Business environments presentation

4,352 views

Published on

0 Comments
5 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
4,352
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
182
Comments
0
Likes
5
Embeds 0
No embeds

No notes for slide

Business environments presentation

  1. 1. BUSINESS ENVIRONMENTS BY PETUNIA F. MAKHUNGA
  2. 2. WHAT IS BUSINESS ENVIRONMENT? • BUSINESS ENVIRONMENT CONSISTS OF ALL THE FACTORS THAT HAVE A BEARING ON THE BUSINESS SUCH AS THE STRENGTHS, WEAKNESSES, INTERNAL POWER RELATIONSHIPS AND ORIENTATIONS OF THE ORGANIZATION, GOVERNMENT POLICIES.
  3. 3. FEATURES OF BUSINESS ENVIRONMENT  BUSINESS ENVIRONMENT IS THE SUM TOTAL OF ALL FACTORS INTERNAL & EXTERNAL TO THE BUSINESS FIRM THAT GREATLY INFLUENCE THEIR FUNCTIONING  IT COVERS FACTORS AND FORCES LIKE CUSTOMERS, COMPETITORS, SUPPLIERS, GOVERNMENT, AND THE SOCIAL, CULTURAL, POLITICAL, TECHNOLOGICAL AND LEGAL CONDITIONS.
  4. 4.  THE CHANGES UNPREDICTABLE.  BUSINESS ENVIRONMENT DIFFERS FROM PLACE TO PLACE, REGION TO REGION AND COUNTRY TO COUNTRY. EX: POLITICAL CONDITIONS IN INDIA DIFFER FROM THOSE IN PAKISTAN. TASTE AND VALUES CHERISHED BY PEOPLE IN INDIA AND CHINA VARY CONSIDERABLY. IN BUSINESS ENVIRONMENT ARE
  5. 5. Types of environment Internal environment External environment Micro Environment Market environment Macro environment ENVIRONMENT OF BUSINESS
  6. 6. 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
  7. 7. INTERNAL ENVIRONMENT • THE INTERNAL FACTORS ARE GENERALLY REGARDED AS CONTROLLABLE FACTORS BECAUSE THE COMPANY HAS CONTROL OVER THESE BECAUSE THE COMPANY HAS CENTRAL OVER THESE FACTORS; IT CAN ALTER OR MODIFY SUCH FACTORS AS ITS PERSONNEL, PHYSICAL FACILITIES, ORGANIZATION AND FUNCTIONAL MEANS, SUCH AS MARKETING MIX TO SUIT THE ENVIRONMENT.
  8. 8. MICRO ENVIRONMENT MISSION  VISION OBJECTIVES BUSINESS FUNCTIONS MANAGEMENT STRUCTURE ORGANIZATIONAL CULTURE
  9. 9.  A VISION IS A BROAD EXPLANATION OF WHY THE FIRM EXISTS AND WHERE IT IS TRYING TO LEAD ITGIVES THE ORGANISATION A SENSE OF PURPOSE AND A SET OF VALUES THAT UNITE EMPLOYEES IN A COMMON DESTINY.  A MISSION STATEMENT OUTLINES THE FUNDAMENTAL PURPOSE OF THE ORGANISATION.  OBJECTIVES THEREFORE, REPRESENT THE OPERATIONAL SIDE OF AN ORGANISATION
  10. 10. BUSINESS FUNCTIONS REFER TO A SET OF OPERATIONS THAT ARE EXECUTED REGULARLY TO CARRY OUT A PART OF THE MISSION FOR AN ORGANISATION. THIS TERM CAN ALSO BE DEFINED AS THE ESSENTIAL FUNCTIONS SUCH AS SALES AND PRODUCTION THAT AN ORGANISATION CANNOT DO WITHOUT. ORGANIZATIONAL STRUCTURE, COMPOSITION OF BOARD OF DIRECTORS, EXTENT OF PROFESSIONALIZATION OF MANAGEMENT SOMETIME DELAY DECISION MAKING WHILE SOME OTHERS FACILITATE QUICK DECISION MAKING
  11. 11. • ORGANIZATIONAL CULTURE IS THE BEHAVIOUR OF HUMANS WHO ARE PART OF AN ORGANIZATION AND THE MEANINGS THAT THE PEOPLE ATTACH TO THEIR ACTIONS. CULTURE INCLUDES THE ORGANIZATION VALUES, VISIONS, NORMS, WORKING LANGUAGE, SYSTEMS, SYMBOLS, BELIEFS AND HABITS. IT IS ALSO THE PATTERN OF SUCH COLLECTIVE BEHAVIOURS AND ASSUMPTIONS THAT ARE TAUGHT TO NEW ORGANIZATIONAL MEMBERS AS A WAY OF PERCEIVING, AND EVEN THINKING AND FEELING. ORGANIZATIONAL CULTURE AFFECTS THE WAY PEOPLE AND GROUPS INTERACT WITH EACH OTHER, WITH CLIENTS, AND WITH STAKEHOLDERS.
