Presentation On Business Environment 4a5h2u

PRESENTATION ON BUSINESS ENVIRONMENT SUBMITTED TO: MRS. MEENU SONI

COMMERCE FACULTY

SUBMITTED BY: SHIVANI M.COM. I 5619

CONTENTS 1.

2. 3. 4. 5. 6.

INTRODUCTION MEANING AND DEFINITION CLASSIFICATION OF BUSINESS ENVIRONMENT ENVIRONMENTAL SCANNING TECHNIQUES OF ENVIRONMENTAL FORECASTING SWOT

MEANING AND DEFINITION BUSINESS means human activities which are performed with the objectives of earning profits. ENVIRONMENT pose threats to a firm or provides immense opportunities for market exploitation. BUSINESS ENVIRONMENT refers to those aspects of the surroundings of business firm which have influence on the functioning of business.

“Business environment is the climate or set of conditions- economic, social, political or institutional in which business operations are conducted.” -Arthur M. Weimer

“Business environment is the total of all things external to business firms and industries which affect their organization and operations.” -Bayard O.Wheeler

COMPONENTS OF BUSINESS ENVIRONMENT INTERNAL ENVIRONMENT 1 Financial Resources 2 Physical and human resources 3 Objectives of business 4 Managerial policies 5 Morale and commitment of human resources 6 Work environment 7 Brand and corporate image 8 Labour management relationship 9 Technological and R&D capabilities 10 Promoters’ vision

COMPONENTS OF BUSINESS ENVIRONMENT

EXTERNAL ENVIRONMENT

Micro/Operating a) b) c) d) e)

Suppliers Customers Market Intermediaries Competitors Public

Macro /General a) Economic b) Political c) Socio-cultural d) Technological e) Natural f) Demographic g) International/Global

MICRO/OPERATING ENVIRONMENT 1 SUPPLIERS 2 CUSTOMER (Retail, Industrial, Foreign, Govt.) 3 MARKET INTERMEDIARIES (Middleman, Marketing agencies, Financial intermediaries, Physical intermediaries) 4 COMPETITORS 5 PUBLIC (Media Public, Local Public)

MACRO/GENERAL ENVIRONMENT 1 ECONOMIC (Eco. Conditions, policies, system) 2 POLITICAL (Political ideology, Stability, Centre-state relationship, Defence and military policies) 3 SOCIO-CULTURAL 4 TECHNOLOGY 5 NATURAL 6 DEMOGRAPHIC 7 INTERNATIONAL/GLOBAL

ENVIRONMENTAL SCANNING Environmental scanning is the process by which organizations monitor their relevant environment to identify opportunities available and threats affecting their business. It is the process by which managers monitor the economic ,governmental, technological, legal, social and cultural factors to determine the threats to enterprise and the opportunities available to the organization.

TECHNIQUES OF ENVIRONMENTAL SCANNING 1 2 3 4 5 6 7 8 9

HISTORIC ANALOGY METHOD ECONOMETRIC TECHNIQUE JUDGEMENT MODELS SURVEY METHOD SCENARIO METHOD DELPHI METHOD BRAIN STORMING BUSINESS BAROMETER METHOD INPUT OUTPUT ANALYSIS

SWOT SWOT analysis may be very helpful to the managers in making policy decisions. M. Adhikary has explained SWOT analysis as,

”Opportunity (O) and Threat (T) are external to the firm whose internal Strength (S) and Weakness (W) are decisive factors whether or not environment can be properly managed or not. With strength, a firm can seize the opportunity and capitalize on it, and because of its weakness, it becomes the victim of threat in the environment.”

BIBLOGRAPHY 1. 2. 3. 4.

Business Environment- Dr. Alok Goyal and Mridula Goyal Business Environment- Rosy Joshi and Sangam Kapoor Essentials of business environmentK. Aswathappa Business Environment- P.K. Dhar

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