business enviroment environmental con

1. THE ENVIRONMENTAL CONTEXT OF
MANAGEMENT
Presenters- Aastha Satyal
Rajshree Shakya
Sunaina Acharya

2. BUSINESS ENVIRONMENTAN INTRODUCTION
oBusiness environment is the sum total of all forces
surrounding and influencing the life and development of
an organization.
oBusiness environment consists of forces and conditions
outside the boundaries of a firm.
oA business firm cannot exist and grow without
considering the environmental forces.

3. Business
firm
Feedback
Goods
Services
Profit
Employmen
t
Tax revenue
Capital
Raw
materials
Technology
Labor
Land
Inputs Outputs
Technologic
al
environment
Socio
cultural
environmen
t
Political legal
environment
Economic
environment
A business system and its
environment

4. TYPES OF BUSINESS ENVIRONMENT
Employe
es
Structur
e
Corporate
culture
Share
holder
s
Unions
Task
environment
Competitors
Supplier
s
Distribute
rs
Customers
General
environment
Global
forces
Economic
forces
Political and legal
forces
Internal
environment
External
environment

5. THE EXTERNAL
ENVIRONMENTTask
environment
 Customers
 Suppliers
 Distributors
 Government
 Special interest groups
 Financial institutions
 Media
 Competitors

6. GENERAL ENVIRONMENT
Economic environment- Economic system,
Economic dimensions, Economic policies, Competitive
forces, Business cycles, Capital market
 Socio cultural environment- attitudes & beliefs,
religion, language, education, social organization,
class system
 Political environment- constitution, political parties,
government, government-business relation, political
risk factors, international political events.
 Technological environment- Choice of technology,
needs identification, acquisition, management &
utilization, up gradation & maintenance, Information &
communication technology.

7. EMERGING BUSINESS ENVIRONMENT IN
NEPAL
 Appearances of multinational companies
 Free enterprise system
 Growing private investment in core industries
 Shift toward service sectors
 Emergence of information economy
 The emerging market place scenario

8. Growth of private sector
Newly opened areas for private sectors
Hydropower
- Nepal in only able to produce 0.5% hydropower of its
actual potential.
- Nepal-India power trade agreement
Open sky
- Open sky policy permitting private airlines to operate
air services.
Telecom
-Permitted private and foreign sector to operate
telecommunication in Nepal.

9. Road & Water supply sectors
-Road board act 2001, to allow private sectors to
invest in road construction, transportation and
maintenance.
Other sectors
Industrial, transport, communication, electrics in the
process of transition.
These developments indicate a shift from tradition to
modernity which helps in improving business