BUSINESS ENVIRONMENT

PART 1 :
AN OVERVIEW OF
BUSINESS ENVIRONMENT

Chapter 1
A GLIMPSE OF BUSINESS
ENVIRONMENT
 Chapter 1
A Glimpse of Business
Environment

Meaning of Business Environment

 Business Environment consists of all those factors that have a

bearing on the business, such as the strengths, weaknesses, internal
power relationships and orientations of the organisation;
government policies and regulations; nature of the economy and
economic conditions; socio-cultural factors; demographic trends;
natural factors; and, global trends and cross-border developments.

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 1
A Glimpse of Business
Environment

Factors Influencing Business Decision

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 1
A Glimpse of Business
Environment
Types of Environment

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 1
A Glimpse of Business
Environment

Forces Driving Industry Competition

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 1
A Glimpse of Business
Environment

The Common Entry Barriers

1. Government Policy
2. Economies of Scale
3. Cost Disadvantages Independent of Scale
4. Product Differentiation
5. Monopoly Elements
6. Capital Requirements

Business Environment
Himalaya Publishing House Francis Cherunilam
 Chapter 1
A Glimpse of Business
Environment

Strategic Management Process

Business Environment
Himalaya Publishing House Francis Cherunilam