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Case study «Competition»

ISSUE

Five years ago your company employed a young computer expert, Geoff Peters. He has worked in the customer service department for the last two years. Essentially he supports a number of key customers doing maintenance and trouble-shooting work. Three months ago he suddenly left the company and he is now working for several of your customers, providing service as an independent computer consultant. His employment contract had a competition clause in it forbidding him from working for any customers for a two-year period after leaving. The meeting has been called to discuss this case and also to see whether any lesson can be learned for the future.

AGENDA

  1. Geoff Peters: report and discussion.

  2. Competition clause

  3. Legal action

  4. Employment contracts

Notes to the agenda

  1. Geoff Peters: report and discussion.

The Personnel Manager will report on the case and then there will be a chance to discuss why Geoff left the company.

  1. Competition clause

The Legal Affairs Manager will clarify the exact meaning of the competition clause and the implications.

  1. Legal action

The meeting will decide whether to take Geoff Peters to court for breach of contract.

  1. Employment contracts

Finally a decision on whether the competition clause needs to be changed.

Brainstorming

Think over the task and sound your decision, providing with effective arguments.

Video Conferencing

The company you work for is concerned about the amount of time staff spend travelling to meetings in other branches of the company, and is looking at alternatives.

You have been asked to make recommendations about introducing video conferencing.

Discuss the situation together and decide:

– what the company needs to know about the meetings that take place at present

– what the advantages and disadvantages of video conferencing might be

– what kinds of practical preparations would be needed before introducing the system.

INDIVIDUAL PROJECT / 3-Minute Pitch:

Recent Perfect Competition Market Models (1 by choice)

Unit 2 theory: «steep Analysis»

«To be successful, STEEP analysis needs to be linked

conceptually and practically to current planning operations»

Benjamin Franklin

STEEP analysis is a business tool that analyses the social, technological, economic, environmental and political/legal aspects of the general business environment that can affect the competitiveness of industries and companies. It is also known as PEST analysis, where PEST stands for political/legal, economic, social and technical factors.

STEEP sectors are not mutually exclusive and the analysis is often considered difficult to do effectively over time because of the range of environmental factors, which are considered to go beyond the direct influence of an individual company.

The social/socio-cultural category includes the cultural background of customers, percentage of the population in different income categories, value systems for the different social classes, birth and death rates.

The technological category includes patents, research and development budgets, the pace of technological change and bandwidth capacity.

The economic category includes the rate of economic growth, the inflation rate, the exchange rate, the interest rate, the availability of capital for small businesses and a country’s balance of payments.

The environmental category includes air and water quality, the level of environmental regulation and the source of energy.

The political/legal category includes factors such as the policies of political parties, activism of government agencies, ability to influence political decisions through lobbying, nature of the power and decision-making structures in countries, public opinion and acts of terrorism.

FOLLOW-ON QUESTIONS…

  1. What is STEEP analysis? Define its categories.

  2. How do companies plan for the future?

  3. Define the Global consumer goods industry

  4. What changes have happened during your lifetime in the way people shop for food?

  5. Which STEEP factors are pushing sales up or down?