Business Environment and Its Impact on Enterprises
Discover the meaning of business environment and how it influences business performance. Learn about environment scanning, key features, importance, and various aspects such as economic, social, political, and legal environments. Gain insights into the forces and factors shaping the external landscape of businesses.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
You are allowed to download the files provided on this website for personal or commercial use, subject to the condition that they are used lawfully. All files are the property of their respective owners.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author.
E N D
Presentation Transcript
MEANING Business Environment refers to forces, factors, individuals and institutions which are outside the control of business enterprise but these may effect its performance. In simple words, its is the surroundings in which business exists.
Environment Scanning It refers to complete awareness and understanding of business environment. With environment scanning Business enterprises can anticipate the effect of environment forces and factors on their enterprises.
Features Totality of external forces 1. 2. Specific and general forces 3. Inter-relatedness 4. Dynamic nature 5. Uncertain 6. Complexity 7. Relativity
Importance Enables the firm to identify opportunities and getting first mover advantage. 2. Helps the firm to identify the threats and give early warning signals. 3. Helpful in tapping and assembling resources 4. Copes up with rapid changes 5. Assist in planning and policy formulation 6. Improves performance 1.
Economic 1. 2. Social 3. Legal 4. Technological 5. Political
Economic Environment Change in tax rates 1. 2. Interest Rates 3. Inflation 4. Income/Saving/investment etc
Social Environment : Change in taste, fashion Change in social trend 3. Customs and traditions 4. Values followed 5. Celebrations and festivals etc 1. 2.
Political Environment: Attitude of elected Govt. representatives 1. 2. Agenda of political parties 3. Ideology and practices of ruling party 4. Relation with other countries etc
Legal Environment: Any Act, statute, legislature 1. 2. Court judgment 3. Administrative orders issued by govt. authorities
Technological Environment: Change in method of production 1. 2. New machinery, new equipment 3. Scientific improvements and innovations 4. New techniques and methods of operating Business
Elements Liberalization 1. 2. Privatization 3. Globalization
Impact of changes in Economic Policy on Business Increasing Competition 1. 2. More demanding Customers 3. Rapidly changing technological environment 4. Necessity for change 5. Need for developing Human Resources Market Orientation 7. Loss of budgetary to Public Sector 8. Export a matter of Survival 6.
Managerial Response to Changes in Business Environment Diversification 1. 2. Joint Venture/Collaboration and consolidation of MNCs 3. Brand Building 4. Use of latest technology 5. Improved compensation level 6. Customer Focus
Feature A Tax administration measure 1. 2. Non tolerance of Tax Evasion 3. Channelizing saving into formal financial system 4. Creating less cash or digital Cash Lite Economy
