Business Environment and importance of theory and history in Management
PRINCIPLES OF MANAGEMENT
ASSIGNMENT # 1
Business Environment
Importance of Theory and History to managers
Principles of Scientific and Administrative management
Rida Jaffery
BBA (1st semes.)
BUSINESS ENVIRONMENT
All of those factors both internal and external, which influence function of a business. Internal factors include items such as the company’s product or services. Employees, assets and marketing. External factors include competitors, stockholders, customers and economic conditions.
The business environment can affect both its employees and its productivity. i.e, studies have shown that workers in a situation where morale is high will produce a great deal more than workers in unsatisfactory conditions.
The business environment is affected by various factors like: Economical factor, Demographic factor, Ecological factor, Geographical factor, Internal and External factors, etc.
In order to run an organization effectively and efficiently the manager must first thoroughly understand the nature of the organization’s environment.
THE INTERNAL ENVIRONMENT:
The environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment.
The important internal factors which have a bearing on the strategy and other decisions of internal organization of the organization are discussed below:
Value system
The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices.
Mission and vision and objectives
Vision means the ability to think about the future with imagination and wisdom. Vision is an important factor in achieving the objectives of the
ASSIGNMENT # 1
Business Environment
Importance of Theory and History to managers
Principles of Scientific and Administrative management
Rida Jaffery
BBA (1st semes.)
BUSINESS ENVIRONMENT
All of those factors both internal and external, which influence function of a business. Internal factors include items such as the company’s product or services. Employees, assets and marketing. External factors include competitors, stockholders, customers and economic conditions.
The business environment can affect both its employees and its productivity. i.e, studies have shown that workers in a situation where morale is high will produce a great deal more than workers in unsatisfactory conditions.
The business environment is affected by various factors like: Economical factor, Demographic factor, Ecological factor, Geographical factor, Internal and External factors, etc.
In order to run an organization effectively and efficiently the manager must first thoroughly understand the nature of the organization’s environment.
THE INTERNAL ENVIRONMENT:
The environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has control over these factors. It can alter or modify such factors as its personnel, physical facilities, and organization and functional means, like marketing, to suit the environment.
The important internal factors which have a bearing on the strategy and other decisions of internal organization of the organization are discussed below:
Value system
The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices.
Mission and vision and objectives
Vision means the ability to think about the future with imagination and wisdom. Vision is an important factor in achieving the objectives of the