Business environment
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The document discusses the various internal and external factors that make up an organization's environment. It identifies internal, controllable factors such as resources and capabilities, and external uncontrollable factors in the social, economic, cultural, geographical, technological, political, legal, and ecological domains. These external factors include elements like culture, income levels, natural resources, regulations, climate conditions, and competitive market pressures that all influence the environment.
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Macro environment
The macro environment consists of uncontrollable external factors that influence an organization's decision making and strategies. It includes demographic, economic, natural, technological, political, and cultural forces. Understanding the macro environment is essential for effective planning and competition. It helps businesses identify opportunities and threats from competitors, interest rates, regulations, consumer tastes, weather, and more. The key components of the macro environment are the demographic characteristics of a market, the economic conditions that impact consumer spending, natural resource trends, technological developments, the political landscape, and cultural values of a society.
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Business environmrnt
This document defines and discusses key aspects of business environment. It begins by defining business environment as the relationship between a business and the surrounding factors that influence it, including political, economic, social and technological factors. It then discusses the internal and external components of business environment. The external environment includes micro environment factors like suppliers, customers and competitors, as well as macro factors like economic, social, political, technological and legal conditions. Key internal factors are the business's objectives, management, resources and culture. The document provides an overview of how businesses must assess their environment to develop effective strategies.
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The macroenvironment includes forces outside of a company's control that influence its opportunities and threats. This document discusses several elements of the macroenvironment including demographic trends of an aging population and generational cohorts, economic factors like inflation and unemployment, and the natural environment of scarce resources. Understanding these macroenvironmental forces is important for marketers to respond to changes and shape opportunities in the evolving marketplace.
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The document discusses the key components of a company's marketing environment including internal factors like other business functions and external factors in the micro and macro environment. It defines the marketing environment as all internal and external forces that affect a firm's transactions and relationships. The major sections summarize the microenvironment factors of suppliers, intermediaries, customers and competitors. It also outlines the macroenvironment factors of political, economic, sociocultural, technological and demographic trends that marketing operations must consider.
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International forces in business environment consist of factors like global economic trends, world politics, international rules and regulations, and host country political climate. Key international organizations that influence the business environment include the WTO, IMF, World Bank, and SAFTA. The document also discusses factors in the political, economic, social, technological, legal and environmental environments that affect business operations internationally. These include variables such as exchange rates, corruption levels, economic conditions, social attitudes, the pace of technological change, environmental regulations, and legal compliance requirements across different regions. Understanding these external forces is important for organizations to identify opportunities and threats in the international arena.
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Business environment
- 1. Chapter 1
- 2. Environment means the surroundings, external objects, influences or circumstances under which someone or something exists. Two sets of factors: internal & external.
- 3. Within the organization, Controllable. Example: organizational resources R&D Finanacial capabilities Marketing capabilities Operational capabilities
- 4. Social factors Economic Factors Cultural Factors Geographical Factors Technological Factors Political Factors Legal Factors Ecological Factors Labour Factors Competitive market conditions Globalization
- 5. Culture Values Tastes Preferences Social responsibility
- 6. Per capita income National Income Resource mobilization Exploitation of natural resouces Capital formation Employment generation Propensity to consume Industrial development
- 7. Social practices Religious practices Education, knowledge Rural community norms and beliefs
- 8. Geographical locations Seasonal variations Climatic conditions
- 9. Political Factors • Philosophy and approach of political party. • Eg. TATA NANO SINGUR PLANT • Industrial licenesing • Company formulations • Factory administrations • Payment of wages act etc.
- 10. Ecological Factors • Study of environment • Biotic factors • Abiotic factors Export Import policies Fiscal policies Taxation policies Monetary factors
- 11. LABOUR FACTORS MARKET COMPETITION LOCATIONAL FACTORS