Business_Environment_Presentation (1).pptx

This is a slide on the first Unit of Business Environment of MBS 2nd Semester. It consists of economic environment and its dimensions with the explanation on General Economy and Mixed Economy

1. Business Environment – Introduction Business environment can be defined as the combination of all the factors that influence a business . It refers as a set of all factors that can affects in its operation. These include both internal factors, like employees and resources, and external factors, like customers and markets. Each of these contributes to a company's working environment and can influence how the business functions . “The business environment refers to the institutions or forces that affect business performance .” - S. P Robbins

2. Business Environment – Introduction Business environment can be defined as the combination of all the factors that influence a business . It refers as a set of all factors that can affects in its operation. These include both internal factors, like employees and resources, and external factors, like customers and markets. Each of these contributes to a company's working environment and can influence how the business functions . “The business environment refers to the institutions or forces that affect business performance .” - S. P Robbins

3. Definition Business Environment = Combination of all factors influencing a business. Internal Factors: Employees, resources External Factors: Customers, markets

4. Characteristics of Business Environment Complex Dynamic Multi-faceted Far-reaching impact Aggregate of factors

5. Importance of Studying Business Environment Comprehensive strategy formulation Competitive analysis Adaptability Stability Dynamism Lobbying

6. Task Environment Definition: Factors in the immediate competitive situation of an organization. Examples: Competitors, customers, suppliers, labor supply

7. Components of Task Environment Customers Suppliers Distributors & special interest groups Financial institutions Media Competitors

8. General Environment Definition: Broad factors affecting all industries.

9. Components of General Environment Political Legal Economic Socio-cultural Technological Physical Global

10. Process of Environmental Analysis Scanning Monitoring Forecasting Assessing

11. Techniques of Environmental Analysis PESTLEG Analysis Scenario Planning Porter’s Five Forces Model

12. Porter’s Five Forces Competition in industry Potential of new entrants Power of suppliers Power of customers Threat of substitutes

13. Strong Competitive Position When Rivalry is not high High entry barriers No substitutes Weak buyer power Weak supplier power

14. Weak Competitive Position When Rivalry is high Low entry barriers Strong substitutes Strong buyer power Strong supplier power

15. Scenario Planning Definition: Plausible view of how the business environment might develop in the future. Process: 1. Identify critical factors 2. Identify future trends 3. Analyze past behavior 4. Forecast least favorable, likely, and most favorable scenarios 5. Develop scenarios

16. Importance of Environmental Analysis in Strategic Management Strategic planning Strategic implementation Strategic control Feedback

17. Recent Trends in Nepal’s Business Environment Increased private investment Growing urban population Educated customers Changing government role Rising economic agendas Modern technologies Global integration Changing socio-cultural values Shift to service industry Workforce diversity