Introduction to business environment
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- Bu sahifa navigatsiya:
- TYPES OF ENVIRONMENT Internal Environment External Environment Micro Environment Macro Environment EXTERNAL ENVIRONMENT
- BRIEF COMPARISON (MICRO – MACRO)
- What is Environmental Analysis
- STRATEGIC ANALYTICAL TOOLS
INTRODUCTION TO BUSINESS ENVIRONMENT
WHAT IS BUSINESS ENVIRONMENT?
TYPES OF ENVIRONMENT?
Suppliers are the persons who supply raw company.
Customers are the persons who buy goods from company.
Market intermediaries are those person who company to sell its products.
Competitors are those who also sell same product as the company or business.
Group of people who
or who can show their
interest to buy the products of
Are those institutions who provide loan, credit and advance to company.
The economic environment
constitutes of economic
conditions, economic policies, and the economic system that is important to external factors of business.
Economic environment refers to the nature and direction of the economy within which business organisation are to operate.
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Political and Legal Forces
Refers to the political, government and legal environment. It has close relationship with the economic system and economic policy.
This refers to set of laws, regulations, which influence the business organizations and their operations
of the population.
Demography refers to study Demographic factors are as below:
Socio-cultural environment is an important factor that should be analysed while formulating company business strategies. These includes people’s attitude to work and wealth, ethical issues, role of family, marriage, religion and education and the social responsibilities of business
Technological forces or factors could be said to be the most pervasive in the environment. Technology refers to the application of knowledge base which science provides. It is a well established fact that information and communication technology has revolutionized business operations
The natural environment includes geographical and ecological factors that influence the business operations. These factors include the availability of natural resources, weather and climatic condition, location aspect, topographical factors, etc
BRIEF COMPARISON (MICRO – MACRO)
What is Environmental Analysis?
internal elements, which can affect
a process to identify all the external and
entails assessing the level
The analysis of
opportunity the factors might present
STRATEGIC ANALYTICAL TOOLS
It a process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate strategy.
Examples of Analytical Method used in Strategic Analysis
This is external
entails learning about various external which affect the organization.
These include such as
environmental organizations and tax
Other political factors are trade restrictions and political stability
These affect the cost of capital and purchasing power of an organization. Economic factors include economic growth, interest rates, inflation and currency exchange rates
These impact on customer’s need and the potential market size for an organization’s goods and services. Social factors include population growth, age demographics and attitude towards health.
These influence barriers to entry, make or buy decisions and investment in innovation, such as automation, investment incentives and the rate of technological change.
This factor has
both external and
internal sides. There are certain laws that affect the business/organization environment in a certain country while there are certain policies that companies maintain for themselves.
this factor includes are determined
all those that by more the
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