- Business environment
An environment can be defined as anything which surrounds a system. Therefore, the business environment is anything which surrounds the business organisation. It affects the decisions, strategies, processes and performance of the business. The micro environment consists of different types of stakeholders - customers, employees, suppliers, board of directors and creditors. The macro environment consists of factors which are beyond the control of the business (STEP) - Social, Technological, Economical and Political.
Changes in the micro environment will directly affect and impinge on the firm's activities. Changes in the macro environment will indirectly affect the business but will nonetheless affect it. For example, a change in legislation such as the smoking ban indirectly affects pubs and restaurants.
ocial environment
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Robert Letada
*Labor market Cultural Environment
The
cultural environment , or even cross cultural environment, may place new or certain demands on a multinational enterprise in countries with several cultures.Technological environment
Technological environment hold new technological innovation, new products, the state of technology, the utilization of technology for maximum inputs and outputs, the obsolescence of technology and the dynamic changes that frequently occur in technologies which enable firms to get a competitive advantage.fact|date=October 2007
Availability of
electric power ,natural gas ,drinking water , sewage collection,telecommunication s,road s andhighway s, postal service, garbage collection, andpublic transport .Economic environment
The economic environment consists of the demand dynamics, supply situation, pricing factors, degree of competitiveness, and impact of profitability. It includes the fiscal policy, monetary policy and the taxation policy, the FDI norms, the investment criterion and financing decisions.fact|date=October 2007
* Global economy (Macroeconomics )
* Local economy (Microeconomics )
*Monetary policy POLITICAL ENVIRONMENT"Italic text"
The political environment includes regulatory burden and
red tape ,tax es, levels ofpolitical corruption ,public works services, labor market regulation, policy predictability,property rights,contract enforcement, regulations controlling startup andbankruptcy , competition law, and entry to finance and infrastructure markets. [cite web |title=Business Environment - Policies to stimulate the private sector
The legal environment Plays a very important role. The laws of the country, the judicial system, and the laws which affect business are important. For example, there might be a sudden prohibition of tobacco.
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