Environmental factors

1. Environmental factors
Presented
By
Sowndarya shree
A.S

2. Introduction:
Business environment means all of the internal and
external factors that affect the company functions
including employees, customers, management, supply
and demand & business regulations.
SWOT analysis.

3. Definitions:
Business environment is “the total of all things
external to firms and industries which affect their
organization and operations”.
- Bayard O ‘Wheeler
Business environment encompasses the climate or
set of conditions, economic, social. Political, or
institutional in which the business operations are
conducted.
- Arthur M. Weimer

4. Types of business environment:
Business
environment
Micro
environment
Macro
environment
Internal
environment
External
environment

5. Internal environment:

6. Internal environment:
Meaning:
Internal environment refers to the culture, members, events and
factors within an organization that has the ability to influence the
decisions of the organization, especially the behavior of its human
resource.
5 environmental factors:
Exposure to hazardous substances in the air, water, soil, and food.
Natural and technological disasters.
Climate change.
Occupational hazards.
The built environment.

7. Factors of internal environment:
1. Value system:
Value system represents a basic belief that a particular conduct is
personally or socially preferable or not. Values are important
because they influence our perception.
Example: Is punishment is right or wrong.
If a person likes power, is it good or bad.

8. 2. Vision and objective:
The vision and objectives of a business guides its operations
and strategic decisions.
Example ‘Amul the taste of India’ Gujarat Co-operative Milk
Marketing Federation GCMMF

9. 3. Internal power relation:
The relations among board members , between board members and the
CEO and the level of support enjoyed by the board from its’ stakeholders
namely employees and shareholders are significant factors which affects
decision making and its implementation in an organization.
4. Company image:
1. Introducing new products
2. Selecting new agents and dealers
3. Expanding and entering new markets both domestic and
international, raising finance etc.

10. External environment:
All factors outside the business which have a bearing on
the working of a business can be termed as the external
environment.
This is subdivided into:
1. Micro or task environment
2. Macro or general environment.

11. Micro environment:

12. Micro environment:
This refers to those factors which are in the immediate
environment of a business affecting its performance. These
include the following:
1. Suppliers
2. Customers
3. Financiers
4. Competitors
5. Marketing channel members
6. Public

13. Macro environment:

14. The general or overall environment in which the business
operates.
The success of a business is dependent on its ability to adapt to
the macro environment as these are uncontrollable factors.
They offer enormous opportunities to business and also poses
serious threats to business.
The general or remote environment factors are as follows;
1. Economic factors--- (per capita income, capitalistic, socialistic,
mixed, Monetary and fiscal policy, GDP, GNP etc…)
2. Geo physical factors ---(Natural resources, weather and
climatic conditions etc..)
3. Political and legal environment
Macro environment:

15. 1) The social institutions and groups
2)Family structure prevalent in the society
3)Role of marriage as an institution
4)Caste system in the society
5)Customs , beliefs and values
6) Demographic factors which includes the size, composition, literacy
level, distribution and mobility of the population
7) The lifestyle of people and their tastes and preferences.
4. Socio cultural environment: