The environmemntal business enironmemnt

The environment is anything beyond the boundary line of the organization

It still can influence activities done in the organisations

The main three environmental influences are

Economic

?political?legal

Social?cultural or fashion

Technological

A strategy that can be used to learn about the environmental influences is known as

P political

E economic

S social?cultural?fashion

T technological

E environmental

L legal

These are all models to asses the environment

The general environment is the macro and the physical environmemnt which is the pollutuion for
instant

The value chain used to identify the activities a business perofrims to see how they add value to a
customers

The political factor

The government policy influences the economic environment

Industry structure and certain operation issues

Operation issues

The idunstry structure and lastly the economic environmemnt are affected by the government policies
In an competitive environment we have

Political

Social

Techonogical and economic activities affecting it

Frame work to see factors affecting macro environment

The frame work of laws

The political instability as well means that long term goals for the business cannot be achieved

Internation trade is subject to law and regulation

Political instability affects long term goals of the business

The economic impacts on th environment

Poter report where the government can affect the enomic structure of an organization

The government can affect the economic activities of an organisations

The government affects economic activities By:the government might inccpurage firms to either
increase or decrease capacity

Capacity expansion e.g in the uk the tax system has offers capital allowance to encourage more
investment in equipment hence the capacity will increase in the number of oragnisations

Demand the government is a major customer might influence daemnad by means of legislation and
lastly tax reliefs and subsidies legislation and tax reliefs

Emerging industries can be promted or damaded by the governments as well

Competition the government purchasing decisions will have an influence on the strenghth of one firm
to another
Entry barriers use of tariffs or quatas to make entering the fild of business harder

Government and supernational might impose policis which keep industry fragmeneted and not in the
hands of only one producer

Capacity expansion

Demand

Emerging businesses

Competioton

Entry boundaries

Regulations

\supranation e.g wto

The adoption oof new products or people must be regulated by the government

In a business the government must adopt thing like medicine for pharmaceuticals

Pnational bodies and suprenations affect some activities of a business

Regulations by government and suprenationals are

Health and saftry

Anti decrimination regulatutions

Product safety

Training and education policies

Workers rights

Social and demogratic factors

Changes in social attributes are meant to change sooner or later this may open up or close the demand
for goods and survices offered
e.g in Health

the environmement

diversity

changes I the population as well

health diversity

population

environment

the social and demograpgics affect the supplu of labour hence policies towards recruiting and managing
human resources

also it affects the buying behaviour of indivials and house hold

businesses must take into account a range of factors when managing its labour forces

what skills we have

what skills are avaible

inrenall and externally

how does education contribute to our labour supplu

how does education contribute to the labour supply

whak skills we have

what skills are avaibla

the impact of social and demogratic changes will impact

impact of bying behaviour

growning materials

employesss heath

declimg maket fir unhealthy products

consumers switchiting to products that conform their beliefs

more flxinle working patterns

more increased markets

people buying products will comply to their beliefs

decline in unhealthy products

employees health

more flexible workimg hours

growing markets

government response to demographic change

supply of labour

buying behaviour as well

either health rate in increasing making large number of old ppel or birthratess are falling this can lead to

government response to demographic change

challenges

the smaller portion will be working while the lager portion will rely on pensions and healthcare from the
government

THEY MAY ASLO BE SOME SHORTAGE OF LABOUR AS THE NUMNER OF PEOPLE WORKING MAY FALL

HOW GOVERNMENT MIGHT TR TO FIX ALL OF THESE

WHEN THERE IS APROBLEM IS DECLINING BIRTHARATE THE GOVERNMENT MAY FACE PROBLEMS LIKE

LESS LABOUR SUPPLY

A SMALL NUMBER OF WORKING PEOPLE BUT A LARGE ON EOF PEOPLE WANTING PENSTIONS AND
HEALTHCARE

HERE HENCE THE GOVERNMENT WILL HAVE TO USE PRODECURES SUCH AS

INCREASING THE PENSION DATE BY ENCOURAGEMENT TO WORK BEYOUND

OFFERING SKILLS AND EDU AND TRAINING TO INCREASE THEIR KNOWELED

LASTLY BY INCREASING THE STATUARY RETIREMNET AGE TO INCREASE LIFE EXPENDANCY

HOWEVER WHERE THERE IS GROWNING BIRTHRATE THE GOVERNMENT MAY NEED TO

MAKE PROPER HOUSES TO ACCOMADATE EVERYONE

HAVE INCREASE TRANING AND EDU SO THEY CAN FIND JOBS

PERSUE POLICIES THAT INCREASE JOB RATE

TECHNOLOGY

INFORMATION SYSTEMS AND INFORMATION TECHNOLOGY HAVE PLAYED A BIG ROL EIN THE
GROWNING OF MORDERN ENVIRONMENT AND INFORMATION SYSTEMS

THE MPACT OF IMFORMATION TECHNOLOGY ON BUSINESS STRUCTURES IS

DOWNSIXING

RESORCING

DELAYERING

THE USE OF TECHNOOGY HAS RESULTED IN DOWN SOURCING

DELAYERING