BBS 3rd Year Business Environment Notes PDF Free Download

BBS 3rd Year Business Environment Notes PDF Download Info

Many Sources Say Business Environment Is Defined Thus: “The Business Environment Refers To The Whole Combination Of Economic, Social, Political And Institutional Factors That Surround The Conduct Of Company Activities.” —weimer, Arthur M. The Risks Arising From The Opportunities Can Be Said To Be Based On The External Elements In The Environment.

BBS 3rd Year Business Environment Notes PDF Free Download

This Will Include Political, Technological And Socio-economic Factors. Gluck, William, And Jauch “Business Environment” Is The Sum Total Of All The Surrounding Factors, Events, And Influences.—david Griffith “All That Which Extern To, And Impinges On An Organization Is The Environment.”– Schoell And Reinecke.

“The Business Environment Is The Sum Of All External Factors Affecting Organizations And Sectors And How They Perform.”—car “For Civilization To Flourish, Human Society Must Contend With Challenges.

So Too, Individuals And Organizations Must Master The Enmity And Dangers Of Their Own — Toynbee, Arnold J. From The Above Two Definitions, It Can Be Very Well Realized That The Business Environment Is A Mixture Of Various Complex, Dynamic And Risky External Factors In Which A Business Has To Operate.

Furthermore, The Term “Business Environment” Also Represents A Set Of Uncontrollable Factors Or Forces That Are Reflected Or Represented By Social, Legal, Economic, Political, And Institutional Factors Which Influences Or Impacts The Functioning Or Operating Capability Of An Organization.

The Business Environment Is Defined As The “Sum Total Of Circumstances Which Surround Man At A Particular Moment In Space And Time.” In Earlier Times, The Only Constituents Of The Human Environment Were The Biotic Communities And The Features Of Land, Water, And Air Of The Planet Earth. But Through The Progress Of Civilization And In The March Of Time, Man Extended His Environment Through His Social, Political, And Economic Functions.

The Term “Internal Environment” Refers To All Those Controllable Factors And Circumstances That Exist Within An Organization And Influence The Organization’s Behavior. The Internal Environment Of An Organization Includes All The Sub-elements As Follows:

The Most Important And Valuable Asset Of Any Organization Is Its Employees. They Must Commit To Working In The Interest Of Goals, Policies, And Principles Of The Company. Organizations Should Offer Reasonable And Fair Incentive Programs To Employees To Fulfill Their Desires And To Achieve Better Performance. Only Workers’ Dedication, Commitment, And Teamwork Can Enhance An Organization’s Productivity.

Board Of Directors And Shareholders: The Shareholders Are Directly Concerned With The Performance Of The Firm Since They Are Owners Of The Company. The Members Of The Board Are Elected By The Shareholders, And They Represent The Shareholders’ Interest. The Board Is Responsible For Guiding The Business And Laying Down An Acceptable Strategy. They Review The Overall Performance Of The Company And Advise Senior Management On Its Growth.

Organization Culture: Every Organization Has Its Own Culture. The Culture Of An Organization Simply Refers To The Various Values, Conventions, And Beliefs That Are Held In High Regard By Its Operations. It Helps In Binding All The Staff Together And Ensures That They Operate Within The Boundaries Set By The Organization. Culture Plays A Huge Role In The Way Decisions Are Made And Also In The Development Of Organizations.

Labor Union: Labor Union Refers To The Group Representing Workers Or Employees Of An Organization. It Presents Labor Issues And Feelings Before The Management For Constructive Solutions. The Good Labor-management Relation Keeps The Organization Free From Unwanted Disturbances.

Organizational Structure: The Structure Of An Organization Is Its Framework. It Defines The Roles Of Authority, Responsibility, The Management Structure, And The Activities Of Business Coordination.

Customers: Customers Trade Their Resources, Typically Money, In Exchange For The Products And Services That An Organization Provides. A Customer Can Be An Individual, Family, Business, Or Institution. Besides Providing The Money To Purchase The Product Or Service In Question, Customers Generally Provide Excellent Sources Of Feedback, Ideas, And Opinions. As Such, The Manager Will Need To Communicate With Them Quite Often.

Suppliers: They Are Businesses Concerned With The Provision Of Other Businesses With Resources Such As Labor, Materials, And Equipment. The Business Company Strives To Attain A Cheaper Price, Higher Quality, And Faster Delivery Since The Price And The Quality Of The Raw Materials That Are Supplied From The Suppliers Determine The Quality Of The Product. It, Therefore, Makes An Organization Very Competitive.

