Dimensions of business environment - class-XI

Composition of family is an example of social environment. Social environment consists of the customs and traditions of the society in which business is existing. It includes the standard of living, taste, preference and education level of people living in the society where business exists.

To give people the power to share and make the world more open and connected is mission of Facebook as mission can be defined as goal
or objective of the organization. Mission statement defines what the
organization is all about and its reason for existing.

A mission statement is a brief description of why a company or nonprofit organization exists. In one to three sentences, it explains what the company does, who it serves, and what differentiates it from competitors. It’s used to provide focus, direction, and inspiration to employees while it tells customers or clients what to expect from the business.

Technological factor has been the most rapidly changing component in an organization's general environment in the past quarter century. Technological factors involve changes taking place in the method of production, use of new equipment and machineries to improve the quality of product.

A business environment consists of internal environment within a company or an organization and the external environment, which are the external environmental factors affecting the business.

To develop professionals of caliber and facilitate good corporate governance is the mission of ICSI. A mission can be defined as a goal or objective of the organization. The mission defines what the organization is all about and its reason for existing.

Threat to go on strike is an overt expression of resistance to change. It is considered as an overt expression of resistance to change as it is directly observable. Threat to go to strike is not hidden expression.

Business environment is multifaceted as it is an opportunity for some but a threat for others. Changes may be viewed differently by different individuals. Early identification of opportunities helps an enterprise to have the first mover advantage and tap the opportunities at the earliest.

The Competition Act, 2002, which replaced the MRTP Act, was drafted based on the recommendations of the Raghavan Committee.

Inflation is defined as a sustained or persistent increase in the general price level of goods and services in an economy over a period of time.

The Monopolies and Restrictive Trade Practices (MRTP) Act was enacted in 1969 to prevent the concentration of economic power.

The Wildlife (Protection) Act was adopted in 1972. Prohibition on Hunting of Specified wild animals, birds and plants, setting up and management of national parks and wildlife sanctuaries, control of Trade and Commerce in wildlife and wildlife products are some objectives of Wildlife Protection Act.

Forces or conditions or surroundings within the boundary of the organization are the elements of the internal environment of the organization. The internal environment consists mainly of the organization’s owners, the board of directors, employees and culture.

The general forces that affect the business environment are the internal and external factors that are the social conditions in which the business operates, the customers that the business targets and the suppliers that supply the resources for the business to function.

The internal environment consists of all the things that makes the business function within the organization. Some of the internal factors of business environment are vision and mission, employees, technology etc.

The changing social environment has led to increase in the number of working women and the rise in number of family household of changes in family.

Internal strategy of a business consists of all the internal factors necessary for the success of the business. It consists of factors such as media, employees, management etc. Hence, internal strategy of a business invariably takes care of media and employees. 

The consumer attitude and buying behavior are the marketing and promotional factors that play role in the external environment and will not classify as a legal-political external environment.

STEEP is an acronym that means socio-cultural and demographics, Technology, Economic conditions, Ecology and physical environment, Political and legal

The social environment includes composition of family, number of households, literacy rate of a certain population, money supply in the economy and per capita income of a family.

A society's basic values, lifestyles, culture, preferences are all parts of its socio-cultural environment.

The macro-environment includes those things that may impact businesses but which are outside of their control. It is the larger, external environment within which businesses operate from an industry or economic standpoint. It is also known as General or Remote environment. Macro factors include inflation, government budget, etc. 

Recruitment of public relations consultants is a strategic decision made by a firm to manage its image within the competitive environment, as it directly influences how the firm is perceived relative to its rivals.

Macro-environment is concerned with major issues and upcoming changes in the environment as the macro-environment affects the functioning of the business much more than the micro-environment.

The micro-environment consists of factors close to the company that affect its ability to serve its customers (e.g., suppliers, employees, competitors). Technology is considered a macro-environmental factor because it affects the entire industry or society at large.

Specific forces affects an individual enterprise. Specific forces affect a particular business. Specific forces of business environment includes investors, customers, competitors and suppliers.

The term " threat of entrants" as per Porters approach to industry analysis is the framework is a means of identifying the forces, which affect the level of competition in an industry or sector. Porter classifies 5
competitive force in the business environment.
Porter's five forces can be defined as a simple but powerful tool which
help to understand the competitiveness. It also helps to formulate
business strategy.

Macro-environment refers to the general environment that can affect all the working conditions of the business. The main elements involved in this environment are PESTLE i.e. political, economic, social, technological, legal and environmental. Hence, it is concerned with all of the mentioned elements.

