Share on Facebook Business leaders can control aspects of the internal environment that can positively or negatively affect a company's operating and financial results. For example, leaders shape their company's culture, establish the company's organizational structure and create policies that guide employee behavior.
Intellectual stimulation Continuous learning Capitalizing early opportunities: Environment friendly enterprise are the first movers to avail of the existing opportunities of resources to grab the market. These enterprises do not loose emerging opportunities to their competitors. Activating management to changing needs: The knowledge of environmental changes sensitizes the management to make strategy to cope with the emerging problems.
Environmental understanding by the management builds image of the company in the minds of the people.
They feel that the company is sensitive and responsive to their needs and problems. E is said to be image Business invironment.
It divested its computer and air-conditioning business because they could not attain 1st or 2nd position in the business as per their policy. Now they are snickering to out sourcing in India, aircraft engineering, plastic etc.
Strategists can gather qualitative information regarding business environment and utilizing them in formulating effective plants. ITC Hotels foresaw bright opportunities in the travel and tourism industry and started building hotels in India and abroad.
Knowledge of environment changes provides intellectual stimulation to planners and decision-making authorities.
They can do it by paying more attention to people by listening to their problems and suggestion. They can also eliminate procedure complexities in a visible way.
The drastic and dynamic steps will definitely keep the company better placed. Environmental scanning provides continuing broad based learning to is executives. Reliance adopted the policy of decentralization and empowered their managers to close the deal themselves even regarding price.
In managers were require to chat with the proprietress on alternate days for 15 minutes. The process made them so competent that now the managers are required to chat only three times in a month. It shows that continuous learning made the managers competent to take independent decision.Business & Environment → Wal-Mart: For Better or Worse “I want to illustrate the way in which a private company, if it decides to make a difference against really large problems, and in particular environmental problems, can really shift the conversation and make a big difference.”.
Sally enjoyed the business environment at StrexCorp: the clients were friendly and paid on time, the executive board was friendly and responsive to employee needs, and the company was largely successful in the greater market.
Business Environment - by country Summary The world's average Ease of doing business index is equal to 1=most business-friendly regulations Chad's Ease of doing business index is 2 times higher than the average Ease of doing business index of the world.
laws/regulations, politics, economy, technology, demographics, etc.
outside of the control the affect business Competitive environment competitors, suppliers, customers, substitues and/or complements that one might have some control over. Jun 14, · We have entered a new era for MNCs in China that features a tougher policy and regulatory environment and increasing political and trade friction.
Internal environment includes all those factors which influence business and which are present within the business itself.
These factors are usually under the control of business. The study of internal factors is really important for the study of internal environment. These factors are: (i.