(MACROECONOMICS) SUBMITTED BY:SUBMITTED TO: AMAN THAKUR Dr. RENUKA DIVYA SINGHSHARMA EKTA KANIKA BANSAL MUSTAFA
What is business Environment? Business environment consists of all those factors that have a bearing on the business such as the strengths, weaknesses, internal power relationships and orientations of the organization, government policies etc….
Features of Business Environment Totality of the external forces Dynamic nature Uncertainty Specific and general forces
Types of environment On the basis of the extent of intimacy with the firm, the environmental factors may be classified in to different types of levels: Internal factors: controllable and direct impact on business External factors: unctrollable and indirect impact on business
Internal Environment Important Internal factors are: Value system Mission and Objectives Management structure and nature Internal Power Relationship Human Resources Company Image Brand Equity
Types of External Environment Micro-environment Macro-environment
Micro-environment Micro environment is also known as task environment and operating environment because the micro environmental forces have a direct bearing on the operations of the firm: Suppliers Financers Customer Marketing Intermediaries Public Competitors
Macro-environment Macro environment is also known as general environment and remote environment. Macro factors are generally more uncontrollable than micro environment factors. When the macro factors become uncontrollable, the success of company depends upon its adaptability to the environment.
Environment Scanning Environmental Scanning is the monitoring, evaluating and disseminating of information from the external and internal environment to key people within the corporation
Techniques for EnvironmentalScanning Verbal and written information Search and Scanning Spying Forecasting Five force analysis
ANALYSIS OF THE BUSINESSENVIRONMENT SWOTs analysis Environmental conditions may be favourable or unfavourable: Opportunity Represents favourable (positive) conditions in micro, market, macro environments Advantageous to firm • Threat Represents unfavourable (negative) conditions in micro, market, macro environments Detrimental to firm 12