Rafay Rafi

MBA 2nd Semester

Legal Environment for business in Pakistan
Assignment I
Submitted to: Imran Arshad
BUSINESS:

Is an organization where you fulfill needs and wants of people requirement via buy and sell and

earn profit.

MANAGEMENT:

Management is the place or organization where mange and utilize resources.

OPERATIONS:

All the necessary action to running company in better way for achieve high performance to earn

profit.

RESEARCH AND DEVELOPMENT:

It is process that organization undertake to improve their old process, policies, services and

innovate to work toward improvement.

In R&D process many companies launching their new offers and products as per market needs

and requirements.

MARKETING & SALES:

Two major function of organization for promote product and increasing company sales and earn

more profit.

FINANCE:

Its department for recording and maintaining the data under organization policies for acquiring

and transferring the money, keep record of every single transaction and raising and managing

funds of business organization.

THE ECONOMIC ENVIROMENT:

Is based and focus to commercial and consumer behavior. In economic environment is depend

in external factors in the market place and economy.

These factors are effected business environment either its internal or external. These factor of

economic environment is based in different thing or people like, weather, farmer and price of

fertilizer playing important role in this factor.

The economic environment based on two factors.

 Micro environment

 Macro environment

Micro Environment:

Is based on individual organization or any individual consumer level.

Micro environment factors are not effect whole economy of country, they influence internal
matters and challenges within organization like.

 Supply.
 Suppliers.
 Competitors.
 Demand.
 Market size.
 It’s also effect supplies distribution chain
Macro Environment:

Is based on external factors its opposite form micro and it can effect whole country economy

 Political issues
 Natural disaster
 Inflation
 GDP
 Exchange rates
 Global crisis
 Taxes
 Security issues.
 Global climate issues

Business organization can’t control macro environment factors its un control able its only can
manage according to marketing plan and strategy or future forecast assessment.

LEGAL ENVIROMENT:

The legal environment of business is based on simple compliance with the law. Its guide line to
understand legal frame work in which business operates so that have maintained and achieved
compliance. In this law so many new organization and business players are come to understand
legal business structure and its legal concepts under business law like trade laws and regulations,
compliance issue related to sales and product liability, contracts.

COMPETETIVE ENVIORMENT:

Is external system in which business compete and function, It base on two factors.’

1. Direct Competitor

2. In Direct Competitor

Direct Competitor: are selling same kind of services or products for examples Mon salwa is

direct competitor of K&Ns.

In Direct Competitor: is business are competing to sell different product or services like in

Ramadan soft drinks and syrups companies are in directing compete with each either product is

looks quietly different from each other.

TECHNOLOGICAL ENVIORMENT: In this business human want to make change in

technology product and develop with their own style for easy try to cut off maximum old

testimonial reservation during work. It’s also consider a revolutionary change like people move

from Kodak to Sony G shot digital cam and now days preferred mobile as camera.

SOCIAL ENVIORMENT:

Is based on society belief, behaviors, cultures. Custom and practices, its effect the internal and

external society environment, every society develop their own beliefs and culture behaviors and

its can be contrasted with natural environment, in Hong Kong, CHINA, SINGAPORE language

are similar but society behaviors and practices is totally different.

GLOBAL ENVIROMENT:

In global environment organization and business firms will effects form international markets

and demands of consumer and suppliers also. Like Pakistan want to produce herbal pineapple

candies and deserts but Pineapple not produce in Pakistan major market shareholder is Malaysia

and Thailand, its sell to local and international buyers is dependent on the global environment,

which consists of the international interactions out of a company's control that influence how a

business operate.