Environment and Market power point presentation.pptx

micro and macro

1. ENVIRONMENT AND MARKET

2. ENVIRONMENT is all the components that affect a business. 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.

3. MARKET is a platform, system or forum of exchange that connects two sides with complementary needs such as buyers and sellers.

4. ENVIRONMENT is a set of external and internal in which a business operates.

5. ENVIRONMENT Basis for Comparison Micro Environment Macro Environment Meaning Micro environment is defined as the nearby environment, under which the firm operates. Macro environment refers to the general environment, that can affect the working of all business enterprises. Elements COSMIC, i.e. Competitors, Organization itself, Suppliers, Market, Intermediaries and Customers. PESTLE, i.e. Political, Economic, Socio-cultural, Technological, Legal and Environmental.

6. ENVIRONMENT MICRO The microenvironment is a collection of all the forces that are close to the firm. These forces are very particular for the said business only. They can influence the performance and day to day operations of the company, but for the short term only. Its elements include suppliers, competitors, marketing intermediaries, customers and the firm itself.

7. ENVIRONMENT Suppliers are the ones who provide inputs to the business like raw material, equipment and so on. Competitors are the rivals, which compete with the firm in the market and resources as well. Marketing intermediaries may include wholesalers, distributors, and retailers that make a link between the firm and the customers.

8. ENVIRONMENT Customers / Consumers are the ones who purchase the goods for their own consumption. They are considered as the king of business. The firm itself is an aggregate of a number of elements like owners like shareholders or investors, employees and the board of directors.

9. ENVIRONMENT MACRO The general environment within the economy that influences the working, performance, decision making and strategy of all business groups at the same time is known as Macro Environment. It is dynamic in nature. Therefore it keeps on changing.

10. ENVIRONMENT MACRO ENVIRONMENT Political Factors From the political climate of the business’ geography to the international relations it holds, every aspect of politics affects a business. Many countries have laws that facilitate some businesses, others have laws that restrict businesses. The condition of local politics and its relation to other countries highly affect the business condition.

11. ENVIRONMENT Business Environment Factors: Economic Factors The current economic condition in most countries is highly volatile. And this is relevant to every business large and small. However, the presence of the open market has been highly beneficial towards businesses as well. Since the global economy is volatile most big business has to be careful of its impact at all times.

12. ENVIRONMENT Business Environment Factors: Socio-cultural Factors Every society has its unique requirements and choices. These shape regional business personas and are one of the primary external factors for all businesses worldwide. For example, let’s see the current trend towards a western lifestyle throughout the world. This has led to a rise in demand for western food and fashion.

13. ENVIRONMENT Business Environment Factors: Technological Factors Technology is one of the primary drivers in today’s world. Businesses that are unable to match up to the current technological progress are having a hard time establishing their existence. And the businesses that are using tech to their advantage are moving ahead of their competitors. IT itself has become a leading business in the past few decades.

14. ENVIRONMENT Business Environment Factors: Legal Factors There are laws for businesses in every country in the world and every business has to abide by these laws. So, regulations are a primary factor that every business needs to consider in its external environment. But there are also regulations that help businesses thrive.

15. ENVIRONMENT Business Environment Factors: Environmental Factors The world is currently facing an environmental crisis. As a result, all businesses are expected to adhere to a process that harms the environment in the least way possible. Also, certain environmental conditions in areas affect businesses. For instance, a cold season might bring down the agricultural business, but it will boost tourism.

16. ENVIRONMENT Business Environment Factors: Internal Environment Factors The forces present within a business organization define its characteristics. These include the work culture, the level of machinery used, the management process, etc. Here are some of the primary internal factors that affect the business environment.

17. ENVIRONMENT Business Environment Factors: Value Framework This is basically the business’ functional process and how the value in a business is judged. The value framework of a business defines the manner in which its employees will perform their roles. And, how their work culture will be regulated.

18. ENVIRONMENT Business Environment Factors: Business Path Every company has a reason to exist and a purpose to serve. These two factors along with how the business sees itself in the future constitute the business path. These define the changes that will be enforced into the business framework.

19. ENVIRONMENT Business Environment Factors: Structure The hierarchical or non-hierarchical structure of a business that defines each employee’s and management’s role is one of the central aspects of the internal business environment. There are various business structures such as matrix, bureaucratic, functional, etc.

20. ENVIRONMENT Business Environment Factors: Organizational Culture Although undefinable in exact terms, every business has a unique culture that it adheres to. This includes the treatment of employees, resources, clients, etc.

21. ENVIRONMENT Business Environment Factors: Human Resources HR is a rather new concept that has flooded the world of business. With the size of businesses growing every day, the management of employees at a micro-level is performed by human resources. Thus, it plays an important role in defining the business environment. Physical Resources Every business runs on resources, and how it manages these resources is highly impactful towards its internal environment.

22. ENVIRONMENT Business Environment Factors: Technology The modern tech landscape continuously defines a business environment both from the outside and from the inside. From the inside it depends on the tech being used by business and from the outside, it depends on the tech being used by its competitors.

23. MARKET A place where different goods and services are bought and sold. An economic system where buyers and sellers engage and exchange goods and services at certain prices. Activities a company undertakes to promote the buying or selling of its products or services. An arrangement where buyers and sellers come in direct or indirect contact to sell/buy goods and services. Specifically-built places where goods are sold.

24. MARKET Examples of business markets: Business-to-consumer market As business-to-consumer markets operate by selling goods and services directly to customers, most companies that use one involve some form of retail. For example, clothing stores that advertise new fashions and garments that customers can purchase immediately in their stores can be classified as business-to-consumer companies. More examples include businesses like grocery stores, online retailers and cosmetics companies.

25. MARKET Business-to-business market A company in a business-to-business market sells their products and services to other business for reselling or reuse, which means they typically sell products that can benefit companies as a whole. One example of a business-to-business company is a business that sells materials to construction companies for construction projects, as the construction company purchases its materials from another business and uses them to create new structures or make repairs. Additional examples include businesses that sell furniture for office spaces or advertise accounting services for companies or organizations.

26. MARKET Industrial market Because companies in industrial markets focus on selling products for industrial use, they can operate in several fields. Because of this, a company in an industrial market is likely an expert in their specific field and can provide specialized products for certain purposes. For example, companies that sell steel, glass, wood, or other raw materials offer their products for other businesses to use for manufacturing their own new products . Other industrial market companies might include businesses that sell machinery or vehicles for other companies to use.

27. MARKET Services market A company in a services market advertises and sells services to businesses and consumers, which means there are many examples to consider. One example of a business-to-business company in a services market might be companies that install cable or internet services in office spaces. Some companies in a services market might also work in a business-to-consumer market, such as plumbers, electricians, or hair stylists who offer services to both organizations and individual customers.

28. WHAT IS A BUSINESS PLAN?

29. BUSINESS PLAN A business plan is a roadmap for your business. It outlines your goals, strategies, and how you plan to achieve them. It’s a living document that you can update as your business grows and changes.

30. PURPOSES OF A BUSINESS PLAN Attract investors and lenders: If you’re seeking funding for your business , a business plan is a must-have. Investors and lenders want to see that you have a clear plan for how you’ll use their money to grow your business and generate revenue.

31. PURPOSES OF A BUSINESS PLAN Get organized and stay on track: Writing a business plan forces you to think through all aspects of your business, from your target market to your marketing strategy. This can help you identify any potential challenges and opportunities early on, so you can develop a plan to address them.

32. PURPOSES OF A BUSINESS PLAN Make better decisions: A business plan can help you make better decisions about your business by providing you with a framework to evaluate different options. For example, if you’re considering launching a new product, your business plan can help you assess the potential market demand, costs, and profitability.

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