager-engineer roles. For manufacturers, managers emphasize supply chain management while engineers work on product design and process optimization. Distributors or retailers may prioritize inventory management and logistics coordination for managers, and warehouse layout design or transportation optimization for engineers.
• Type of organization:

  The type of organization influences the breadth and specialization of manager-engineer roles. In large corporations, managers have specialized roles overseeing departments while engineers work on specialized projects. Small startups often see managers and engineers with broader responsibilities, wearing multiple hats. In nonprofit or government organizations, managers focus on strategic planning while engineers deliver technical solutions to fulfill missions or regulatory requirements.
• Supply chain is a system of organizations, people, activities, information, and resources that work together to provide a product or service to a customer
• Types of organizations

  Product based companies

  Project based companies
• SWOT meaning

  Strengths

  Weakness

  Opportunities

  Threats
• SMEAC meaning

  Situation

  Mission

  Execution

  Administration

  Communication

  Questions