Environmental factors & business

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Environmental factors & business

  1. 1. M.P. INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION MBA- 1ST YEAR ( 2ND SEM.) DATE: 5TH MARCH 2011
  2. 2. Environmental Factors & Business Presented By: Archana Priya Nimisha Khatri Sonam Verma
  3. 3. Contents <ul><li>What is business? </li></ul><ul><li>What is environment? </li></ul><ul><li>What is business environment? </li></ul><ul><li>Its Environmental Factors </li></ul><ul><li>Conclusion </li></ul>
  4. 4. What is Business? <ul><li>A business is an organization that provides </li></ul><ul><li>goods and services to others who want or need </li></ul><ul><li>them with a profit motive. It may also </li></ul><ul><li>be understood as an organized effort of </li></ul><ul><li>enterprises to supply consumers with goods and </li></ul><ul><li>services. </li></ul><ul><li>The main purpose of any business is to earn profit. </li></ul>
  5. 5. What is Environment? <ul><li>Environment refers to the surroundings of an </li></ul><ul><li>object. It also refers to the surroundings of a </li></ul><ul><li>physical system that may interact with the </li></ul><ul><li>system by exchanging mass, energy, or other </li></ul><ul><li>Properties. </li></ul>
  6. 6. What is Business Environment? <ul><li>The environment of a business means the </li></ul><ul><li>external forces influencing the business </li></ul><ul><li>decisions. These can be social, political, </li></ul><ul><li>economic or technological factors and these are </li></ul><ul><li>outside the control of the business. </li></ul>
  7. 7. Environmental Factors <ul><li>An identifiable element in the physical, cultural, </li></ul><ul><li>demographic, economic, political, regulatory, or </li></ul><ul><li>technological environment that affects the </li></ul><ul><li>survival, operations, and growth of an </li></ul><ul><li>organization or business. </li></ul>Internal factors Environmental Factors External Factors Micro Macro
  8. 8. Understanding Environment Scanning the environmental factors Politico- Legal Economic Demographic Socio- Cultural Technological Natural MICRO ENVIRONMENTAL FACTORS Suppliers Employees Customer MACRO ENVIRONMENTAL FACTORS Shareholders INTERNAL FACTORS Value System Mission & Vision Competitors
  9. 9. Internal Factors <ul><li>Mission and Vision </li></ul><ul><li>Value system </li></ul><ul><li>Management structure </li></ul><ul><li>Internal power relations </li></ul><ul><li>Human resource </li></ul><ul><li>Financial factors </li></ul><ul><li>Research & Development </li></ul>
  10. 10. External factors <ul><li>The external environmental factors are of two </li></ul><ul><li>Types: </li></ul><ul><li>Micro Factors </li></ul><ul><li>Macro Factors </li></ul>
  11. 11. Micro Factors <ul><li>Customers </li></ul><ul><li>Employees </li></ul><ul><li>Suppliers </li></ul><ul><li>Shareholders </li></ul><ul><li>Competitors </li></ul>
  12. 12. Macro Factors <ul><li>Political-Legal </li></ul><ul><li>Economic </li></ul><ul><li>Social </li></ul><ul><li>Technological </li></ul><ul><li>Cultural </li></ul><ul><li>Natural </li></ul><ul><li>Demographic </li></ul><ul><li>Global </li></ul>
  13. 13. Conclusion <ul><li>The environmental factors have an important impact on the business. </li></ul><ul><li>These factors affects a business a lot. </li></ul><ul><li>The environmental factors are never stable and can change quickly. </li></ul><ul><li>These factors also help in analyzing the changes and implementing them in the business. </li></ul>
  14. 14. <ul><li>India’s progress in 62 years is a matter of legitimate pride…….. </li></ul>

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