Social factors of PESTLE Analysis
-culture of the society that an organization operates within
-dempgraphic
- age distribution
- population growth rates
- level of education
- distribution of wealth
- social classes, living conditions and lifestyle

External environmental scanning includes scanning of legal environment since legal environment does not depend on the internal activities of the business organization. Legal environment deals with the laws which the government make for the business organizations functioning in an economy.

Environmental scanning includes both internal and external. The complete awareness and understanding of business environment is known as environment scanning. Environment scanning is conducted to find out the influence of different factors and persons on the business transactions. It is done to identify opportunities and threats affecting the business organization.

The imposition of strategy by Government in companies where it has extensive regulation is the most appropriate externally imposed strategy since externally imposed strategy can be defined as strategy which is deliberately imposed on the organization from the elements of the external business environment upon which the organization has no or little control.

Research which is pro-actively carried out for a specific purpose is called primary research. It helps to acquire data to serve the specific purpose. Primary research generally obtains information from the direct sources,

PESTEL stands for
P- Political
E- Economic
S- Social
T- Technological
E- Environmental
L- Legal

Resumes are primarily used as a screening tool to filter out candidates who do not meet the minimum qualifications or requirements for a position.

1976 was a watershed year in the history of e-mail marketing. By 1976 email had really taken off, and commercial packages began to appear. Within a couple of years, 75% of all ARPANET traffic was email.

Following can be classified as "external forces":
(I) Political forces
(II) Educational and cultural forces
(III) Technological forces External forces includes all
entities that exist outside its boundaries, but have significant
influence over its growth and survival. An organization has little or no
control over external forces but it needs to constantly monitored to
adapt to these external changed.

A general enduring statement of the intent of business which reflects the belief and philosophy of management is known as mission.A mission statement defines the company's
business, its objectives and its approach to reach those objectives. In
short, mission is the aim of the company. It states the principles
which a company abide to reach its goal.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Environment Scanning is
careful monitoring of an organization's internal and external
environments for detecting early signs of opportunities and threats that
may influence its current and future plans. It helps to improve the business organization's condition in the market. It helps to analyse threats and grab the opportunities at the earliest.

Environment Scanning is
careful monitoring of an organization's internal and external
environments for detecting early signs of opportunities and threats that
may influence its current and future plans.The importance of environmental scanning was recognized by life insurance firms in the late 1970s.

Specific forces of the business environment refers to those forces which does not affect every department of the business organization. For example: investors, social conditions, competitors and suppliers are the specific forces.

Technology affects the competitiveness of a firm. It affects greatly since improved technology helps to yield greater profit and reduce the cost.

Financial factors consist of financial policies, financial positions and capital structure. It is an important internal factor which has a substantial impact on business functioning and performance. Financial facilities are required to start and operate the organization.

Management Structure and Nature is a part of external environment. This structure of the organization influences the business decisions. These needs to be appropriately managed for smooth functioning and operations.

Demand for packaged food is a social factor. It is one of the most important factors among other macro environmental factors. It leaves an impact directly or indirectly on the business environment.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Vision statement describes the desired future position of a company. It  projects the future dream. A vision statement is a picture of a company in the future which iis inspirational note and the framework for  all strategic planning.

Passive scanning helps to take the ad hoc decisions. Ad hoc decisions refer to those decisions which are taken in case of emergencies. Passive scanning is also known as ongoing scanning which takens place unconsciously in the organization.

Environment scanning involves monitoring of monitoring internal and external environment.The
careful monitoring of an organization's internal and external
environments for detecting early signs of opportunities and threats that
may influence its current and future plans means environment scanning.

Emphasis on safety is not a part of Environmental factor since it is not related directly to the environment. Emphasis on safety falls under the social factor since it includes values and practices.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Population growth rate  is not a political factor that impacts external macro-environment. It is a demographic feature. Population growth rate specifies the rate at which the population is increasing or decreasing.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

PESTLE
analysis is a useful tool for understanding the big picture of the
environment in which an entrepreneur is planning to operate.PESTLE stands for Political, Economic, Sociological, Technological, Legal, and Environmental.

Political environment refers to legislature. The political environment of a country gets influenced by the political organizations such as philosophy of political parties, ideology of government or party in power, nature and extent of bureaucracy influence of primary groups.

Buyers cannot exercise high bargaining power over their suppliers if there is a high concentration of suppliers. Bargaining power of the buyer refers to the relative power of the buyer which he uses to influence sellers. In this situation, buyer have very less relative power to exercise on sellers.

Internal factors of business environment include vision and mission of the organization and other internal mechanism  of  the organization. The internal factors has received considerable  attention by firms. A business has absolute control  on the internal factors of the business organization.

