Business Environment Anu Veerendra Assistant Environment Internal environment

Business Environment. Anu Veerendra Assistant Environment

Internal environment � These are also sometimes known as the internal factors. The internal factors are the strengths of the company and its weaknesses

Internal factors are like: � Shareholders / promoters value � Mission / objective � Management structure / nature � Employees � Unions � Internal power relationship � Company image / brand equity � Physical assets/ facilities � R & D and technological capabilities � Human resource � Marketing capabilities

External environment I. Micro environment II. Macro environment

Micro Environmental Factors - SW � Micro Environmental factors of an organization are those aspects which have a direct influence on the organization’s relationships. . The Micro Environment factors are controlled by the company itself. The weaknesses are meant to be changed into strengths and the strengths are meant to be maintained and improved.

Micro environment � Customers � Suppliers � Competitors � Publics � Financiers � Marketing intermediaries

Macro Environmental Factors-OT The Macro Environment factors of an organization include the socio-cultural factors, the economic factors, the political factors, the demographic issues, technological factors. That’s because the factors involved can’t be controlled by the company. The example of Macro Environmental factors are the population growth rates, the lifestyle trends, the taxation laws, the inflation rate, the employment rates, the technological advances and many more. The company needs to prepare for the changes in the macro-environmental factors.

Macro environment � Global environment factors: e. g. competition from MNC’s, increasing opportunities as world has become one market, India & WTO. � Demographical environment factors: � Technological environment factors : � Economic environment factors: � Political, govt. and legal environment factors: � Social and cultural environment factors: � Natural factors