Assignment on Business Environment Introduction: Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors.
Materials Markets The internal environment is under the control of the marketer and can be changed with the changing external environment. Nevertheless, the internal marketing environment is as important for the business as the external marketing environment. This environment includes the sales department, marketing department, the manufacturing unit, the human resource department, etc.
External Environment The external environment constitutes factors and forces which are external to the business and on which the marketer has little or no control. The external environment is of two types: Micro Environment The micro component of the external environment is also known as the task environment.
It comprises of external forces and factors that are directly related to the business. Market intermediaries include parties involved in distributing the product or service of the organisation. Macro Environment The macro component of the marketing environment is also known as the broad environment.
The macro environment can be divided into 6 parts. Demographic Environment The demographic environment is made up of the people who constitute the market. These factors include the GDP, GNP, interest rates, inflation, income distribution, government funding and subsidies, and other major economic variables.
Physical Environment The physical environment includes the natural environment in which the business operates. This includes the climatic conditions, environmental change, accessibility to water and raw materials, natural disasters, pollution etc.
Technological Environment The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation.
Technology is one of the biggest sources of threats and opportunities for the organisation and it is very dynamic. Social-Cultural Environment The social-cultural aspect of the macro environment is made up of the lifestyle, values, culture, prejudice and beliefs of the people.
This differs in different regions. Importance of Marketing Environment Every business, no matter how big or small, operates within the marketing environment.
The business environment is one of the most dynamic aspects of the business. In order to operate and stay in the market for long, one has to understand and analyze the marketing environment and its components properly.
Essential for planning An understanding of the external and internal environment is essential for planning for the future. A marketer needs to be fully aware of the current scenario, dynamism, and future predictions of the marketing environment if he wants his plans to succeed.
Understanding Customers A thorough knowledge of the marketing environment helps marketers acknowledge and predict what the customer actually wants. In-depth analysis of the marketing environment reduces and even removes the noise between the marketer and customers and helps the marketer to understand the consumer behaviour better.
Tapping Trends Breaking into new markets and capitalizing on new trends requires a lot of insight about the marketing environment.Unit 1 Business Environment Assignment 1 Understand the organisational purposes of businesses 2 Understand the nature of the national environment in which businesses operate 3 Understand the behaviour of organisations in their market environment 4 Be able to assess the significance of the global factors that shape national business.
Download file to see previous pages Understand the nature of the national environment in which businesses operate Moreover, these organisations are able to meet the market demand effectively.
P&G complies with all the state and federal laws including the Honest Leadership Act, Lobbying Disclosure Act and Open Government Act. A business does not operate in a vacuum.
It has to act and react to what happens outside the factory and office walls. The main factor that affects most business is the degree of competition – how fiercely other businesses compete with the products that another business makes.
External Environment (Introduction) Revision quizzes. Businesses do not operate in a vacuum; they operate in an environment.
In this lesson, you'll learn about the business environment, including what makes it up. A short quiz follows the lesson. LO2 Understand the nature of national environment in which businesses operate Explain how economic systems attempt to allocate resources effectively In the various places of the world, different countries have different amount of resources from which businesses produce products to satisfy the wants of people.
LO 2 Understand the nature of the national environment in which businesses operate. Explain how economic systems attempt to allocate resources effectively Part B Task 2a Assess the impact of fiscal and monetary policy on business organisations and their activities Part B Task 2b.