1)BUSINESS ENVIRONMENT

-Concept of Business Environment

-Business

-Characteristics of  Business Environment

-Components of Business Environment

-Internal Environment (Micro Environment)

-External Environment (Macro Environment)s

*Task Environment (Stakeholders)

*General Environment

-Analysis of Environment

2)Business

Business denotes activities related to industries,commerce and profession.It is engaged inproduction,purchase and marketing of products.Products can be goods,services,ideas and informations.Products satisfy customers needs and wants.

Goals Of Business:

-Profit

-Growth

-Servival

-Leadership

-Efficiency

-Social Responsibility

 Business Environment

                 Business Environment refers to all internal and external fores which influences the development,performance and outcomes of a business.It consists of forces that influences business to attain its goals.The forces in the Business Environment can be Internal and External.

        “Business Environment is the sum total of the environmental factors which provides an atmosphere for Business.”

                                                                                                                                                                          -V.P Micheal

3)Characteristics Of Business Environment

*Complex

*Dynamic

*Multi-faceted

*Far-reaching impact

4)Components Of Business Environment

·           Increasing uncertainities resulting from increasing complexity.

·           Increasing competition resulting from increasing Globalization.

·           Increasing technological change resulting from increased emphasis on R&D.

The components can be divided into:

a)Internal Environment (Micro Environment)

         Internal Environment consists of conditions and forces within the business organization that affects its performances and outcomes.

b)External Environment (Macro Environment)

        External Environment can be defined as all elements outside an organization that are relevant to operations.

5)External Environment can be divided into:

i)Task Environment

-Customers

-Suppliers-Competitors

-Financial Institutions

-Pressure Groups,etc

ii)General Environment

-Political (P)

-Economical (E)

-Socio-cultural (S)

-Technological (T)

6)Political-Legal Environment:Forces in the political environment consist of factors relating to management of public affairs.

A) Political Environment

a)Political System

b)Political Institution

c)Political Philosophy

d)Pressure Groups

-Legal Environment

a)Businss Laws

b)Courts of Law

c)Law Administrators

B) Economical Environment: Economic environment refers to all economic surroundings that influences business activities.It includes resource allocation,costs and profits of business organizations.

a)Economic System

b)Economic Policies

c)Economic Conditions

d)Globalization

C) Socio-cultural Environment: Business organization operate in the society.They exist in the society to fulfill the needs of society. It refers to all the surroundings that influences business.

a)Social Environment

b)Cultural Environment

D) Technological Environment: Technological environment refers to all the technical surroundings that influences business by methology of converting inputs into outputs.

a)Level of technology

b)Speed of technology change

c)Technology transfer

d)Research & Development

Business Environment & SWOT

      *Strengths

*Weaknesses

*Opportunities

*Threats

7)Analysis of Environment

Environmental analysis is the process by which strategists monitor the economic,legal,competitive,geographic and technical settings to determine opportunities and threats to their firms.

Analysis Process:

-Scanning

-Monitoring

-Forecasting

-Assesement