Government: It Is The Responsibility Of The Government To Protect The Interest Of The Public And Consumers. The ‘business System’ Is Regulated, And It Legislates Corporate Policies, Rules, And Regulations To Which All Companies Have To Adhere. Hence, Governments Play A Very Important Role In Influencing Corporate Policies, Practices, And Processes Of Modern Firms.

Those Which Provide Similar Or Substitute Goods And Services To The Target Customer Base And Compete For Resources With Other Firms Can Be Termed As Rivals. Businesses Have To Study Their Competition And Have Very Clear Marketing Plans So That They Can Better Serve Their Customers And Increase Their Share Of The Market.

Media: The Media Follows All The Major Business Decisions And Acts Of Public Interest. Thus, Managers Are Required To Communicate With The Media And External Audiences In An Effective And Responsive Way.

Financial Institutions: Capital Markets, Insurance Providers, And Banks Provide The Various Financial Intermediaries That Businesses Must Rely Upon To Secure The Funding Needed To Maintain And Grow Their Operations. The Terms And Circumstances Of Advances And Loans, As Well As The Promptness And Quality With Which Their Services Are Rendered, Have An Impact On How Business Enterprises Operate.

Examples Of Special Interest Groups Include Environmentalists, Labor Unions, Consumer Advocacy, Civic Society, And Other Professional Organizations. These Groups Pressure The Business To Improve Its Stance In Regard To Issues Such As The Environment, Waste Management, Appropriate Pricing, And Quality Services.

Business Environment And Strategic Management

Environmental Scanning

Environmental Scanning Is An X-ray Of The Environment. It Is The Process Of Understanding The Dynamics And Patterns Of Surroundings. In Other Words, It Is The Process That Collects Information On Events And Relationships Within A Firm’s Environment, Helping Top Management Strategize For The Future.

Moreover, Environmental Scanning Is A Technique That Determines The Opportunities And Threats Of The External Environment Through The Systematic Gathering Of Relevant Information. An Organization Collects Information About Its Competitors, The External Environment, And Itself. If Necessary, Then The Business Must Alter Its Plans And Strategy On The Basis Of The Received Information.

Environmental Scanning Refers To The Process Of Segmenting The External Environment Into Various Domains Such As Cultural, Economic, Political, Technical, And So On, And Hence Determining The Information Requirements Of A Company In Such Fields. Data Are Usually Collected By Monitoring And Forecasting Changes In Key Factors That Have Been Identified For Each Sector.

The Information Obtained From Such Data Is Then Integrated And Consolidated Into The Strategic Planning Process Of The Firm (Georgantzas And Acar, 1995).

Process Of Environmental Scanning Generates Data About The Environment. An Organization Can Build And Maintain Competitive Advantage By Developing Strategic Plan Based On The Information Gathered. The Data Gathered Through The Environmental Scanning Must Be Aligned To The Goals And Strategies Of The Organization.

It Is The Process Of Identifying The Relevant Factors That Directly Or Indirectly Influence The Proper And Effective Functioning Of A Business.

In Other Words, Environmental Analysis Is A Strategic Tool. It Is A Process Of Scanning The Internal And External Environment For Variables That Have The Potential To Affect The Success Of An Organization. This Study Will Include An Analysis Of The Danger Or Opportunity The Variables Can Pose. The Judgment Then Gets Incorporated Into The Decision-making Exercise. The Study Helps To Align The Strategy With The Environment Of The Firm.

The Corporate And Governmental Institutions Of A Country Are Both Integrated And Connected With Each Other In A Variety Of Ways. Business People And Entrepreneurs Are The Forerunners Or Businessmen Of The Modern Global Economy. Governments Have The Authority To Influence How Businesses Operate In Their Countries, Whether Market Economies Or Planned Economies.

The Government Shall Endeavor To Create An Enabling Environment For Business Organizations In The Quest For Sustainable Upward Economic Growth. To Ensure Free Competition And Smooth Operation Of Commercial Activities, Corporations Should Comply With Government Legislations.

Businesses Would Like To Maximize Their Profits. The Government, On The Other Hand, Seeks To Have Consistent Development And Stability In The Economy. These Two, However, Need Each Other Despite The Differences.

As Such, The Corporations, Organizations, And The Government Are Always Trying To Influence And Persuade Each Other On Various Issues. If The Economy Of A Country And Its Enterprises Have To Thrive, Then A Balanced Relationship Between Them Has To Exist.