Understanding the Business Environment
Sunny Puri quoted Business environment refers to the conditions, events and influences that affect a company’s operation. It includes economic, social and technological factors that can either positively or negatively impact a company’s business operations.
What are internal factors?
Macro Environment: The macro environment consists of the broad set of external forces that have the potential to affect an organisation on a large scale. These factors include political, economic, social and technological (PEST) forces.
This type of environment can be challenging to navigate, especially for businesses that operate in developing economies with high levels of uncertainty and risk. Understanding these factors can help businesses make better decisions about how to operate and plan for the future.
Micro Environment: The micro environment is a more detailed view of the external forces that directly impact an organisation’s day-to-day operations. This includes suppliers, customers, employees and competitors.
Without these elements, a business cannot function. A successful business must develop strong relationships with all of these stakeholders to ensure the best possible outcomes for their business.
Customers: Customer expectations are constantly changing, so it’s important for businesses to understand their needs and provide them with the products and services they need. They also need to ensure that their business is aligned with their customers’ values and goals.
Employees: Recruiting and retaining quality employees is vital for a business to succeed. It’s important for employers to offer competitive wages and benefits, provide a positive work environment and make sure their employees feel like they’re part of the company’s mission.
…
Read more