External environment, Industry analysis

1. JSPM’s
Rajarshi Shahu College of Engineering
Tathawade , Pune:33
Presentation on
Topic: “ External Environment ”
Department of MBA
Date: 15.04.2020
Presented By :
Name of student: Bhushan Vijay Phirke
Roll Number: 191415
Subject : Industry Analysis and Desk Research
(MBA-Sem II)

2. External Environment
External
Environment

3. What is External environment?
• Meaning: Environment of any Organization is the
aggregate of all the conditions, events and influences
that surrounds and affect it.
• The combination of Internal and External factors that
influence a company’s business and operating
situation.

4. Types of Environment
1. Internal environment
2. External environment
 Micro environment
 Macro environment

5. External Environment
 Factors outside the organization which provide
opportunities or pose threats to the organization
 Factors that can impact the ability of a business or
investment to achieve its strategic goals and
objectives.
 Uncontrollable factors
 Classified into two categories
 Micro
 Macro

6. Micro Environment
 Refers to the environment which is in direct contact
with the business organization and can affect the
routine activities of business straight away
Types of Factors
1. Suppliers
2. Customers
3. Marketing Intermediaries
4. Competitors
5. Financial Intermediaries

7. Micro Environment
SUPPLIERS
supply materials, machine, service and information
used to produce its products and services.
FINANCIAL INSTITUTION
the capital resources that available for the firm
CUSTOMERS
Customers are the persons who buy goods from
company.
COMPETITOR
Competitors are those who also sell same product
as the company or business.

8. Macro Environment
 Refers to the external factors which affects company
and its business and there is no control of company
on these factors.
Types of Factors
 Economic
 Non Economic
1. Political
2. Demographic
3. Socio-Cultural
4. Technological
5. Natural

9. Macro Environment
• ECONOMIC
• The economic environment constitutes of economic
conditions, economic policies, and the economic
system that is important to external factors of
business.
• Economic environment refers to the nature and
direction of the economy within which business
organization are to operate.
• NON-ECONOMIC
• Political and Legal Forces Refers to the political,
government and legal environment. It has close
relationship with the economic system and economic
policy.
• This refers to set of laws, regulations, which influence
the business organizations and their operations

10. Macro Environment
Socio-Cultural Forces
These includes people’s attitude to work and wealth,
ethical issues, role of family, marriage, religion and
education and the social responsibilities of business
Technological Forces
the application of knowledge base which science
provides. It is a well established fact that information
and communication technology has revolutionized
business operations
Political and Legal Forces
Refers to the political, government and legal
environment. This refers to set of laws, regulations,
which influence the business organizations and their
operations.

11. Conclusion
• External Environment:
 Differing external elements affects different
strategies at different times and with varying
strengths
 Only certainty is that the effect of remote and
operating environment will be uncertain until a
strategy is implemented.

12. Thank You..
Questions??