Factors affecting the operations and management of a business constitute the business environment. Environmental factors in a business can range from political factors, social factors, economic factors, technological factors and cultural factors. The environmental factors can be categorized into specific factors and general factors. Specific factors are environmental factors affecting a particular organization, while general factors affect all businesses in the industry. Internal factors affect the business directly, e.g., value system, internal relationships, missions, objectives, etc. Of the three internal environmental factors, the organizational value system is the easiest one to change if need be. External factor affect the business indirectly. They are economic factors, technological factors, competition, etc.
Business Environment Notes For Mba 1st Sem 26.pdf
Environmental factors can have positive or negative impacts on a business. When environmental factors do not favor business operations, managers need to develop alternate ways for revenue generation. For this reason, managers often have contingency plans to deal with unexpected environmental factors. Some environmental factors that can influence a business are the Availability of natural resources, waste disposal, climate change, and the green agenda. Climate change and the green agenda can be classified as external factors, whereas availability of natural resources and waste disposal are internal factors.
Four major environmental factors that affect a business are the economic, social, political, and technological factors. Economic factors include things like interest rates and inflation rates. Social factors include things like culture and demographics. Political factors include things like government regulations and policies. Technological factors include advances in technology or changes in how people use technology.
Business environments consist of all those factors that have a bearing on the business. The term business environment implies that internal and external factors have an impact on the individual organization. A business environment includes both specific and general factors. Specific factors affect the individual organization in its day-to-day operations. General factors have an impact on an entire industry and affect individual organizations equally.
The business environment involves all the factors affecting the operation and management of a business organization. These factors affect the day-to-day running of a business and can impact an organization positively or negatively. For example, factors such as customer needs and expectations can help a business improve the quality of its products to suit customers. Alternatively, certain government interventions, like employment and labor laws, can limit the operations of business organizations.
Environmental factors in business are the conditions that exist in a business environment. The major environmental factors in business are technological factors, economic factors, social factors, political factors and cultural factors. These environmental factors are further classified as either specific factors or general factors. Specific factors influence the operations and management of an individual business organization. They are factors like the company's location, the type of industry the company is in, and the number of competitors there are in that industry. In contrast, general factors are the external forces to a business affecting all organizations within a specific market niche in the entire business industry. These factors include Government regulations, market trends, competition, changes in technology, economic situation, the business environment, and customers' needs and expectations.
Businesses are affected by environmental factors that can impact the business directly or indirectly. Examples of environmental factors affecting business include employees, competitors, suppliers, customers' needs, owners, government regulations, market trends, technological developments, social factors, and economic factors. The environmental factors affecting business are classified into two broad categories, i.e., internal factors of a business and external factors of a business. Internal factors directly affect businesses, while external factors indirectly affect the operations of businesses.
Sometimes business organizations receive subsidies from the government in the form of raw materials, etc., which may cause a business to rely on the subsidies to the extent that the business suffers when the subsidies run out. Instead of waiting to react to the negative impacts of environmental factors, business managers can choose to be proactive and have contingency plans for unexpected environmental factors. To deal with such situations, managers can set up rainy day funds that they can use during emergencies.
Internal environment factors have a direct impact on the individual organization. The organization has some control over internal factors. It can alter or modify such factors, as the manager's deem appropriate. Here are a few of the internal environmental factors of business that can be changed when needed:
The external factors in a business environment have an indirect influence on the organization. The factors are uncontrollable by the organization and can be hard to predict. Here are a few examples of external environmental factors of business:
Let's review. Environmental factors, internal and external, can affect the organization in its day-to-day operations. General environmental factors have an impact on an entire industry and affect individual organizations equally. Environmental factors can be both internal and external to an organization. Some internal factors of a business include its value system, mission and objectives, and internal relationships. External factors of a business include competitors, economic factors and technological factors. Management needs to carefully plan and take into account these factors when doing business.
The marketing environment is made up of the internal and external environment of the business. While the internal environment can be controlled, the business has less or no control over the external environment.
The internal environment of the business includes all the forces and factors inside the organisation which affect its marketing operations. These components can be grouped under the Five Ms of the business, which are:
The internal environment is under the control of the marketer and can be changed with the changing external environment. Nevertheless, the internal marketing environment is as important for the business as the external marketing environment. This environment includes the sales department, the marketing department, the manufacturing unit, the human resource department, etc. 2ff7e9595c