Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

Transcription

1 Ibrahim Sameer (MBA - Specialized in Finance, B.Com Specialized in Accounting & Marketing)

2 Business Environment What is your understanding about Business Environment?

3 Definition of Business Environment The combination of internal and external factors that influence a company's operating situation. The business environment can include factors such as: clients and suppliers; its competition and owners; improvements in technology; laws and government activities; and market, social and economic trends.

4 Stakeholders Define stakeholders?

5 Stakeholders Stakeholders are the people who have interest in the organization activity. Eg: Government, Owners, Managers, Workers, Consumers, Community.

6 Stakeholders

7 Owners They invest capital in the business and get profits from the business. Objectives: Profits, growth of the business

8 Workers Employees of the business who give in their time and effort to make a business successful. Objectives: Job security, job satisfaction and a satisfactory level of payment for their efforts.

9 Managers Employees of the business who manage a business. They lead and control the workers to achieve organisational goals. Objectives: High salaries, Job security, Status and growth of the business.

10 Consumer These are the people who buy the goods and services of the business. Objectives: Safe and reliable products, value for money, proper after sales service.

11 Government Government manages the economy. The government charges a tax from the business and also monitors the working of businesses in the country. Objectives: Successful businesses, employments to be created, more taxes, follow laws.

12 The Community Community is all the people who are directly or indirectly affected by the actions of the business. Objectives: They expect more jobs, environmental protection, socially responsible products and actions of the business.

13 External Influences on Business Businesses are influenced by a range of factors over which they have little control these are called external influences.

14 PEST Analysis PEST analysis is a tool for helping businesses evaluate external influences: Political factors Economic factors Social factors Technological factors

15 Political Factors Political and legal factors can have significant impacts on businesses. Government policies affect business activities through:

16 Political Factors Taxation Subsidies Regulation Legislation Decisions related to trade and access to markets such as the enlargement of the European Union

17 Political Factors Government legislation affecting businesses includes: Health and safety laws Employment laws Consumer protection Environmental protection Competition laws

18 Economic Factors The current or expected economic climate will affect businesses. Factors include: The business cycle Interest rates Exchange rates

19 Economic Factors Inflation Unemployment Globalisation Emerging markets

20 Social Factors Social influences include factors relating to both workers and consumers such as: Demographics Changing trends and tastes Changing working patterns Ethical issues Environmental concern

21 Technological Factors New technologies can prove to be both opportunities or threats to organisations in terms of, for example: Marketing Organisational culture Production methods New product development Communication

22 Q & A