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  1. 1. • INTRODUCTION • Meaning of business environment • Natural resources and economic development • Principles of resource development
  2. 2. THE DEFINITION OF BUSINESS ENVIRONMENT Business environment includes the ‘climate’ or set of conditions: economic, social, political or institutional which have a direct or indirect bearing on the functioning of business It signifies external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise.
  3. 3. BUSINESS ENVIRONMENTS INCLUDE THREE TYPES: • Micro environment • Market environment • Macro environment
  4. 4. Types of environment Internal environment Micro environment External environment Macro environment
  5. 5. THE INTERNAL BUSINESS ENVIRONMENT The internal environments are the things that happen inside the business. Things like economic factors, social and cultural factors, legal and political factors, also political factors Any company operating in international markets across its national borders actually deals with five sets of environments: domestic internal, domestic external, foreign internal, foreign external and the international business environment comprising of treaties, agreements and conventions. The dynamics of the global marketplace are governed by the interplay of all five. The major difference between domestic and international trade lies in the different operating environments.
  6. 6. ECONOMIC FACTORS The growing economic interdependence among nations, coupled with rapid industrialization of business and globalization of markets have contributed greatly to blur the lines between international trade and foreign investment, between domestic and foreign trade policies, and between foreign and local firms and products. The results have been seen in terms of growing cooperation and competition. Growing economic interdependence among nations has given importance to supportive global economic institutions. These institutions in turn have greatly influenced the economic and trade scenario worldwide.
  7. 7. SOCIAL AND CULTURAL FACTORS The dealing with different people in business is the most vital thing that must be dealing with. A company working in an international business environment has to be in constant touch with the tastes and preferences of its customers and must keep adapting its products and marketing styles to match the same. Cultural can have the factor in different areas of the business because working with different cultural background in the challenge.
  8. 8. LEGAL AND POLITICAL FACTORS Both political and legal systems of a country influence the conduct of business at home and abroad. Any exporting company operating in different countries must face different political and legal conditions.
  9. 9. THE TECHNOLOGICAL FACTOR The use of technology can change the way business work because some technology can change every day. Changing of technology can be the factor in the business.
  10. 10. EXTERNAL ENVIRONMENT Micro environment consists of the actors in the company’s immediate environment that affect the performance of the company. They are more intimately linked with the company. Macro environment consists of larger societal forces that affect all the actors in the company’s micro environment.
  11. 11. THE FEATURES OF MICRO ENVIRONMENT • Suppliers • Customers • Competitors • Marketing intermediaries • Financiers • Public
  12. 12. THE FEATURES OF MACRO ENVIRONMENT • Economic environment • Political • Technological • Social • Global environment environment environment environment
  13. 13. FEATURES OF MARKET ENVIRONMENT • Intermediaries • Consumers • Suppliers • Customers
  14. 14. BUSINESS OBJECTIVES Before we describe business objectives, it is desirable to be clear about related concepts, viz., Vision Mission & Objectives VISION: A Vision is a broad explanation of why the firm exists and where it is trying to lead. A vision gives the organisation a sense of purpose and a set of values that unite employees in a common destiny.
  15. 15. MISSION A Mission statement outlines the fundamental purpose of the organisation. A Mission statement incorporates four elements: 1.Customer needs, or what is being satisfied. Customer groups, or who is being satisfied. 2. The company’s activities, technologies, and competencies, or how the firm goes about creating and delivering value to customers and satisfying their needs. 3. The company’s concern for survival, its philosophy, its selfconcept and its concern for public image.
  16. 16. LIST OF REFERENCES • International Business environment,2007. Assessment. Excel books • Business Environment, Dr V. Tripathi. SMS