The success of business depends upon alertness and adaptability with the changing environment. Macro Environment-The Macro Marketing Environment includes all those factors that exist outside the organization and can not be controlled. Micro environmental factors include suppliers, customers, marketing intermediaries, financiers, and public perceptions. Successful Conduct of Business The business executive can successfully conduct the business operation. Are there government projects in your area that will increase traffic? Natural calamities like floods, droughts, earthquake etc. Such an environment influence business and also gets affected by its activities. Draw from the case study and further independent research.
This is a big investment. Besides, there are two other factors, viz. Business lacks control over external environment. There are three features common to this relationship between business and environment. In this regard if business is successful or finds it slow in expansion, it may consider globalization via international trade.
These include customers,competitors, suppliers, government, and the social, political, legal and technological factors etc. Political conditions in India differ from those in Pakistan. And those from emerging markets expect competitiveness to increase the most, as companies from developed markets enter and local players intensify their focus. Macro environmental factors include economic, sociocultural, political, legal, technical, and environmental considerations. It helps the business enterprises for meeting the challenges successfully.
Environment is inseparable part of business : Environment is an integral part of any business. For example, the celebration of Diwali, Id, Christmas, and Guru Parv in India provides significant financial opportunities for greetings card companies, sweets or confectionery manufacturers, tailoring outlets and many other related business. Task 1: The Contextual Environment: 1. It will reduce the profit margin and will make the opportunities for expansion to slip. A not-for-profit service organization such as the University aim is to help all people without any profit. Business enterprises continuously interacts with its environment for taking inputs like raw materials, capital, labour, energy etc. Understanding and monitoring them is crucial in order to anticipate, prepare for and successfully adjust to the change that is both inevitable and constant.
Emerging markets are growing, but there is a significant variation in performance across them. Modern business is more complex, flexible and highly un-predictable. No, business environments and how companies react to external factors are key to their success. The major features of business environment are as follows: 1. All these activities satisfy the diverse needs of the society and also help generate profit of business firms or units. Social and cultural environment also influences the demand for variety of goods and the type of employees the industry require. The significance of business environment is explained with the help of the following points: i Help to understand internal Environment: It is very much important for business enterprise to understand its internal environment, such as business policy, organisation structure etc.
They share a symbiotic relationship. The legislature takes decision on a particular course of action, the executive implements those decisions through government agencies and the judiciary serves as a watch-dog for ensuring public interest in all the activities of legislature and executive. There are innovations in different scientific and engineering fields such as lasers, robotics, food preservatives, medicine etc. We will review factors for both micro and macro environments, as well as how they relate to our gas station example. In the case of recession, the marketing practices should be different as what are followed during the inflation period. The public welfare organization such as the police, fire service, provides services to all members of a given population. The way your company reacts to economic changes is key, and this is where creativity comes into play.
Taste and values cherished by people in India and China vary considerably. Objectives are needed in every area where performance and results directly affect survival and prosperity of a business. Thus, each marketing strategy is customer oriented that focuses on understanding the need of the customers and offering the best product that fulfills their needs. Opening of New Avenues Environment opens fresh avenues for the expansion of new entrepreneurial operations. The business environment helps to understand government policies such as, export-import policy, price policy; monetary policy, foreign exchange policy, industrial policy etc. If business persons possess a good understanding of the business environment, they can easily recognise, analyse and react to the forces that affect the firm. Macro external environment are those that affect the entire economy and not just a business.
Additionally, some external factors are beyond your control. Uncertainty: Business environment is largely uncertain, as it is very difficult to predict future happenings, especially when environmental changes take place too frequently. The firm can utilize its resources advantageously and derive the maximum benefits. Extent of differentiation or standardisation of the product 7. There are several factors of the customer and the business environment, such as suppliers, technology, law and government activity and the market, social and economic trends competitions and owner, is improved. Contents Abstract ii Introduction iv Organizational behavior in their market environment 1 Market structure 1 The Maldivian market structure 2 How market structure limits the pricing and output decisions of organizations 2 Market forces and organizational responses 3 Market forces in the Maldives and how it shapes the responses of organizations 4 How the.