Business environment and their factors

these slides will help you in knowing that how different factors affect the business environment what is business environment and all. this will help you to enhance your knowledge more. and it describes all the factors clearly and in a very simple language

1. SUBMITTED TO: SUBMITTED BY: Mr. GAURAV SHREEKANT MEHUL CHOPRA(24) GOURAV GUPTA (18) AMITANSHU GUPTA(30) NISHKARSH KAUSHIK (38) SAKSHAM AGARWAL (51) AMITY SCHOOL OF BUSINESS

2. Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. INTRODUCTION

3. Business Environment Business Environment is a direct relationship between successful management and the influence and impact of environmental change .

4. External business environment: External Business environment is a set of political, economic, social and technological (PEST) forces that are largely outside the control and influence of a business, and that can potentially have both a positive and a negative impact on the business.

5. Factors influencing t he business environment : Technological innovation Globalization Growth of poverty Collapse of emerging markets Shift from manufacturing jobs to service jobs New methods of manufacturing

6. Internal Business Environment Internal Business Environment is the set of elements or forces which affects a organization's or firm’s behaviour. Examples are like personnel, finance, marketing, production, operational research and so on.

7. MICRO ENVIRONMENT Micro environment is the environment that an organization can influence. It may not be able to Correct all flaws in the microenvironment, but it has a much better control over the macro environment.

8. Factors Influencing Micro –Environment Consumers – needs , purchasing power and behavior Suppliers Market intermediaries Competitors

9. Micro environment of business . Suppliers Supply raw materials and other components (Inputs) Importance Reliable supply – continuous supply for smooth functioning

10. CUSTOMERS Different categories of customers Industrial customers Wholesale customers Retail customers Government customers Foreign customers

11. Market intermediaries Middlemen. Physical distribution Firms: (warehouses and transport firms) Marketing service agencies (Advertising agencies market research firms, media firms, consulting firms) Financial intermediaries

12. 4. Competitors: The Threat of entry of new firms The Power of Buyers The Power of Suppliers The Power of Substitutes The Intensity of Rivalry among existing firms

13. MACRO ENVIRONMENT Macro Environment are major external and uncontrollable factors that influence an organization's decision making, and affect its performance and strategies.

14. These factors are Sociological Factors Political Factors Legal Factors Educational Factors Technological Factors Economical Factors Natural Factors Historical Factors

15. SOCIOLOGICAL FACTORS It concerns with society as a whole; it covers health, media, education, minorities, women, organized labour , legal system and demographics. The biggest challenge to firms is the society's changing demands. POLITICAL FACTORS Political environment gives shape to business. Political stability, Government administration, Philosophy of the political parties are some of political factor which affects the business environment

16. LEGAL FACTORS Legal Environment has a permanent and lasting impact in shaping business . Labour law act, Industrial dispute act, Minimum wages act, Law of contract, Import & Export control act and tax law act are few legal factors. EDUCATIONAL FACTORS Educational cum cultural environment affects business activities and managerial skills.These factors include literacy, attitude toward training and skill required for a businesslike specialized, vocational and technical training

17. TECHNOLOGICAL FACTORS Technology is about application of tools, methods and techniques to improve production and processes. Technology is life for growth and competitiveness of Business . ECONOMICAL ENVIRONMENT Economic environment conditions such as business cycle, unemployment, Inflation,monitory policies, Industrial policies, trade policies etc also affects the businessenvironment .

18. NATURAL & ECOLOGICAL FACTORS Use of modern technology sometimes involves huge social cost in term of Deterioration of environmental pollution and ecological balance. So business environment should also consider about natural resources, weather & climatic conditions, health hazards etc. HISTORICAL FACTORS Business Environment is also affected by historical factors. Business environment in anumber of newly independent countries has been determined by their past colonial status.

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