Presentation on Factors influencing Business environment

Business environment:
A business enviornment is an enviornment in which business is conducted. Or
Business environment encompasses all those factors that affect a company's operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.Factors influencing Business environment:

The factors influencing Business environment are enternal and internal. They are: External factors: 1.Social 2.Legal 3.Economic 4.Political 5.Technological 6.Ethical Internal factors: 1.Organizational structure 2.Production 3.Marketing 4.Finance 5.Human Resource 6. R & D

In detail the factors are:

External factors:
1.Social:-How consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population.

2.Legal:- The way in which legislation in society affects the business. E.g. changes in employment laws on working hours.
3.Economic:- How the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors.

4.Political:- How changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works. 5.Technological:- How the rapid pace of change in production processes and product innovation affect a business. 6.Ethical:- what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.

Internal factors: 1.Organizational structure:-The organisation structures the composition of the Board of Directors, experts of professionalisation of management etc. are important factors influencing business decisions. Some management structures and styles delay decision while some others facilitate quick decisions making. 2.Production:

3.Marketing:- Marketing intermediaries include middlemen such as agents and merchants like: help the company find customers or close sales with them , physical distribution firms which assist the company in stocking and moving goods from their origin to their destination such as advertising agencies marketing research firms etc and financial intermediaries which finance marketing activities and insure business risk. 4.Finance:-

5.Human Resource:- The characteristics of the human resources like skill, quality, morale, commitment, attitude etc. could contribute to the strength and weakness of an organisation. 6. R & D:-

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