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Tuesday, 3 November 2020

What is the components of business environment

 Internal environment: internal environment is composed of of multiple elements existing within the organisation including management current employees and corporate culture. Internet payment is the condition, people events and factors within an environment that influence is activity and choices particularly the behaviour of the employees. Factors that are frequently considered part of the internal environment also include the organisations mission statements and leadership styles and its organisational culture.

External environment: a business does not operate in a vacuum. It has to act and react to what happens outside the factory and with it is the office was. This factors that happen outside the business are known as external factors or influences of these will affect the internal functions of the business and also the objectives of the business and its strategies.

There are two major types of external environment micro environment and macro environment.

The environment in which an organisation exist can therefore be described in terms of the opportunities and threats operating in the external environment apart from the strengths and weaknesses existing in the internal environment.

The four environmental in few differences could be described as follows:

strength is an inherent capacity which an organisation can use to gain strategic advantage over its competitors.an example of strength is superior research and development skills which can be used for new product development so that the company gains competitive advantage. A witness is an inherent limitation or content which creates a strategic disadvantage.an example of a weakness is over dependence on a single product line which is potentially risky for a company in times of crisis.An opportunity is a favourable condition in the organisation environment which enables it to consolidated and strengthen its position. For an example of an organ opportunity is growing demand for the products or services that a company provides.

It is an unfavourable conditions in the organisations environment which creates a lyrics for your causes damage to the organisation. An example of a trade is the emergence of strong new competitors who are likely to offers shift competition to the existing companies in an industry. an understanding of the external environment, in terms of the opportunities and threats and internal environment in terms of the strengths and weaknesses is crucial for the existence of growth and profitability of any organisation.

SWOT analysis:a systematic approach to understanding the environment is the SWOT analysis.Business forms undertake SWOT analysis to understand the external and internal environment. Swot, which is an acronym for students weaknesses opportunities and threats. through such an analysis of the strengths and weaknesses existing within an organisation can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated.
An effective organisational strategy therefore is an one that capitalises on the opportunities through the use of strengths and neutralizes the threats by minimising the impact of weaknesses. the process of strategy formulation starts with comma and critically depends on the appraisal of the external and internal environment of an organisation. The environment of business can be broadly categorised into two:micro environment and macro environment.

Micro environment is related to small area or immediate periphery of an organisation.micro health and environment influences and organisation regularly and directly. Within the micro order the immediate environment in which a firm operates we need to address the following issues:

1.The employees of the farm and their characteristics and how they are organised. 2. The customer base on which the form relies for business. 3. The ways in which the form can rise its finance. 4. Who are the form supplies and how are the links between the two being developed? 5. The local community within which the firm operates. 6. The direct competition and how they perform.
the last point might act as a convenient linking point as we move towards the macro in shoes influencing the ways if form reacts in the marketplace.
Micro environment:consist of suppliers, consumers, marketing intermediaries, etc. These are specific to the state business of form and affects its working on short-term basis.

Macro environment has border dimensions. It mainly consists of economic technological political and legal in social and cultural. The issues concerning and organisations are:

1.what are its threads in the competitive world in which it operates and why? 2.which areas of technology might post it led to its current product range and why? 3. The bargaining power of suppliers and customers.

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