CHAPTER 4

Ventures Environment Assessment

By: MAIZURAMOHAMAD (DR)

AT THE END OF THIS CHAPTER YOU SHOULD BE
ABLE TO:

✓ Identify two components of ventures environment;

✓ Describe four elements of macro and micro-environment and six
elements of micro-environment;
✓ Explain three elements of organization’s internal environment;
✓ Explain a business opportunity;
✓ Evaluate a business opportunity.
THE SCENARIO

• Environment offers a lot

of opportunity
• Entrepreneur need to
assess or validate the
environment to invest,
plan and venture further
in the business.
COMPONENTS OF VENTURES ENVIRONMENT
EXTERNAL - MACRO

EXTERNAL - MICRO

INTERNAL

STRUCTURE
RESOURCES
CULTURE

STAKEHOLDERS
 EXTERNAL - MACRO
• The political influence of the government affects
business to a large scale in a positive or negative way
• Important to take the political and legal nature into
POLITICS & LEGISLATION consideration as it will affect the business operation

ECONOMIC
• Economy is one of the most determining factors to
the success of the company
2 4 TECHNOLOGY
• Factors such as the fluctuation of interest rate,
• The use of latest technology also gives the
economic crisis, and so on directly and strongly
organization a competitive advantage over the
affects the consumption of buyers, and
competition due to which it gets a better market
consequently, the profits of businesses.
share.
• There are 7 factors that have direct impacts on
business firm.
✓Tax rate
✓Exchange rate
✓Inflation • Multinational firms which bring the culture from their
✓Labor
✓Demand/supply
3 SOCIAL own country in the countries of businesses.
• The organizations need to understand the cultural
✓Wages aspects and social aspects of the country that the
✓Recession business is being done in.
 CASE STUDY

POLITICS & LEGISLATION

ECONOMIC
2 4 TECHNOLOGY

https://pestleanalysis.com/pestle-analysis-of-ikea/ 3 SOCIAL
https://en.wikipedia.org/wiki/List_of_countries_with_IKEA_stores
EXTERNAL - MICRO

MICRO
ENVIRONMENT
INTERNAL ENVIRONMENT

BUSINESS
ORGANIZATION
 OPPORTUNITY

Opportunity is defined as a situation that enables an entrepreneur

to offer marketable products or services to interested buyers or
end users
SOURCE OF OPPORTUNITY
NEW OPPORTUNITY: E-COMMERCE
OPPORTUNITY EVALUATION
OPPORTUNITY AND NEW FIRMS
QUESTIONS??
o To discuss in our FORUM

o Ask as many questions as you want about the

topic

o Always get ready with your notes and material

during online class
See you in next online
class…