Business Environment

Lecture Notes for Business and Management Dr. Fahmy Radhi, MBA

Business Environment

Business Environment is individual and organization that exist outside the business and have influence direct and indirect to the business.

Business Environment Elements

Supplier supply materials, machine, service and information used to produce its products and services Financial institution the capital resources that available for the firm Customers targets for the firm to market its products and services Competitor - all of the entities that compete with the firm in marketplace

Business Environment Elements

Stockholders/owners persons who are invest money in the firm and represent the high level of management labor union organization of skilled and unskilled workers The community people in the area where the firm perform its operation Government federal, state and local level government that provides not only constraints in the form of law, regulation, and taxes taking but also provides assistance in form of purchases, information and funds.

Environmental management
Environmental management how to manage the environmental elements by executing strategies that alter uncertainly environment to a certain extent Environmental Management Strategy: Independent Strategy carry out its own resources to make better its environment Cooperative Strategy involve working with other environmental element for the same purpose Strategic Maneuvering try to alter its environment

Environmental management
Basic Strategy Independent Strategy Specific Strategy Competitive aggression Legal Action Political Action Example Product differentiation Aggressive Pricing and Advertising Suits brought against competitors Lobbying Consumer representatives Industry Association Entry in specific market Wide product mix Merger with competitors

Cooperative Strategy

Co-optation Coalition

Strategic Domain Selection Maneuver Diversification ing Merger and Acquisition

Social Responsibility
Social Responsibility the awareness that business activities have an impact on its environment so it should try to balance its commitment in its environment

Social Responsibility

Responsibility to consumers, such as:

the the the the

right right right right

to to to to

safety, be informed choose, be heard

Responsibility to employees, such as:

The right to safety The right to equality in the workplace, The right to improve its capability

Social Responsibility

Responsibility to investors, such as:

The right to be proper management of funds The right to access information

Preventing to water and air pollution, Safe to the land and Forest natural resources

Responsibility to the environment, such as

Social responsibility, such as

Community support Social audit

Business Challenges

Challenges in Challenges in Environment Challenges in Environment Challenges in Environment Challenges in Environment

the Economic Environment the Competitive the Social and Culture the Political-Legal

the Technological

Challenges in the Economic Environment

Macroeconomics Microeconomics The Forces of Supply and Demand The Business Cycle State Budget International Trade

Challenges in the Competitive Environment

Types

of Market Structure Global Competition Dealing with Competitors

Challenges in the Social and Culture Environment

Changing

Population Cultural Values Social Responsibility Consumerism and Ecology Business Ethics

Challenges in the Political-Legal Environment

Government Role Business and Politics Law enforcement

Challenges in the Technological Environment

Technology

Development Applying Technology Technology Transfer

SEKIAN