Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

External environment

•
•
B
BhushanPhirke

This document provides a summary of an MBA student's presentation on external environment. The presentation defines external environment as factors outside an organization that provide opportunities or pose threats. It classifies the external environment into micro and macro categories. Micro environment includes suppliers, customers, competitors and financial institutions that directly impact business. Macro environment includes broader factors like economic, political, demographic, socio-cultural, technological and natural elements that businesses cannot control. Specific examples of factors in each category and their influence on organizations are discussed.

1 of 12
Download to read offline
JSPM’s Rajarshi Shahu College of Engineering Tathawade , Pune:33 Presentation on Topic: “ External Environment ” Department of MBA Date: 15.04.2020 Presented By : Name of student: Bhushan Vijay Phirke Roll Number: 191415 Subject : Industry Analysis and Desk Research (MBA-Sem II)
External Environment External Environment
What is External environment? • Meaning: Environment of any Organization is the aggregate of all the conditions, events and influences that surrounds and affect it. • The combination of Internal and External factors that influence a company’s business and operating situation.
Types of Environment 1. Internal environment 2. External environment  Micro environment  Macro environment
External Environment  Factors outside the organization which provide opportunities or pose threats to the organization  Factors that can impact the ability of a business or investment to achieve its strategic goals and objectives.  Uncontrollable factors  Classified into two categories  Micro  Macro
Micro Environment  Refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away Types of Factors 1. Suppliers 2. Customers 3. Marketing Intermediaries 4. Competitors 5. Financial Intermediaries
Micro Environment SUPPLIERS supply materials, machine, service and information used to produce its products and services. FINANCIAL INSTITUTION the capital resources that available for the firm CUSTOMERS Customers are the persons who buy goods from company. COMPETITOR Competitors are those who also sell same product as the company or business.
Macro Environment  Refers to the external factors which affects company and its business and there is no control of company on these factors. Types of Factors  Economic  Non Economic 1. Political 2. Demographic 3. Socio-Cultural 4. Technological 5. Natural
Macro Environment • ECONOMIC • The economic environment constitutes of economic conditions, economic policies, and the economic system that is important to external factors of business. • Economic environment refers to the nature and direction of the economy within which business organization are to operate. • NON-ECONOMIC • Political and Legal Forces Refers to the political, government and legal environment. It has close relationship with the economic system and economic policy. • This refers to set of laws, regulations, which influence the business organizations and their operations
Macro Environment Socio-Cultural Forces These includes people’s attitude to work and wealth, ethical issues, role of family, marriage, religion and education and the social responsibilities of business Technological Forces the application of knowledge base which science provides. It is a well established fact that information and communication technology has revolutionized business operations Political and Legal Forces Refers to the political, government and legal environment. This refers to set of laws, regulations, which influence the business organizations and their operations.
Conclusion • External Environment:  Differing external elements affects different strategies at different times and with varying strengths  Only certainty is that the effect of remote and operating environment will be uncertain until a strategy is implemented.
Thank You.. Questions??

More Related Content

External environment

  • 1. JSPM’s Rajarshi Shahu College of Engineering Tathawade , Pune:33 Presentation on Topic: “ External Environment ” Department of MBA Date: 15.04.2020 Presented By : Name of student: Bhushan Vijay Phirke Roll Number: 191415 Subject : Industry Analysis and Desk Research (MBA-Sem II)
  • 3. What is External environment? • Meaning: Environment of any Organization is the aggregate of all the conditions, events and influences that surrounds and affect it. • The combination of Internal and External factors that influence a company’s business and operating situation.
  • 4. Types of Environment 1. Internal environment 2. External environment  Micro environment  Macro environment
  • 5. External Environment  Factors outside the organization which provide opportunities or pose threats to the organization  Factors that can impact the ability of a business or investment to achieve its strategic goals and objectives.  Uncontrollable factors  Classified into two categories  Micro  Macro
  • 6. Micro Environment  Refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away Types of Factors 1. Suppliers 2. Customers 3. Marketing Intermediaries 4. Competitors 5. Financial Intermediaries
  • 7. Micro Environment SUPPLIERS supply materials, machine, service and information used to produce its products and services. FINANCIAL INSTITUTION the capital resources that available for the firm CUSTOMERS Customers are the persons who buy goods from company. COMPETITOR Competitors are those who also sell same product as the company or business.
  • 8. Macro Environment  Refers to the external factors which affects company and its business and there is no control of company on these factors. Types of Factors  Economic  Non Economic 1. Political 2. Demographic 3. Socio-Cultural 4. Technological 5. Natural
  • 9. Macro Environment • ECONOMIC • The economic environment constitutes of economic conditions, economic policies, and the economic system that is important to external factors of business. • Economic environment refers to the nature and direction of the economy within which business organization are to operate. • NON-ECONOMIC • Political and Legal Forces Refers to the political, government and legal environment. It has close relationship with the economic system and economic policy. • This refers to set of laws, regulations, which influence the business organizations and their operations
  • 10. Macro Environment Socio-Cultural Forces These includes people’s attitude to work and wealth, ethical issues, role of family, marriage, religion and education and the social responsibilities of business Technological Forces the application of knowledge base which science provides. It is a well established fact that information and communication technology has revolutionized business operations Political and Legal Forces Refers to the political, government and legal environment. This refers to set of laws, regulations, which influence the business organizations and their operations.
  • 11. Conclusion • External Environment:  Differing external elements affects different strategies at different times and with varying strengths  Only certainty is that the effect of remote and operating environment will be uncertain until a strategy is implemented.