  12. 12. EXTERNAL ENVIRONMENT • MARKET 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 • 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.
  13. 13. o MARKET ENVIRONMENT  SUPPLIERS  EMPLOYEES  CUSTOMERS  COMPETITORS  INTERMEDIARIES  STAKEHOLDERS  COMMUNITY
  14. 14.  SUPPLIERS ARE THOSE WHO SUPPLY THE INPUTS LIKE RAW MATERIALS AND COMPONENTS TO THE COMPANY. THE IMPORTANCE OF RELIABLE SOURCE/SOURCES OF SUPPLY TO THE SMOOTH FUNCTIONING OF THE BUSINESS IS OBVIOUS.  CUSTOMER IS A PERSON WHO PURCHASES AND USES GOODS AND SERVICES  COMPETITORS NOT ONLY INCLUDE THE OTHER FIRMS THAT PRODUCE SAME PRODUCT BUT ALSO THOSE FIRMS WHICH COMPETE FOR THE INCOME OF THE CONSUMERS THE COMPETITION HERE AMONG THESE PRODUCTS MAY BE SAID AS DESIRE COMPETITION AS THE PRIMARY TASK HERE IS TO FULFILL THE DESIRE OF THE CUSTOMERS.
  15. 15.  INTERMEDIARIES INCLUDE MIDDLEMEN SUCH AS AGENTS AND MERCHANTS THAT HELP THE COMPANY FIND CUSTOMERS OR CLOSE SALES WITH THEM. THE MARKETING INTERMEDIARIES ARE VITAL LINKS BETWEEN THE COMPANY AND THE FINAL CONSUMERS  STAKEHOLDER IS A PERSON, GROUP OR ORGANIZATION THAT HAS INTEREST OR CONCERN IN APARTICULAR ORGANIZATION  COMMUNITY IS ANY GROUP THAT HAS AN ACTUAL OR POTENTIAL INTEREST IN OR IMPACT ON AN ORGANIZATION’S ABILITY TO ACHIEVE ITS INTERESTS. EX-MEDIA, CITIZENS, LOCAL PUBLIC ETC.  EMPLOYEES ARE THOSE PEOPLE THAT WORK FOR THE ORGANIZATION.
  16. 16. MACRO ENVIRONMENT ECONOMIC ENVIRONMENT POLITICAL ENVIRONMENT TECHNOLOGICAL ENVIRONMENT SOCIAL ENVIRONMENT GLOBAL ENVIRONMENT
  17. 17. ECONOMIC ENVIRONMENT REFERS TO THE AGGREGATE OF THE NATURE OF ECONOMIC SYSTEM OF THE COUNTRY, BUSINESS CYCLES, THE SOCIO-ECONOMIC INFRASTRUCTURE IT INCLUDES FACTORS SUCH AS CHARACTERISTICS AND POLICIES OF THE POLITICAL PARTIES, NATURE OF CONSTITUTION AND GOVERNMENT SYSTEM RELATING TO BUSINESS POLICIES AND REGULATIONS TECHNOLOGICAL ENVIRONMENT INFLUENCES THE BUSINESS IN TERMS OF INVESTMENT IN TECHNOLOGY,CONSISTENT APPLICATION OF TECHNOLOGY AND THE EFFECTS OF TECHNOLOGY ON MARKETS.
  18. 18. THE SOCIAL DIMENSION OR ENVIRONMENT OF A NATION DETERMINES THE VALUE SYSTEM OF THE SOCIETY WHICH, IN TURN AFFECTS THE FUNCTIONING OF THE BUSINESS. THE GLOBAL ENVIRONMENT REFERS TO THOSE FACTORS WHICH ARE RELEVANT TO BUSINESS SUCH AS WTO PRINCIPLES AND AGREEMENTS, INTERNATIONAL CONVENTIONS, TREATIES, AGREEMENTS, DECLARATIONS, PROTOCOLS, ECONOMIC
  19. 19. • REFERENCES • THAKUR. A, SINGH. D, EKTA, BANSAL. K, MUSTAFA. (2012). BUSINESS ENVIRONMENTS. HTTP://WWW.SLIDESHARE.NET/EKTA2407/BUSINESSENVIRONMENT-11464424. ACCESSED ON 04/03/2014 • MATCH. P. (2013). BUSINESS ENVIRONMENTS. HTTP://WWW.SLIDESHARE.NET/DANIYALT/BUSINESS-ENVIRONMENT-26301669. ACCESSED ON 04/03/2014 • SINGH. A. (2009) BUSINESS ENVIRONMENTS. HTTP://WWW.SLIDESHARE.NET/SINGHANSHU21/FIRST-CHAPTER. ACCESSED ON 04/03/2014 • AHMAD. M.(2012). BUSINESS ENVIRONMENTS. HTTP://WWW.SLIDESHARE.NET/MUNIF/BUSINESS-ENVIRONMENTS. ACCESSED ON 04/03/2014 • SELVA. A. (2013) BUSINESS ENVIRONMENTS. HTTP://WWW.SLIDESHARE.NET/ARUNSELVA11/BUSINESS-ENVIRONMENT-25086837. ACCESSED ON 04/03/2014

×