Question

1. Discuss five (5) external environmental factors in the business environment that could have an impact on your proposed business identified in question 1.

                                                                                                                 

Answer 1

Business meaning

A business is defined as an organization or enterprising entity engaged in commercial, industrial, or professional activities. Businesses can be for-profit entities or they can be non-profit organizations that operate to fulfill a charitable mission or further a social cause.

The term "business" also refers to the organized efforts and activities of individuals to produce and sell goods and services for profit.

Business Environment

To get a proper understanding of the business environment, we should step by step analyze individual elements of this term.

First of all, “environment” can be acknowledged as the surroundings or conditions in which a specific activity is carried on.

Internal Environment Factors

Internal factors can be defined as anything within the company and under the control of the company no matter whether they are tangible or intangible. These factors after being figured out are grouped into the strengths and weaknesses of the company. If one element brings positive effects to the company, it is considered as strength.

There are some of internal environment factors:

1. Plans & Policies
2. Value Proposition
3. Human Resource
4. Financial and Marketing Resources
5. Corporate Image and brand equity
6. Plant/Machinery/Equipments (or you can say Physical assets)
7. Labour Management
8. Inter-personal Relationship with employees
9. Internal Technology Resources & Dependencies
10. Organizational structure or in some cases Code of Conduct
11. Quality and size of Infrastructure
12. Task Executions or Operations
13. Financial Forecast
14. The founders relationship and their decision making power.

External Environmental Factors

External elements are affecting factors outside and under no control of the company. Considering the outside environment allows businessmen to take suitable adjustments to their marketing plan to make it more adaptable to the external environment.

Types

Macro factors:

1. Economic
2. Political/legal
3. Technology
4. Social an
5. Natural

Micro factors:

1. Customers
2. Input or Suppliers
3. Competitors
4. Public
5. Marketing & Media
6. Talent