at Fullerton India Credit Company ltd. on Aug 10, 201
http://www.slideshare.net/anu070886/external-envt2
by Anuradha Gupta...
What is business environment?
Business environment includes the ‘climate’ or set of conditions:
economic, social, politica...
What do you mean by Business
Environment??

 The environment of any organization is “ the aggregate of all conditions,
ev...
Types of environment

External environment

Internal environment

Micro environment

Macro environment

ENVIRONMENT OF BUS...
Internal environment
The internal environment is the environment
that has a direct impact on the business.
 Important int...
 Value system
 Vision, Mission & Objective
Ranbaxy’s mission: “ to become a
research based international
pharmaceutical company”- has

...
 Management structure & nature
Organizational structure, composition of
board of directors, extent of
professionalisation...
 Internal Power Relationship
The amount of support the top
management enjoys from different
levels of employees, sharehol...
 Human resources
The characteristics of human
resources like skill, quality, morale,
commitment, attitude etc. could
cont...
 External environment
 Micro environment consists of the actors in the

company’s immediate environment that affect the
...
o

Micro environment

Suppliers
Customers
Competitors
Marketing intermediaries
Financiers
Public
 Suppliers:

 An important force in the micro environment of a

company is the suppliers, i.e., those
who supply the inp...
 Customers:
 The major task of a business is to create and sustain
customers. A business exists

only because of its cus...
 Competitors:

 Competition not only include

the other firms that produce
same product but also those
firms which compe...
 Marketing Intermediaries

 The marketing intermediaries

include middlemen such as
agents and merchants that help
the c...
 Financiers:
The financiers are also important factors of internal
environment. Along with financing
capabilities of the ...
 Public :


A public is any group that has an
actual or potential interest in or
impact on an organization’s ability to
...
Macro environment






Economic environment
Political environment
Technological environment
Social environment
Globa...
Economic environment

 Economic environment refers to the

aggregate of the nature of economic
system of the country, bus...
Political environment
 It includes factors such as

characteristics and policies of the
political parties, nature of
Cons...
Technological environment
 The business in a country is greatly influenced by the

technological development.
 The techn...
Social Environment
 The social dimension or environment of a nation
determines the value system of the society which, in ...
Global environment


The global environment refers to those factors which are
relevant to business such as:



WTO princ...
Macro environment

BUSINESS
Palit,S .Nov 25,2013 Management Student at
Amity Business School, Noida
Aniali, P. Aug 10,201 Student- Pursuing MBA ( HR,
...
Nhlaka
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Nhlaka

  1. 1. at Fullerton India Credit Company ltd. on Aug 10, 201 http://www.slideshare.net/anu070886/external-envt2 by Anuradha Gupta, Senior Research Analyst at VCCEdge.com on Aug 29, 2010
  2. 2. What is 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. 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.”  In other words , business environment is individual and organisation that exists outside the business and have influence direct and indirect to the business.
  4. 4. Types of environment External environment Internal environment Micro environment Macro environment ENVIRONMENT OF BUSINESS
  5. 5. Internal environment The internal environment is the environment that has a direct impact on the business.  Important internal factors which have a bearing on the decisions of a business firm and which are generally controllable because the company has control over these factors:       Value system Vision, mission and objectives Management structure and nature Internal power relationship Human resources Company image
  6. 6.  Value system
  7. 7.  Vision, Mission & Objective Ranbaxy’s mission: “ to become a research based international pharmaceutical company”- has driven it to enter the foreign markets and development. Thus the business domain of the company, priorities, direction of development, business philosophy, business policy etc,
  8. 8.  Management structure & nature Organizational structure, composition of board of directors, extent of professionalisation of management sometime delay decision making while some others facilitate quick decision making. Board of directors is the highest decision making body and it overseas performance of the organization and so its quality is very important. The share holding pattern can also have important managerial implications.
  9. 9.  Internal Power Relationship The amount of support the top management enjoys from different levels of employees, shareholders and board of directors have important influence on the decisions and their implementation. For example: relationship between the members of the board of director
  10. 10.  Human resources The characteristics of human resources like skill, quality, morale, commitment, attitude etc. could contribute to the strength and weakness of an organization Ex: Some organizations find it difficult to carry out restructuring or modernization because of resistance by employees whereas they are smoothly done in some others.
  11. 11.  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.
  12. 12. o Micro environment Suppliers Customers Competitors Marketing intermediaries Financiers Public
  13. 13.  Suppliers:  An important force in the micro environment of a company is the suppliers, i.e., those who supply the inputs like raw materials and components to the company. The importance of reliable source/sources of supply to the smooth functioning of the business is obvious.
  14. 14.  Customers:  The major task of a business is to create and sustain customers. A business exists only because of its customers. The choice of customer segments should be made by considering a number of factors including the relative profitability, dependability, stability of demand, growth prospects and the extent of competition. The business firm should not be dependent on a single customer
  15. 15.  Competitors:  Competition not only include the other firms that produce same product but also those firms which compete for the income of the consumers the competition here among these products may be said as desire competition as the primary task here is to fulfill the
  16. 16.  Marketing Intermediaries  The marketing intermediaries include middlemen such as agents and merchants that help the company find customers or close sales with them. The marketing intermediaries are vital links between the company and the final
  17. 17.  Financiers: The financiers are also important factors of internal environment. Along with financing capabilities of the company their policies and strategies, attitudes towards risk , ability to provide non-financial assistance etc. are very important.
  18. 18.  Public :  A public is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its interests. Ex-media, citizens, local public etc.  NGOs have been protesting against child labour, cruelty against animals, environmental problems, deindustrialization resulting from imports etc.
  19. 19. Macro environment      Economic environment Political environment Technological environment Social environment Global environment
  20. 20. Economic environment  Economic environment refers to the aggregate of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc. The successful businessman visualizes the external factors affecting the business, anticipating prospective market situations and makes suitable to get the maximum with minimize
  21. 21. Political environment  It includes factors such as characteristics and policies of the political parties, nature of Constitution and government system relating to business policies and regulations.  Important economic policies such as industrial policy, policy towards foreign capital and technology, fiscal
  22. 22. Technological environment  The business in a country is greatly influenced by the technological development.  The technology adopted by the industries determines the type and quality of goods and services to be produced and the type and quality of plant and equipment to be used. Technological environment influences the business in terms of investment in technology,consistent application of technology and the effects of technology on markets.
  23. 23. Social Environment  The social dimension or environment of a nation determines the value system of the society which, in turn affects the functioning of the business.  Sociological factors such as costs structure, customs and conventions, mobility of labour etc. have farreaching impact on the business. These factors determine the work culture and mobility of labour, work groups etc.
  24. 24. Global environment  The global environment refers to those factors which are relevant to business such as:  WTO principles and agreements  International conventions  Treaties, agreements, declarations, protocols, economic  Sentiments in other countries, hike in crude oil prices etc.
  25. 25. Macro environment BUSINESS
  26. 26. Palit,S .Nov 25,2013 Management Student at Amity Business School, Noida Aniali, P. Aug 10,201 Student- Pursuing MBA ( HR, Finance ) at Intern at Fullerton India Credit Company ltd. Gupta, A. Aug 29,2012Senior Research Analyst at VCCEdge.com

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