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    Business Environment: Prof. Gurpreet Singh Arora

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    Amit Giri
    The document discusses the various factors of a business environment. It divides the factors into internal environment, micro environment, and macro environment. The internal environment includes value systems of founders, mission/objectives, management structure, internal power relationships, human resources, and company image/brand equity. The micro environment analyzes suppliers, customers, competitors, marketing intermediaries, and publics. The macro environment covers socio-cultural, technological, economic, political/legal, international, and natural factors that can create opportunities or threats for businesses.

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    Business Environment: Prof. Gurpreet Singh Arora

    Uploaded by

    Amit Giri
    32 views20 pages
    The document discusses the various factors of a business environment. It divides the factors into internal environment, micro environment, and macro environment. The internal environment includes value systems of founders, mission/objectives, management structure, internal power relationships, human resources, and company image/brand equity. The micro environment analyzes suppliers, customers, competitors, marketing intermediaries, and publics. The macro environment covers socio-cultural, technological, economic, political/legal, international, and natural factors that can create opportunities or threats for businesses.

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    Business Environment

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    Business Environment

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    The document discusses the various factors of a business environment. It divides the factors into internal environment, micro environment, and macro environment. The internal environment includes value systems of founders, mission/objectives, management structure, internal power relationships, human resources, and company image/brand equity. The micro environment analyzes suppliers, customers, competitors, marketing intermediaries, and publics. The macro environment covers socio-cultural, technological, economic, political/legal, international, and natural factors that can create opportunities or threats for businesses.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    32 views20 pages

    Business Environment: Prof. Gurpreet Singh Arora

    Uploaded by

    Amit Giri
    The document discusses the various factors of a business environment. It divides the factors into internal environment, micro environment, and macro environment. The internal environment includes value systems of founders, mission/objectives, management structure, internal power relationships, human resources, and company image/brand equity. The micro environment analyzes suppliers, customers, competitors, marketing intermediaries, and publics. The macro environment covers socio-cultural, technological, economic, political/legal, international, and natural factors that can create opportunities or threats for businesses.

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    Download as ppt, pdf, or txt
    of 20

    BUSINESS ENVIRONMENT

    http://www.mckinsey.com/insights

    Prof. Gurpreet Singh Arora

    Factors Influencing Business Decision

    Types of Environment

    INTRODUCTION TO BUSINESS ENVIRONMENT


    DEFINITION & MEANING:

    The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. Although there are many factors ,most important of the factors are socio-economic, technological, supplier, competitors, & government. -------- Glueck & Jauch

    Internal Environment
    1. Value System of the Founders It influences--- Choice of Business ----Mission & objectives ------- policies & Practices

    Eg. TATA

    Internal Environment
    2. Mission & Objectives
    They guide business domain, priorities, direction of development, business philosophy, business policy etc. http://www.missionstatements.com/fortune_500_ mission_statements.html

    Internal Environment
    3. Mngmt. Structure & Nature:The organizational structure, the composition of Board of Directors influence business decisions. 4. Internal Power Relationships:Support that mngmt. enjoys from employees, shareholders, Board of directors influences decisions & their implementation.

    Internal Environment
    5. Human Resources: Skill, quality, morale, commitment, attitude of human resource contribute to strength or weakness of an organization. 6. CO.s image & Brand Equity:It matters while raising finance, forming joint ventures, soliciting marketing intermediaries, entering sale or purchase agreement, launching new products.

    Internal Environment

    Other factors:Physical assets R&D & technological capabilities Mkt.ing resources, Financial factors,

    External Environment

    MICRO
    1. Supplier 2. Customer 3. Competitor 4. Marketing Intermediaries 5. Publics

    MACRO
    1. S ocial cultural 2. T echnological 3. E conomic 4. P olitical & legal 5. I nternational 6. N atural

    Micro Environment
    1. Suppliers (reg. supplies, inventory, vendor dev., vertical integration) 2. Customers( creation & sustenance, category, choice of segment) 3. Competitors(desire comp., generic comp., product form comp., brand comp.,) 4. Marketing Intermediaries(agents, merchants, phy. Distri. firms, mkt. service agencies & financial intermidiaries

    Micro Environment
    5. Publics:- It is any group that has an actual or potential interest in or impact on an organization's ability to achieve its interests. Media publics, citizen action publics & local publics are some examples

    SOCIO-CULTURAL
    1. Culture & Globalization 2. Culture determines goods & services 3. People's attitude to business & work 4. Caste system 5. Education 6. Family & marriage 7. Ethics in business 8. Social responsibility 9. Social audit 10.Corporate governance

    Technological Environment

    Technology & Business Increased Productivity Need to spend on R&D Fast changing technology Rise & decline of products & co.s

    Problem of techno structure System complexity Demand for capital Social change High expectation of consumers

    Economic Environment

    Alternative Economic systems Per capita Income & National income Growth Strategy Agriculture, Industry, Services Infrastructure Money & Capital mkt

    Population Economic policies

    Political Environment

    Constitution Role of legislature Role of executive Role of judiciary Role of government The form of the Govt. (federal) The ideology of the ruling party (rightist pro Business, leftist- nationalization) (nationalization of banks, LPG policy, Slowdown of II gen. reforms) The strength of the opposition

    The role and responsibility of the bureaucracy Political stability The velocity of Govt. policies, plan and programmes Socio-economic legislations Politico-legal institutions

    International Environment

    Rising opportunities Improving quality Competition from MNCs Capital & technology transfers How & in which mkt to enter International political factors India & WTO

    THE WTO IMPACT

    GATT/GATS

    TRIMS

    TRIPS

    Liberalization of trade in goods and services

    Liberalization of international investments

    Provides monopoly power to owners of intellectual property

    increases competition from foreign goods/service

    Increases foreign investment and competition from foreign firms

    Target to domestic firms

    Threat to domestic firms

    Benefits consumers

    Benefits the economy

    Increases competitiveness of domestic firms

    Facilitates joint ventures and technology acquisition

    Facilitates global sourcing

    Benefits the domestic firms

    Opportunity for Indian firms to export

    Facilitates foreign investment by Indian firms

    Encourage globalization of Indian firms

    Natural Environment

    Manufacturing depends on physical inputs Mining & Drilling depend on natural deposits Agriculture depends on nature Trade betw. two regions depends on geographical factors Transport & communication depends on geographical factors

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