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…