Analysis of Social, Technological, Legal, Ecological, and Organizational Trends

SOCIAL:

• Population development in the relevant countries (important groups, migration…).
• Social-psychological currents (work mentality, propensity to save, leisure behaviour, automation, relevant materials and products).

TECHNOLOGICAL:

• Production technology (trends in the process technology, innovation, automation…).
• The speed of product innovation.
• Substitution technologies (possible innovations, development of costs).
• Recycling technology.

LEGAL:

• Trends in economic policy (tax, compliance, competition laws).
• Trends in social legislation, labour law.
• Importance, freedom and influence of trade unions.

ECOLOGICAL:

It refers to trends in the protection of environment (environmental awareness, environmental impact and environmental legislation). Availability of Energy, Raw material and recycling material are also part of this point.

ORGANIZATION

• Strategic Business Areas (SBA)

SBAs are useful for companies with a wide range of different products which are operating in various markets. Moreover, provides for transparency and reduces complexity.

3-dimensional search area by Abell for the determination of SBA

• Target group - WHO: customers to be appealed (e.g. car industry).
• Needs of the target group – WHAT: which need shall be satisfied by our offer – not the offered products (e.g. Injection pump), but the needs from the customer point of view, (e.g. motor control in general), because technology might change.
• Technology - HOW: procedures how to cover the needs (e.g. Handmade, small machinery, assembling line, roboter-line, buy and sell products…).

SBU’s are organizational units responsible for one or more SBA’s to run a single strategy, act autonomously on a limited range, make up for independent economic areas (Profit enter) and ensure transparency and limit complexity. Although there must be an own market task, i.e. the market must be distinguished from other market segments, be independent from other SBUs, profit contribution must be large enough to justify an independent and possibly, several SBA can be summarized to one single SBU.