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 11
Chapter

BUSINESS ENVIRONMENT
ASSESSMENT AND NETWORKING
IN ENTREPRENEURSHIP
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 Business Environment Assessment and
Networking In Entrepreneurship

❑ AT THE END OF THIS CHAPTER, YOU WILL BE ABLE TO:

– Define business environment assessment.
– State the importance of assessing the business environment.
– Describe the process of business environment analysis.
– Discuss the components of the external business environment.
– Differentiate between the macro and micro components of the external
business environment.
– Discuss the components of the internal environment.
– Define networking.
– Describe the benefits of having a good network.
– Explain the types of networking.
– Describe the techniques to build a business network.
– Discuss the management of a business network.
– Explain the strategies for effective networking.
– Discuss the barriers to networking.

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 Business Environment
Assessment

❑ Refers to a set of factors or conditions that exists

in a location in which an organization operates
that directly influences the functioning of the
organization.

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 The Importance of Assessing
the Business Environment

❑ Detecting opportunities
❑ Foreseeing threats and warning signals
❑ Managing with rapid changes
❑ Improving performance

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 The Process of Business
Environment Analysis

❑ Scanning
❑ Monitoring
❑ Forecasting
❑ Making an assessment

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 The Macro Components of the
External Business Environment

P POLITICAL-LEGAL
E ECONOMIC
S SOCIO-CULTURAL
T TECHNOLOGICAL

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 The Micro Components of the
External Business Environment
Competitive rivalry among companies in the industry

– Bargaining power of suppliers

– Bargaining power of buyers

– Threat of new entrants/ the likelihood of new entry

– Threat of substitute products or services

Porter Model (1980)

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 Components of Internal Environment

❑ Structure
❑ Culture
❑ Resources

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 Networking

❑ Networking is the process of starting a mutually

beneficial relationship with other people in an
environment where they have the opportunity to
exchange information, develop professional or
social contacts, or other new resources.

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 Benefits of Good Networking

❑ Expands influence and valuable contacts.

❑ Source of information and opportunities.
❑ Source of creativity and innovation.
❑ Develops new skills and practices.
❑ Mentoring opportunities and supports collaboration.
❑ Boosts one’s reputation and builds trust.

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 Types of Networking

❑ Formal business networking

❑ Informal business networking
❑ Referral business networking
❑ Industrial business networking
❑ Online business networking

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 Techniques of Business Network

❑ Always be prepared.
❑ Create two-way communication.
❑ Follow up.
❑ Make the occasional personal gesture.
❑ Help others achieve success.
❑ Extend out of the comfort zone.
❑ Ask for opportunities.
❑ Deal with rejection.
❑ Always say Thank You.
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 Management of Business Network

❑ Stage 1: Planning the network

❑ Stage 2: Building the network
❑ Stage 3: Nurturing the network

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 Strategies for Effective Networking

❑ Choose the right networking group or event.

❑ Focus on quality, not quantity.
❑ Make a positive first impression.
❑ Explain clearly and briefly about the business.
❑ Follow up after the event.

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 Barriers to Networking

❑ Lack of knowledge
❑ Lack of preparation and research
❑ Bad manners
❑ Making empty promises

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