Introduction to Business Environment
Unit Idreams.wmv_(360p).flv
Business Environment
• Business: Organized efforts of enterprises to supply goods and services to consumers for a profit
• Environment: all factors that impact business functions
• Business environment_(360p).flv
External Environment Factors: PEST-GN
• Political• Economic• Social-Cultural• Technological• Global• Natural
Internal Environment Factors
• Specialized competitive advantage of one company over other comes from:– Demand conditions-consumers– Factor Conditions-suppliers– Related and supporting industries– Firms strategy, structure and rivalry– New entrants
Internal and External BE
Internal Environment of
business
External Environment of
business
Business Environment
Characteristics of contemporary business
• Transition• Role of government• Competition• Opportunities• Globalization• Technology• Management as a science
Vision, Mission and Objectives
• Vision: A broad explanation of why firm exists and where it is trying to lead..
• Mission: Outlines the fundamental purpose of the organization..
• Vision becomes tangible as a mission statement..
• V: where do we go from here..• M: What is our business…
Knowing the environment
What is to be accepted and what rejected3 tasks: ur environment.flv1. Enacted Environment: carve your own
environment2. Domain Consensus: has to be reached and
recognized by all stakeholder3. Task environment: Specific range of products
offered. Strategies and Technologies used to counter competition
Environment Analysis
• Scanning: general survey of environmental changes if any
• Monitoring: Tracking the environment trends: past and current
• Forecasting: Future orientation• Assessment: of above 3. – Moving from environment analysis to– What it means for the organization– And what needs to be done now onnn…
We discussed-
• Business Environment• External and internal environment• Steps in knowing the environment• Steps in Environment analysis
• Task for U: Simulation..• Analyze importance of knowing business
environment for a business man• Find impact of BE on any company of your choice…