Business Environment An anatomy - Environment o Something external to an individual or organization o Strict sense all external factors which have

a direct or indirect bearing on the activities of business. o However some experts talk about internal and external environment. o Further external can be divided into micro and macro environment. - Internal Environment o Value system Negative Positive o Goals and objectives Maximize long term profit Firm seeks to satisfice , that is to attain a satisfactory overall performance in terms of set aspiration goals rather than maximize profits , sales, production etc. o Management structure Professionally managed Family controlled. o Internal power relationship Conflicts can vitiate o Physical resources and the technology o Human resources - External environment o Micro environment

 Refers to such players whose decisions and actions have a direct bearing on the company. Two main business aspects are production and selling Suppliers of inputs o Can they interrupt o Can the monopolize Workers and their unions o Enhance collective bargaining o Cooperative or disruptive Customers o Demanding or adjusting Market intermediaries o distributors Competitors o Brand competition o Product competition o The desire competition o Non price competition o Price competition Public o Any group that has an actual or potential interest in or impact on a companys ability to achieve its objectives. o Macro environment Refers to all those economic and non economic factors which exercise their influence on the business activity in general and

 this determine opportunities that a company may have to promote its business
o Economic environment

Domestic Global Non economic Political/legal Socio cultural Demographic Technological Natural