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    Business Environment

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    ION GĂNGUȚ
    This document discusses the nature of a business environment and its importance. It defines the business environment as the aggregate of all conditions, events and influences that surround and affect a business. It then describes the key components of the business environment as: The internal environment, which includes factors within a business like its resources and management. The micro environment, which consists of external factors that directly influence the business like customers, competitors and suppliers. The macro environment, which comprises broader forces like economic, technological, political and social factors that shape opportunities and threats. Understanding the full business environment is crucial for businesses to develop strategies, adapt to changes, and analyze competitors effectively.

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    Business Environment

    Uploaded by

    ION GĂNGUȚ
    120 views25 pages
    This document discusses the nature of a business environment and its importance. It defines the business environment as the aggregate of all conditions, events and influences that surround and affect a business. It then describes the key components of the business environment as: The internal environment, which includes factors within a business like its resources and management. The micro environment, which consists of external factors that directly influence the business like customers, competitors and suppliers. The macro environment, which comprises broader forces like economic, technological, political and social factors that shape opportunities and threats. Understanding the full business environment is crucial for businesses to develop strategies, adapt to changes, and analyze competitors effectively.

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    This document discusses the nature of a business environment and its importance. It defines the business environment as the aggregate of all conditions, events and influences that surround and affect a business. It then describes the key components of the business environment as: The internal environment, which includes factors within a business like its resources and management. The micro environment, which consists of external factors that directly influence the business like customers, competitors and suppliers. The macro environment, which comprises broader forces like economic, technological, political and social factors that shape opportunities and threats. Understanding the full business environment is crucial for businesses to develop strategies, adapt to changes, and analyze competitors effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    120 views25 pages

    Business Environment

    Uploaded by

    ION GĂNGUȚ
    This document discusses the nature of a business environment and its importance. It defines the business environment as the aggregate of all conditions, events and influences that surround and affect a business. It then describes the key components of the business environment as: The internal environment, which includes factors within a business like its resources and management. The micro environment, which consists of external factors that directly influence the business like customers, competitors and suppliers. The macro environment, which comprises broader forces like economic, technological, political and social factors that shape opportunities and threats. Understanding the full business environment is crucial for businesses to develop strategies, adapt to changes, and analyze competitors effectively.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 25

    Nature of Competition

    Monopoly Duopoly Monopolistic competition Oligopoly

    BUSINESS CHALLENGES
    Managing Bottom line Meeting stakeholders expectations Developing and retaining top talent

    Creating a customer responsive organization


    Diminishing time to market

    Market agility
    Pricing and quality

    What do you mean by Business Environment???


    The environment of any organization is the aggregate of all conditions, events and influences that surround and affect it. Characteristics of Business Environment: Complex Dynamic Multi-faceted Far- reaching impact

    Why Study Business Environment


    Development of broad strategies to ensure sustainability To foresee the impact of socio-economic changes at the national and international levels on firms ability Analysis of competitors strategies and formulation of effective counter measures To keep oneself dynamic

    Types of Environment
    Internal Environment External Environment
    Micro environment Macro environment Economic Non Economic

    Internal Environment
    Refers to all the factors that are within an organization which impart strengths or cause weaknesses of strategic nature. Controllable factors. These include: Value system

    Mission and Objectives


    Management Structure and Nature

    Components of Internal Environment


    Human Resources Company Image and Brand Equity Other Factors

    Physical Assets and Facilities


    R & D and Technological Capabilities

    Marketing Resources
    Financial Resources

    External Environment
    Includes all factors outside the organization which provide opportunities or pose threats to the organization. Uncontrollable factors.

    Consists of Micro and Macro environment.

    Micro Environment
    It consists of the factors in the companys

    immediate environment that affect the performance of the company.

    Micro Environment Factors


    Suppliers Customers Marketing Intermediaries Competitors Publics Financial Community

    Micro Environment of a typical car manufacturer


    Potential Supplier Components Supplier Local Communities Stakeholders Pressure Groups Car Manufacturer Customers Customers Potential Customers

    Government

    Competitors

    Car Dealers Potential Dealers

    For Customers

    For Supplies

    Macro Environment
    It comprises general trends and forces that may not immediately affect the organization but sooner or later will alter the way organization operates. Macro Environment : Economic Non Economic

    Economic Environment
    Economic stages that exists at a given time in a country. Economic system that is adopted by a country for example. Capitalistic, Socialistic or Mixed Economy. Economic planning, such as five year plans, budgets, etc. Economic policies for example, monetary, industrial and fiscal policies

    Economic Environment
    Economic Indices such as National Income, Per Capital Income, Disposable Income, Rate of growth of GNP, Distribution of Income, Rate of savings, Balance of Payments etc. Economic Problems.
    Functioning of economy.

    Non Economic Environment


    Regulatory Environment Socio- Cultural Environment

    Demographic Environment
    Technological Environment Political Environment

    Non- Economic Environment


    Socio-Cultural Environment Social Customs & Rituals and practices Lifestyle patterns Family structure

    Role & position of men, women, children and aged in family & society

    Non- Economic Environment


    Demographic Environment Growth of population Age Composition Life Expectancy Sex Ratio

    Fertility and Mortality rates


    Inter-state migration

    Macro Environment
    Technological Environment Sources of technology Technological development

    Impact of technology
    Political Environment

    Political parties in power


    Political Philosophy

    Macro Environment
    Regulatory Environment Constitutional framework

    Policies relating to pricing and foreign investment Policies related to the public sector, SSIs, development of backward areas and control of environmental pollution.

    International Environment
    Important factors that operate at global level which have an impact on organization are:

    Growth of world economy


    Distribution of world GDP International institutions IMF,WTO ILO

    International Environment
    Economic relations between nations Global human resource-nature quality of skills, mobility of labor and

    Global technology and quality standards Global demographic patterns

    Overview of Business Environment

    MACRO ENVIRONMENT

    ECONOMIC Environment
    MICRO ENVIRONMENT BUSINESS

    Internal Environment
    Values, Mission & Objectives. Human Resources, Co. Image & Brand Equity

    TECHNOLOGICAL FACTORS

    DEMOGRAPHIC FACTORS MARKETING INTERMEDIARIES SOCIAL CULTURAL FACTORS

    Non - Economic Environment

    Environmental Analysis
    1. Environmental Scanning The process by which organizations monitor their opportunities and threats affecting their business is known as environmental scanning. 2. SWOT Analysis

    Tools for Analyzing the Environment


    PEST Analysis PESTLE STEEPLE
    S - Social T - Technological E - Economic E - Environmental P - Political L - Legal E - Ethical

    Thank You. Wish u have a nice day .

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