Question

Business is affected by different external factors which collectively form the business environment. Your task is to write an essay explaining the following:

• Write the meaning of General environment

• Explain the different factors and how business and external environment affect each other.

• Introduction: 1 mark

• Body : 4 Marks

• Conclusion : 1 mark

• Reference ( as per Harvard Citation Style ) : 1 mark

Answer 1

Impact of Business and general environment

In business of any kind, there are two types associated with external business environment , General environment and task environment.

General environment: It consists of all the different external factors which possibly have a significant impact on the formation and execution of the business on daily basis as well.

These could be related to environment, technology, geography, condition of the specific country's economy, political factors and legal framework associated.

Task environment : The factors related to this particular environment is associated with the business's ability to acquire essential utilities required to run the business. These also includes capitulating output from the goods sold and acquiring sufficient raw material or sevices to keep the business running.

Economic and demographic environment: It plays an important role in finalising the business plan and pitching of marketing tactics to amend the situation in the favour of business being established.

If the economy of a country is going well and good, that certainly increases people's purchasing power and eventually it would be a good economic environment for the business to flourish. Similarly, if country is not doing so well but developing constantly, then affordable pricing and robust R & D to deliver quality with reduced cost would boost the business.

Legal environment: legal frameworks changes demographically and should be taken care of accordingly by the business when it plans to go global.

Competition and technology: markets are fairly competitive at most of the places and the advanced dynamic changes in the technology is keeping the company's on the edge to transform and adapt themselves to stay in the competition.

Adaptability is the key factor when it comes to this external environment.

conclusion:

In conclusion, external factors are not a thing which could be controlled and comes under busiensses to amend accordingly. It's the companies that need to mould themselves with these factors. It can react to these changes and make decisions to help themselves remain successful.

A SWOT analysis is an ideal option to make a framework to tackle external environment factors .