Introduction to Business
Environment
Unit I
dreams.wmv_(360p).flv
Business Environment
• Business: Organized efforts of enterprises to
supply goods and services to consumers for a
profit
• Environment: all factors that impact business
functions
• Business environment_(360p).flv
External Environment Factors: PESTGN
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Political
Economic
Social-Cultural
Technological
Global
Natural
Internal Environment Factors
• Specialized competitive advantage of one
company over other comes from:
– Demand conditions-consumers
– Factor Conditions-suppliers
– Related and supporting industries
– Firms strategy, structure and rivalry
– New entrants
Internal and External BE
Internal
Environment
of business
Business
Environment
External
Environment
of business
Characteristics of contemporary
business
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Transition
Role of government
Competition
Opportunities
Globalization
Technology
Management as a science
Vision, Mission and Objectives
• Vision: A broad explanation of why firm exists
and where it is trying to lead..
• Mission: Outlines the fundamental purpose of
the organization..
• Vision becomes tangible as a mission statement..
• V: where do we go from here..
• M: What is our business…
Knowing the environment
What is to be accepted and what rejected
3 tasks: ur environment.flv
1. Enacted Environment: carve your own
environment
2. Domain Consensus: has to be reached and
recognized by all stakeholder
3. Task environment: Specific range of products
offered. Strategies and Technologies used to
counter competition
Environment Analysis
• Scanning: general survey of environmental
changes if any
• Monitoring: Tracking the environment trends:
past and current
• Forecasting: Future orientation
• Assessment: of above 3.
– Moving from environment analysis to
– What it means for the organization
– And what needs to be done now onnn…
We discussed•
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Business Environment
External and internal environment
Steps in knowing the environment
Steps in Environment analysis
• Task for U: Simulation..
• Analyze importance of knowing business
environment for a business man
• Find impact of BE on any company of your
choice…