This paper examines the categories of business environments and their impacts on the business. A business environment is a force that affects the functionality of the business. They can either be internal(micro) or external(macro) environments. The internal environment consists of customers, suppliers, competitors, the public, and marketing intermediaries. The external environment consists of one, economic factors of a country example, interest rates, and foreign exchange rates. Second is social and cultural factors that pertain to the beliefs of the surrounding society. Third, is political and legal factors that concern the existing laws and leadership of a country. Lastly are the technological factors that relate to the level of innovation and technological adoption. There exist various impacts on business environments on business.
business environments and their impacts on the business
IMPACTS OF BUSINESS ENVIRONMENTS ON STRATEGIC BUSINESS DECISIONS.
The impacts of business environments on businesses can either be positive or negative. This paper focuses on the impacts of external business environments. A business only thrives if the economy is stable; hence a subsiding economy affects business productivity. Social and cultural factors affect the operations of a company by dictating what is acceptable to society. For example, businesses cannot sell pork to the Muslim community because their religion doesn’t allow pork consumption. Besides, a company can only operate in a politically stable environment adhering to existent laws. Therefore, consideration of the political and legal environment is crucial. Finally, the technological adoption rate determines the success or failure of businesses. Therefore, business operators should understand the categories of business environments when starting a business.
impacts of business environments on strategic business decisions
CHARACTERISTICS OF BUSINESS ENVIRONMENTS RELATING TO A BUSINESS.
The categories of business environments have various characteristics. First is the totality of external forces that influence the functioning of the business. Secondly, business environments should compose of both specific and general forces that affect the company’s operations. Third, the flexibility of business environments is crucial, allowing adaptability to change. Fourth, the uncertainty of the environments hence predictability of the future, is difficult. Fifth, business environments are complex, thus determine the influence of a specific force is difficult. Finally, business environments are relative hence different in different regions. For example, the political environment varies from one country to another. Therefore, managers must assess the impacts of business environments on businesses in loss prevention.
characteristics of business environments relating to a business
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