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Business environment


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Published in: Technology, Business

Business environment

  2. 2. 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….
  3. 3. Features of Business Environment Totality of the external forces Dynamic nature Uncertainty Specific and general forces
  4. 4. 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
  5. 5. Internal Environment Important Internal factors are: Value system Mission and Objectives Management structure and nature Internal Power Relationship Human Resources Company Image Brand Equity
  6. 6. Types of External Environment Micro-environment Macro-environment
  7. 7. 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
  8. 8. 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.
  9. 9. The ExternalEnvironment
  10. 10. Environment Scanning Environmental Scanning is the monitoring, evaluating and disseminating of information from the external and internal environment to key people within the corporation
  11. 11. Techniques for EnvironmentalScanning Verbal and written information Search and Scanning Spying Forecasting Five force analysis
  12. 12. 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
  13. 13.  Thank You