Individual and Environmental Impacts on Businesses

Individual and Environmental Impacts on BusinessesThe key for fear acquisition or success requires two elements the individual and the environs. Absence of either value makes the goal unachievable. All components of a vexation environment shoot a air or indirect relation on business. The extraneous factors, forces that cannot be controlled by an individual business enterprise and their soldieryagement and eat the capability to govern the business enterprise is termed as Business Environment. It includes every exterior forces within which a business organizations functions. Working of the business process is influenced by these forces and factors. indeed these forces and factors which stay outside the business, that are uncontrollable by single business entity but have an effect on business is called Business Environment. These factors or forces are customer, competitors, government, creditors, socio-cultural organizations, national and internationalistic organizations, p olitical parties etc. These factors affect the business directly and indirectly according to its natureThe business environment classified into threeRemote or planetary environmentIndustry environmentCompetitive environmentFig Environmental AnalysisAccording to Henry (2008), an organization has only two main environments i.e planetary and free-enterprise(a) environment. The competitive environment consists of industry and markets in which the organization operates. worldwide environment is also named as macro-environment. The name Macro-environment is because the fluctuations that keep in this environment, will have an effect that go beyond the limits of the firms and industries. The below figure shows the connection between competitive and general environment of a firm as per Henry (2008) removed OR GENERAL ENVIRONMENTRemote environment can be also called as General environment and macro environment. Macro factors are for the most part more uncontrollable whereas micro enviro nment factors are controllable as compared to macro factors. When macro factors become unmanageable the success of the business relies on the flexibleness of the business to the changing environment. According to Hill and Jones,(2009), Macro-environmental factors sometimes influence the nation as a whole . Explained below are some of the macro environment factors.Economic Environment The sum total of the nature of economic system of the country, business cycles, the socio-economic infrastructure etc is referred as Economic environment. Success of a business man depends on visualizing the outside factors influencing business, foreseeing changes that may occur in market conditions and making maximum return on minimum investment considering these outside or extraneous factors.Social Environment The value system of the society, which has an influence on the running of the business, is determined by the social dimension or environment of that Nation. Sociological elements that have an ex tensive impact on the business are costs structure, customs and conventions, mobility of labour etc. Work culture and mobility of labour, work groups etc are determined by the above factors.Political Environment Political organizations including philosophy of political parties, ideology of government or party in power, character and level of bureaucracy influence of primary groups etc are influenced by the political environment of a country. The business, to a great extent, is affected by the political environment of a Nation well-grounded Environment Legal environment comprises flexibility and malleability of law and other legal rules governing the business. The exact rulings and decision of the courts might be included. These concern the business and its administrators to a great extent.Technical Environment Development of technology in country has a great influence on the business. The variety and quality of goods and run to be produced and the nature, quality etc of plant and m achinery to be used are determined by the technology opted by the industry. Following are also affected by technical environment, the business in terms of investment in technology, consistent application of technology and the effects of technology on markets.COMPETITIVE ENVIRONMENTThis nub an environment in which competitions between organizations are high. A minute change in customers and competitors affects competitive plan of organization. It includes inventions of new products by competitors, developing new convey of distribution and emergence of new customer value. So competitive environment is closely related to the firm than the general environment.(Dobson et.al. 2004). Problems or opportunities resulting from variation in the competitive environment and in customer necessities are recognized by competitive environment compendium. Based on sound analysis, this procedure should be seen as dynamic, resourceful, and opportunity-focused. Thus two main areas that needs to be fo cused in thisCustomer analysisCustomer analysis at the business entity level involves building a complete understanding of customers, their needs and wants, and how these changes within a given market (market segmentation). Moreover, importance must be given to these changing needs, how is it occurring and what an organization should do to draw in change to the marketplace. Growth comes not by duplicating the competitors but by introducing creative and innovative strategy with flexibility, keeping in mind the changes that may occur in future to market conditions. Like any analysis, it is also done to identify the innovative strategies or plans that will create value for the business.Competitor analysisThis analysis is undertaken at the business-unit level. With specific competitors, we assume that the unit in question is engaged in oligopolistic competition in which the market is dominated by slim number of sellers. In a perfect competition there is no purpose of this analysis .Wh ile conducting competitor analysis, we have to follow certain defined procedure. affinity BETWEEN GENERAL AND COMPETITIVE ENVIRONMENTSFirms collect information to take decisions regarding current running of business and for future decision making through a feature calculation of internal and external Environments.Elements that compose general environment in a wider society influence the industry and the firms in that industry. These are classified into sextuplet environmental segments demographic, economic, political/legal, socio-cultural, technological, and global. A firm does not have a direct control over the general environments segments and elements. For making appropriate decisions and plans, successful companies collects amounts of selective information and information so that they can identify or understand to each one segment and implications to be done.Competitor analysis refers to the way or method in which how companies collect and interpret information about their co mpetitors. Understanding the firms competitor environment complements the insights provided by studying the general environment helps identifying in the firms competitor environment.Strategic intent, strategic mission, and strategic actions of a firm are developed as a result of the three analysis that are done to identify the outside environment. General environment analysis is focused on the future on the other hand analyses of competitors are focused on forecasting the dynamics of competitors actions, responses, and plans. Although we discuss each analysis separately, if we integrate the information gained from both the two analysis, performance of the firm is improved to a great extent.