LINK 8: Business Environment Flashcards
most important aspect of any business. The forces which constitute the business environment are its suppliers, competitors, media, government, customers, economic conditions, investors and multiple other institutions working externally.
business environment
“The sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but the business still depends upon them as they affect the overall performance and sustainability of the business.”
business environment
the operating environment of the firm
micro environment
The main purpose for the existence of most organizations is to satisfy the needs and wants of the customers.
customers
one of the most important factor of production for a company. Human resources are a significant factor in the success (or failure) of a firm
employees
invest in the company, but they are not merely investors. They own shares of the company, so they are actually owners of the company in a way.
shareholders
provide the firm with the materials and factors of production they need to run the business.
suppliers
Every company is going to need media to promote their brand and market their products
media
elements of micro environment
- customers
- competitors
- shareholders
- suppliers
- media
- employees
refers to the removal of these restrictions
liberalization
simply means allowing private players and companies to conduct business.
privatization
growing inter-dependence between countries with regards to business and trade
globalization
describes the company’s position in future and goals respectively
vision and mission statement
defines at what position the company wishes to be in future.
vision statement
tells us about the company’s objectives, goals, and how will they achieve it.
mission statement
