Business Environment

(An Overview)

Your Business Environment

You Your Job Your Department Your Organization Your Nation The World around you - As a Manager You do not function in a Vacuum - You exist and operate within, and not without an environment.

As a Manager
When you think or take decisions, you cannot neglect the limitations of your environment You would always take decisions after contemplating the reaction to your action by the environment where you are placed.

The survival and success of a firm, depends on two types/sets of factors

The internal factors-the internal environment The external factors-the external environment

A Meaningful Organization has certain

Mission Objectives Goals
 

Has to have a strategy to achieve them The formulation of strategy is some times defined as Establishing a proper Firm-Environment Fit based on the assessment of the external environment and the internal environment

Internal Environment

Business Decisions

External Environment

Determine
Internal Environment- Strength/weaknesses External Environment- Opportunities/ Threats S- Strengths W- Weaknesses O- Opportunities T- Threats

Internal Environment Value System Mission and objectives Management Structure and Nature Internal Power Relationship Human Resources Company Image and Brand Equity Physical Assets and facilities R & D and Technological Capabilities Marketing Resources Financial Factors.

Mis Factors (Internal Environment)

Internal Environment
Value System
Value System of the founders/ those at the helms of affairs has important bearing on the Choice of business The mission Objectives Policies Practises eg. Tata, EID Parry Group merger with Murugappa

Mission and Objectives

The business domain of the Co., Priorities, Direction of Development, Business Philosophy Business Policy etc. - Are guided by the mission and objectives of the Organization. eg. Ranboxy, Arvind Mills, Raymonds.

Management Structure and Nature

Composition of the Board of Directors Profesionalisation of Management these effect/ Influence Business Decisions Some take Decisions fast some take time Depends on the structure Share holding Pattern