business environment
LESSON 1: INTRODUCTION TO THE BUSINESS ENVIRONMENT
Lesson Objectives:
The factors that impact on business
The internal and external business environment
LESSON 1: The Factors That Impact on Business
According to Brooks and Weatherston (2000) business environment is a general concept which embraces the totality of external environmental forces which may influence any aspect of organizational activity.
BUSINESS ENVIRONMENT
Macro Environment
Micro Environment
Internal Environment
Financiers
Suppliers
Customers
Competitors
Public
Mktg Intermediaries
Mission / Objectives
Management Structure
Internal Power Relationship
Physical Assets & facilities
Business
Decision
Economic
Technological
Global
Demographic
Socio-Cultural
Political
Company image
Human resources
Financial Capabilities
Technological Capabilities
Marketing Capabilities
LESSON 2: The internal and external business environment
The Internal factors:
Any business has certain vision, mission and objectives and a strategy to achieve them.
Formulation of strategy is defined as establishing a proper firm-environment fit. Indeed the objectives should be based on an assessment of the external environment and the organizational factors (internal environment).
Vision
Mission
Objectives
Management Structure
Human Resources
Financial Factors
Company Image and Brand Equity
Micro Environment:
The Micro environment consists of different types of stakeholders - customers, employees, suppliers, marketing intermediaries, competitors. It is also known as the Task Environment and Operating Environment and has a direct bearing on the operations of the firm. Changes in the micro environment will directly affect and impinge on the firm 's activities.
Macro Environment
The macro environment consists of factors which are beyond the control of the business.
There is a symbiotic relationship between business and the environmental factors,
Lesson Objectives:
The factors that impact on business
The internal and external business environment
LESSON 1: The Factors That Impact on Business
According to Brooks and Weatherston (2000) business environment is a general concept which embraces the totality of external environmental forces which may influence any aspect of organizational activity.
BUSINESS ENVIRONMENT
Macro Environment
Micro Environment
Internal Environment
Financiers
Suppliers
Customers
Competitors
Public
Mktg Intermediaries
Mission / Objectives
Management Structure
Internal Power Relationship
Physical Assets & facilities
Business
Decision
Economic
Technological
Global
Demographic
Socio-Cultural
Political
Company image
Human resources
Financial Capabilities
Technological Capabilities
Marketing Capabilities
LESSON 2: The internal and external business environment
The Internal factors:
Any business has certain vision, mission and objectives and a strategy to achieve them.
Formulation of strategy is defined as establishing a proper firm-environment fit. Indeed the objectives should be based on an assessment of the external environment and the organizational factors (internal environment).
Vision
Mission
Objectives
Management Structure
Human Resources
Financial Factors
Company Image and Brand Equity
Micro Environment:
The Micro environment consists of different types of stakeholders - customers, employees, suppliers, marketing intermediaries, competitors. It is also known as the Task Environment and Operating Environment and has a direct bearing on the operations of the firm. Changes in the micro environment will directly affect and impinge on the firm 's activities.
Macro Environment
The macro environment consists of factors which are beyond the control of the business.
There is a symbiotic relationship between business and the environmental factors,
References: Brooks, I., Weatherston, J (2000). The Business Environment. Prentice Hall Baron, D. Business and its Environment (2010). Prentice Hall