Describe the business today?

-Moderen business is dynamic. If is any word that can best describe today's business, it is change. This
change makes the companies spend substantially on research and development (R&D) to survive in the
market. Mass production and mass marketing are the norms followed by business enterprises.

Importance of studying business environment?

°Development of broad strategies and long-term policies of thr firm.

°Development of action plans to deal with technological advancements.

°To foresee the impact of socio-ecomic changes at the national and international levels on the firms
stability.

°Analysis of competitor's strategies and formulation of effective counter-measures.

°To keep oneself dynamic.

Importance

1.Safeguard Against Increasing Competition

-every businessman has to compete with the products, techniques, costs, markets, distribution
chains, production, and sales methods of its competitors.

2.Successful Operation of tge Busines

-The rise fall in the effeciency, physiological capacities, and skills of the businessman or workers on the
employees are related with internal environment.If the environment of the business institution is good,
the effeciency and skills of all will be high.

3.Formulation of Action Plans of Business

-Action plans of business may be easily formulated perceiving the knowledgeable business
environment.An effective assessment of changing curcumstances is done to give practical shape to plans.

4.Sound and Effective Dicisions

-Those which are in accordance with the ecpectations and needs of the environment.

5.Facing the Challenges

-The business have been posted for the businesd in the dynamic environment of the present days.

6.Enhancing Opportunities for Profits

-The business are enhanced by assessing the environment.

7.Effective Management System

-Planning and control is the essence of the effective managament system.Performed by making a
suitable evolution of environmental limitations, forces,pressures,effects,and events of work.

8.Dynamic Behaviour

-Caused by the business environment, the reason being that the business studies internal and
external factors, social and political events.

9.Long-Term Planning

-A business institution may plan for the long-term by study and analysis of business environment.

10.Knowledge of Good and Bad effects of Organisation

-A business organization which carries out its activities has good and bad effects both.

11.Evolution of Exiting Objectives and Plans

-It is a common phenomenon visible in the business scenario that planning starts when any
enterprise gets the failure in setting with the factors of the changeable environment, after studying the
circumstances in various forms.

12.Alterness Towards Threats,Crisis, and Problems

-The business environment works openly and independently, as a result, new threats, crisis, problems,
and challenges always crop in for the new business.

13.Knowledge of Uncertainies,Risk,Changes in Profits and Fluctuations

-Following knowledge is gained from the business environment

14.Survival Capacity of Business Institution

-Should have knowledge about various components of the environment and should also establish
coordination among them, so as to maintain survival capacity.

15.Knowledge of Interdependence of Factors

-Factors of the business are economic,social,cultural,political,technical,statutory and moral factors

mutually affect each other.

16.Utilization of Resources

-The enterpreneurial environment makes the best utilization of natural and human resources and
also motivate the people for it.

17.Industrial Development
 -Particular place and area depends upon the business environment.

18.Development of means of Transportation and Communication

-Developed with a favorable business environment

19.Innovations

-Makes easy to adopt new products, new designs and new techniques of production and the
business organization may maintain its leadership in the market by such innovations.

20.Expansion and Growth

-Creates opportunities for development, changes, diversities and economic progress.

What is Local Environment?

-A peer-reviewed academic journal covering the fields of urban planning, environment policy, and
sustainable development with a focus on the intersection on social justice and sustainability in the local
environment.

Example:

air, water, and soil pollution

Soil erosion or loss of soil fertility due to industrial agriculture

International Environment?

-is a multidimensional including the political risks, cultural differences, exchange risks, legal & taxation
issues.

-comprises the political, economic, regulatory, tax, social & cultural,& technological environments.

Differences of Local & International Environment?

-Local Environment refers to academic journal, planning, environmental policy, sustainable

development with the intersection on social justice and it is about sustainability, while International
Environment is refers to political risks, cultural, exchange risks, legal & others issues.

Similarities ?
 -they are they same business and environments.

Types of Business Environment?

1.Internal Environment

-is a physical assets, human, financial and marketing resources, technological supports, the
management etc.

2.External Environment

-is relatively watched compared to the internal business environment.It is composed of various
organizations institutions and other forces which operate beyond the control of the of organization.

What are the business Environment?

- Goals are used to help a business grow and achieve its objectives. They can be used to foster
teamwork and help the business describe what it wants to accomplish. Setting goals is an important part
of any business plan.

Business Goals

-it is part of planning process, company expects to accomplish over a specific period of time. Businesd
usually outline their goals and objectives to their businesd plans. Goals might pertain to the company as
a whole, departments, employees, custumers, or any other area of the business.

1.Profit-making profit is the primary goal of any business enterprise.

2.Growth-business should grow in all directions over a period of time.

3.Power-business houses have vast resources at its command. These resources confer enormous
economic and political power.

Importance of Business Goals

-Business should not setting goals because there is absolutely no downside to the process. Goals give a
business direction and help measure results. There are four detailed and important reasons why a
businesa should have goals.

1.Measure success
 -good organizations should always be trying to improve, grow, and become more efficient.

2.Leadership Cohesion

-Clearly understands what the business is trying to accomplish, it provides greater rationale for the
decisions management might make regarding hiring, aquisitions, incentives, sales, programs etc.

3.Knowledge is Power

- If an employee knows and understands the goals, it becomes easier for him or her to make daily
decisions based on the long- and short-term goals that were established.

4.Reassess Goals

-When goals are set, they can be monitured on a regular basis to verify the businesd is headed in the
right direction. If the business is not achieving or moving towards accomplishing its goals, then changes
or adjustments need to be made.

Steps in Environment Analysis?

-Is an on going proccess and follows a holistic approach, that continously scans the forces effecting the
business environment and covers 360 degrees of the horizon, rather than a specificsegment.

1.Monitoring

-it involves tracking the environment trends, sequences of events, or steams of activities. It
frequently involves following signals or indicators unearthed during invironmental scanning.

2.Scanning

-Implies the process of critically examining the factors that highly influence the business, as all the
factors identified in the previous step effects the entity with the same intensity.

3.Assessment

-The frame of references moves from understanding the environment the focus of
scanning,monitoring and forecasting to identify what the understanding means for the organization.

4.Forecasting

-After identification, examination and analysis, lastly the impact of the variables is to be forecasted.

Sources :
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