Overview of Business Environment

Faculty : Madhavi Kodamarty

Subject : Government, Business and Society
 Why to Study Environment

Internal Business External

Environment Decision Environment
 International
Environment

Economic
Forces
Socio Industry Legal
Cultural

Governme
nt Resources Supplier
Structure
Cultural
Customer
Competitor
Political
Techno-
logical
 Political Legal INTERNAL

Physical Rival
Firms

E
Suppliers C
New O
Entrants N
FIRM I
Cultural Firm M
I
c
Substitute
Products
Buyers

Technological
Global

EXTERNAL
 The General Environment
●
Demographic Segment:
●
Population Size
●
Age Structure
●
Geographic Distribution
●
Income Distribution
●
Economic Segment
●
Inflation Rates
●
Interest Rates
●
Budget
●
Personal saving rate
●
Gross domestic product.
 Political and legal segment
●
Antitrust laws
●
Taxation Laws
●
Deregulation Philosophies
●
Labor laws
●
Education Philosophies and policies
 Sociocultural Segment
●
Women in the workforce
●
Workforce diversity
●
Attitudes about the quality of work life
●
Concerns about the environment
●
Shifts in work and career preferences
●
Shifts in preferences regarding product
and service characteristics
 Technological Segment
●
Product Innovations
●
Applications of Knowledge
●
Focus of Private and Government –
supported R&D expenditures
●
New communication technologies
 Global Segment

●
Important Political Events
●
Critical global markets
●
Newly industrialized countries
●
Different cultural and institutional
attributes.