The imposition of strategy by Government in companies where it has extensive regulation is the most appropriate externally imposed strategy. It is an externally imposed strategy since government is an external agent but it does affect the activities of the business organizations indirectly.

Analyzing process of change in the business environment involves conceptualizing it as dynamic. Business environment keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competiion in the market.

Demographic environment relates to population.Demographics refer to the size, density, distribution and growth rate of population.Demographics is a part of the macro environment of the business organization. It is one of the key factors of the business environment.

A society's basic values, lifestyle, culture, preferences are all part of its socio-cultural Environment. These factors directly or indirectly leave n impact on the business environment.  Societal values and lifestyles are dynamic in nature- these changes over time.

Big and powerful firms adopt the response of gaining command over the environment- this statement is true. It is seen that large firms together create an oligopoly and hence price determination is done by these big and powerful firms.

Demonetization and GST are examples of changes in political environment. Political environment of a country gets influenced by the political organizations. Demonetization and GST are classified under political environment since these reforms are taken by the government of India..

Wait and watch is a response of least resistance- this is a true statement. This kind of statement are optimistic in nature and when somebody in a company perform an activity in a lethargic manner then such kind of statement are passed to assure that person that the work can be performed in an efficient manner. 

Innovative approach requires no feedback system- this statement is false. Innovative approach also requires feedback system since feedback is of utmost necessary to check whether the planning and strategy of the business gets implemented properly.

Age, family size, sex composition and other people related elements are part of demographic environment.Demographic environment relates to
population.Demographics refer to the size, density, distribution and
growth rate of population.Demographics
is a part of the macro environment of the business organization. It is
one of the key factors of the business environment.

A. It is a non-economic activity as a mother cooks food for her children out of love and affection and not with a motive to earn a profit or income.

Bajaj Auto offers "value for money, for years" is an example of mission. A mission statement refers to a firm's primary objectives and the scope of its operations or why does the organization operates and how do they market their product or services. Therefore, the mission of Bajaj Auto is "value for money, for years". 

A vision statement refers to what an organisation wants to be in the upcoming years of its operations. It describes the future view of the company or it terms of operations in future to achieve the organisational goals which it has set in the mission statement. 

b'A mission statement refers to a firm's unique purpose of survival or its primary objectives and the scope of its operations or why does the organization operates and how do they market their product or services. Example: Bajaj Auto offers "value for money, for years" is an example of mission. '

 Business environment refers to the forces, factors and institutions with which the businessman has to deal with in order to achieve its objectives. It has the following nature: 

1. Multifaceted: All the forces and factors of business environment are inter-related to each other due to which it becomes a multifaceted factor for a business. 

2. Dynamic: Business environment is highly flexible and keeps on changing. So it is not static or rigid in nature and it need to be monitored continuously due to its dynamic nature. 

3. Uncertain: As business environment change very fast and continuously, it is very difficult to predict the changes of business environment. Therefore, it is highly uncertain. 

A mission statement refers to a firm's unique purpose of survival or its primary objectives, the ways to achieve those objectives and the scope of its operations and how do they market their product or services to the target market. Therefore, to develop caliber professionals facilitating good corporate governance is the mission of ICS.

Mission is a company's statement that defines the company's business and why the company was started. The statements includes the objectives of the company which usually refers to long tern objectives and the company's plans and strategies in order to achieve those objectives. 

The two work environment which will be good for spawning the new enterprises are finance and research and development as they aim at developing the conduct of business in all dimensions which includes all sectors of the business environment as well. 

Control over access to programs, computer exception reports, and manual checks of computer output represent example of general, application and user controls activities, respectively in the computer environment. All the computer-based activities are related with the computer environment.

Vision of a business refers to the state where the management wants to take the business. It is that period when the business flourish. Therefore, it is the ultimate goal for an organisation as it can be achieved only by achieving the objectives and mission of the business.

Strategy formulation refers to the process of building the mission and vision of the business where the main mission of the business with the major objectives for which the business was started is set up along with the strategies and policies to achieve those objectives and mission.

Therefore, mission and vision does not guide the managements thinking on strategic issues but as to solve these issues the mission and vision of a business are developed.

Licensing regulations is an economic factor as it includes with providing sufficient business license to the corporate units in order to survive in competition that prevails in the market. After, liberalization, many of such license where removed so that many business can flourish in the country. 

The capacity of an organisation defines whether the organisation is able to initiate growth or not. This capacity is build over the years by increasing the retained earnings from the business and using them as growth generating agents later on.

The six M's of internal enviornment are Man, Marketing, Machinery, Management, Money, Miscellaneous, Money.