LECTURE 3 (24 SEPT 2013)

The third week of lecture...
Chapter 3

Ok.. After finished already the chapter 1 & 2, we move to chapter 3. The topic was 
"Evaluating a company's external environment". What I have learnt from this topic was about PESTEL. What was pestel? Pestel was 6 principle of macro environment. Pestel stand for:
P-political factors that influence to business or economy.
E-economic conditions
S-socio cultural forces
T-technological factors
E-environmental factors
L-legal/regulatory conditions
Make sure before we run our business, doing first an industry analysis. Other than that we continued to 
"FIVE FORCES". What was the five forces? The five competitive forces was competition from:
1- rival sellers
2- potential new entrants



3- producers of substitute products
4- supplier bargaining power
5- customer bargaining power

Did you know why these five forces was important? Because... These factors could tell us "how strong the industry's competitive forces are?" either the industry conducive or not.



*NPL - A loan on which the borrower is not making interest payments or repaying any principal. At what point the loan is classified as non-performing by the bank, and when it becomes bad debt, depends on local regulations. Banks normally set aside money to cover potential losses on loans (loan loss provisions) and write off bad debt in their profit and loss account. In some countries, banks that have accumulated too many NPLs are able to sell them on - at a discount - to specially established asset management companies (AMCs), which attempt to recover at least some of the money owed.

tq...:)