BUSINESS

AND
BUSINESS ENVIRONMENT

Presented
By
Iman Rehan (HND Business)
 WHAT IS BUSINESS???

Business is the activity of providing good and services involving

financial, commercial and industrial aspect.
 ENVIRONMENT MEANS???

Environment refers to all of the external forces that directly influence the
functioning of business, such factors includes political, legal,
technological, economic, social and physical environment.
 HE
YE Y! YO Glueck and Jauch
MA S, YO U
WO RK M U “ The environment includes
RD Y
S. factors outside the firm which
can lead to opportunities for or
threat to the firm. Although
there are many factors, the most
important of the sectors are
socio-economic, technological,
supplier, competitors and
Government”.
(1988) New York
McGraw-Hill Book Company
5th edition
Journal Name- Health
BUSI NESS ENVIRONMENT CONSIST OF 3 ELEMENTS
NAMI NG ,MICRO, MARKET AND MACRO.

External/Macro environmental factors are elements that are outside of

company’s internal environment and they could impact it’s operation.
Such force could either create challenges for business or allow them to
flourish.
The consistent changes bought by indirect surroundings are way beyond
the control of an organization, therefore executives and managers would
track these changes minimize it’s negative externalities.
 8 TYPES OF INDIRECT
ENVIRONMENTAL FACTORS
POLITICAL
• Continuous Changes in Government
• When country’s GDP or GNI,
policies with every new political party
coming into power and getting rid of
previous ones. With this inconsistency
in political environment of country
businesses and companies have to pay
attention towards legislations and
upcoming bills that could adversely
affect its working process.
Following are the policies:
Intellect property rights
Import restrictions
Competion regulations
Tariff and taxations.
ECONOMICAL
experiences a downturn than
unemployment rate would increase
drastically. Firs have to work hard
in order to retain workers
alongside, in case of retailers
prices need to be reduced to
amplify the sales and maintain
profitability.
Tax rates
Unemployment
Interest rates
Inflation.
 SOCIAL
ng the company that how it should operate its business and behavior of customers. Some of the main areas that fall unde
When people live together in a society, then their
social status and personal choices would influence
their purchase decision in terms of what and where
they should buy. While developing the
product/service, companies keep in mind various
social factors because various social issues, events,
and movements impact their decision.

Starbucks it is a global company with strong

brand recognition, premium product quality and a
cozy environment .

Dunkin' Donuts and McCafé

 COMPETITIVE
C O M PA N I E S C O U L D A M P L I F Y T H E I R M A R K E T S H A R E A N D
P R O F I TA B I L I T Y I F T H E Y K E E P O N T R A C K I N G T H E M A R K E T T R E N D S
A N D C O M P E T I TO R S   I T W O U L D A L LO W T H E M TO R E C O G N I Z E T H E Starbucks it is a
C H A L L E N G E S A N D F I N D WAY S TO D E A L W I T H T H E M I N O R D E R TO global company with
D E A L W I T H LO S S . strong brand
recognition, premium
product quality and a
cosy environment .

E TH I C A L
D I F F E R E N T P E O P L E H AV E D I F F E R E N T C O N C E P T S O F M O R A L I T Y
AND ETHICS, AND IT HAS BECOME CHALLENGING FOR
C O M PA N I E S TO M A I N TA I N A B A L A N C E B E T W E E N S TA F F
E X P E C TAT I O N A N D T H E I R P E R S O N A L L I V E S . T H E M A N A G E R S
SHOULD ADDRESS WORKPLACE ETHICAL ISSUES LIKE
H A R A S S M E N T A N D S H A R I N G T H E C O M PA N Y ’ S C O N F I D E N T I A L
I N F O R M AT I O N A N D TA K E D I S C I P L I N A RY A C T I O N S A G A I N S T
THEM.
 Technological

echnology allows a company to

save time and labour costs while
achieving more efficiency, which,
in the long run, can result in a
competitive advantage.

Three key areas of technology in

business are automation, e-
commerce, and digital media.
Tafawuq Facilities Management has deployed a
self-driving robot cleaning solution called
LeoMop, which is equipped with active artificial
intelligence (AI) and can clean for an average of
17 hours per day
 LET’S HAVE A QUICK ACTIVITY

• ALL YOU JAVE TO DO IS FIGURE OUT WHICH EXAMPLE IS BEST

SUITABLE FOR EACH PARTICULAR TYPE OF EXTERNAL FACTORS.

1. Minimum wage
(A) Competitive factor. (B) Political Factor

2. Level of innovation
(B) Technological factor. (B) Environmental factor.