2. Business environment means all of the internal and
external factors that affect how the company
functions including employees, customers,
management, supply and demand and business
regulations.
3. Environmental analysis is a strategic tool. It is a
process to identify all the external and internal
elements, which can affect the organizationâs
performance. The analysis entails assessing the level
of threat or opportunity the factors might present.
These evaluations are later translated into the
decision-making process. The analysis helps align
strategies with the firmâs environment.
7. Economic Factors
⢠Interest Rate
⢠Exchange Rate
⢠Taxation
⢠Availability of Credit Facilities
⢠International Trade
⢠Fiscal and Monetary Policies
⢠Per Capita Income
⢠Business Cycles
⢠Level of Unemployment
8. Social Factors
⢠Media views
⢠Tradition
⢠Values & Norms
⢠Attitudes & Opinions
⢠Lifestyle
⢠Religious beliefs
17. Strengths are positive attributes in the internal factor of
your business.
Weaknesses are negative factors in your business that
needs to be improved.
Opportunities are external positive factors which
predicts the prosperity of your business.
Threats are external negative factors that may affect
your business.
18. Businesses can make use of SWOT analysis to know
high performing areas, explore new initiatives, make
smarter decisions, identify the areas of improvement,
know the opportunities and foresee the challenges.
19. Knowing the strength & areas of improvement,
grabbing the opportunities and facing the
challenges are essential factors to be considered
in a business decision making process.