Bus 321 Environmental
Bus 321 Environmental
Bus 321 Environmental
BUS 321
ANALYSING BUSINESS ENVIRONMENT
Telecommunication industry
Banking industry
Business environment
• These are internal and external factors
(environmental forces) that affect or
influence business activities.
• Knowledge of business environment sets
the foundation for development of
strategies for attainment of
goals/objectives.
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• The business environment is dynamic
and unpredictable
• Environmental scanning is a
continuous process
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Categories of business environment
• Two major levels:
– The external business environment:
made up by environmental
conditions/factors outside the
organizational boundary.
– The internal business environment:
Constitute environmental
forces/conditions/factors within the
organization.
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The external business environment
• Factors/conditions located outside the
organizational boundary.
• Sub-divided into:
– Macro business environment
– Micro business environment
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The Macro business environment
• Forces/elements outside the organization
which are beyond the control of the
firm/company i.e. uncontrollable factors
• An organization is required to adapt or
cope with those elements/factors.
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The economic situation Political/Legal
Household income ( purchasing power ) Political stability
Unemployment levels Government spending,
Interest rates eg on loans, deposits Attitudes of political leaders
Taxation towards various businesses
Exchange rates Laws and regulations (e.g. quality,
competition, tax, )
Demographic Social/cultural
Population Size (growth rate, distribution Values
Age structure(eg young, old) Beliefs
Ethnic groups Attitudes
Education level Lifestyles
Social groups
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Suppliers Consumers Distributors
number and size Target (intermediaries)
(supplier power) audience
affects price/cost (behaviors)
incurred by organizations
Competition
Attractiveness of the industry
Interest groups
Monitor business activities
-Media, general public
Five Forces Analysis
https://www.google.com/search?q=five+forces+analysis&rlz=1C1JZAP_enTZ881TZ881&sxsrf=ALeKk02uL_j2nvMfK-4cAkzeeUjnSCSlUw:1591164001697&tbm=i
sch&source=iu&ictx=1&fir=fsmGqojUDRB8pM%253A%252CTSOjqwcg19g_cM%252C_&vet=1&usg=AI4_-kT0OqsRvQzw0u-3soceRQmbkXb43Q&sa=X&ved=2a
hUKEwiEz-bo--TpAhUYCWMBHUOADZsQ_h0wAXoECAkQBA#imgrc=fsmGqojUDRB8pM:
INTERNAL BUSINESS
ENVIRONMENT
Internal analysis
• The internal business environment:
Constitute environmental
forces/conditions/factors within the
organization.
• Culture
• Structure
• Resources
Organizational structure
“a system of hierarchy in an
organization.
They can be
tangible or
intangible.
Organizational Resources
brand equity is
the value of a brand based
on how important a
customer views
that brand. Brand
value can affect a
Coca-Cola's brand value company's revenue and the
overall market.