The document discusses the business environment and its elements that influence businesses. It identifies key elements like suppliers, financial institutions, customers, competitors, owners, labor unions, community, and government. It also discusses environmental management strategies like independent, cooperative, and strategic maneuvering strategies. The document outlines social responsibilities of businesses to consumers, employees, investors, and the environment. It concludes by outlining challenges businesses may face from the economic, competitive, social/cultural, political-legal, and technological environments.

1. Business Environment Lecture Notes for Business and Management Dr. Fahmy Radhi, MBA

2. Business Environment Business Environment is individual and organization that exist outside the business and have influence direct and indirect to the business.

3. Business Environment Elements Supplier – supply materials, machine, service and information used to produce its products and services Financial institution – the capital resources that available for the firm Customers – targets for the firm to market its products and services Competitor - all of the entities that compete with the firm in marketplace

4. Business Environment Elements Stockholders/owners – persons who are invest money in the firm and represent the high level of management labor union – organization of skilled and unskilled workers The community – people in the area where the firm perform its operation Government – federal, state and local level government that provides not only constraints in the form of law, regulation, and taxes taking but also provides assistance in form of purchases, information and funds.

5. Environmental management Environmental management – how to manage the environmental elements by executing strategies that alter uncertainly environment to a certain extent Environmental Management Strategy: Independent Strategy – carry out its own resources to make better its environment Cooperative Strategy – involve working with other environmental element for the same purpose Strategic Maneuvering – try to alter its environment

6. Environmental management Entry in specific market Wide product mix Merger with competitors Domain Selection Diversification Merger and Acquisition Strategic Maneuvering Consumer representatives Industry Association Co-optation Coalition Cooperative Strategy Product differentiation Aggressive Pricing and Advertising Suits brought against competitors Lobbying Competitive aggression Legal Action Political Action Independent Strategy Example Specific Strategy Basic Strategy

7. Social Responsibility Social Responsibility – the awareness that business activities have an impact on its environment so it should try to balance its commitment in its environment

8. Social Responsibility Responsibility to consumers, such as: the right to safety, the right to be informed the right to choose, the right to be heard Responsibility to employees, such as: The right to safety The right to equality in the workplace, The right to improve its capability

9. Social Responsibility Responsibility to investors, such as: The right to be proper management of funds The right to access information Responsibility to the environment, such as Preventing to water and air pollution, Safe to the land and Forest natural resources Social responsibility, such as Community support Social audit

10. Business Challenges Challenges in the Economic Environment Challenges in the Competitive Environment Challenges in the Social and Culture Environment Challenges in the Political-Legal Environment Challenges in the Technological Environment

11. Challenges in the Economic Environment Macroeconomics Microeconomics The Forces of Supply and Demand The Business Cycle State Budget International Trade

12. Challenges in the Competitive Environment Types of Market Structure Global Competition Dealing with Competitors

13. Challenges in the Social and Culture Environment Changing Population Cultural Values Social Responsibility Consumerism and Ecology Business Ethics

14. Challenges in the Political-Legal Environment Government Role Business and Politics Law enforcement

15. Challenges in the Technological Environment Technology Development Applying Technology Technology Transfer

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