business environment

PowerPoint Presentation: 

By (Dr) Mohd. Quadir Mohiuddin Associate Professor BUSINESS ENVIRONMENT

Business Environment: 

Business Environment Business Environment consists of the climate or set of factors such as economic, social, political or institutional in which business operations are conducted. Business environment usually covers: Economic environment Social environment Political environment Technological environment Ethical environment Physical environment

External factors or influences.: 

External factors or influences . A business does not operate in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known as external factors or influences . These will affect the main internal functions of the business and possibly the objectives of the business and its strategies

Micro Environment: 

Micro Environment The micro Environment is also known as “Task Environment or “Operating Environment. The Micro Environment consists of the factors or actors in the business firms immediate environment that affect the performance of the firm. The Micro Environment include the suppliers, marketing intermediaries, competitors, customers and the public

Micro Environment: 

Micro Environment

PowerPoint Presentation: 

Suppliers: Suppliers are the persons who supply the inputs like raw-materials and components to the business firms. Market intermediaries: Marketing Intermediaries are the vital links between the business firm and final consumers. It includes Middle men: Agents and Merchants who help the company to find the customers and finalise the sales with them are middlemen. Physical Distribution firms: Ware houses and transport firms which assists the business firm in stocking the goods and moving the goods from the places of their origin to their destination are known as physical distribution firms. Marketing services agencies: These includes advertising agencies, market research firms, media firms and consulting firms

PowerPoint Presentation: 

Public : A public is any group that has an actual or potential interest in or impact on organisations ability to achieve its interest Customers includes like individuals, house holds, government agencies, retailers, wholesalers, producers, distributors etc.,

Macro-environment: 

Macro-environment

PowerPoint Presentation: 

Macro-environment: broad environmental factors. PESTEL framework (& others) look at the way in which future trends in the - political, - economic, - social, - technological, - environmental and - legal environments

Macro-environmental influence – The PESTEL frame work: 

Macro-environmental influence – The PESTEL frame work

The Environment: 

19 The Environment Political Environment Form of government Political stability Foreign policy State companies Role of military Level of terrorism Restrictions on imports/exports Economic Environment Economic system Stage of development Economic stability GNP Int’l financial standing Monetary/fiscal policies Foreign investment

The Environment: 

20 The Environment Regulatory Environment Legal system Prevailing int’l laws Protectionist laws Tax laws Role of contracts Protection for proprietary property Technological Environment Level of technology Availability of local technical skills Technical requirements of country Appropriability Transfer of technology Infrastructure Environmental protection

ECONOMIC ENVIRONMENT: 

ECONOMIC ENVIRONMENT There is a close relationship between the success of a business and the economic and legal environment around it. The economic environment includes the structure of the economy; the industrial, agricultural, tariff, pricing, and other trade policies of the Government of the country; the growth and pattern of national income and its distribution; the conditions prevailing in the agricultural, industrial and service sectors; the position of the balance of trade and the balance of payments; and a host of other conditions of the economy

PowerPoint Presentation: 

Economic Environment Economic Environment Political and Legal Environment Social Environment Natural Environment Technological Environment Competitive Environment

I. The Economic Environment*: 

I. The Economic Environment* Major Economic Forces Recession Inflation Deflation

The Sociocultural Environment: 

The Sociocultural Environment Pervades all aspects of a society Influences both national and international marketing channels Influences wide variations among channel structures worldwide

Sociocultural Developments: 

Sociocultural Developments Population Age Patterns Ethnic Mix Educational Trends Family or Household Structure U.S. pop. Becoming both younger & older # of minority-owned businesses Levels = people more demanding Smaller & more varied Role of Women Importance of Time # = changing shopping needs

The Technological Environment: 

The Technological Environment Help retailers & wholesalers closely monitor success or failure of products they handle Scanners Computerized inventory management Portable computers

The Technological Environment: 

The Technological Environment EDI - Electronic Data Interchange • Links together channel information systems • Provides real-time responses • Enhanced by Internet = Enhanced Distribution Efficiency

The Technological Environment: 

The Technological Environment Accelerating technology “Computer sales People” Mobile robots 3-D modeling Ultra-wideband technology