Business environment and its dimension focusing on one dimension with real life case study
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Business enviroment refers to the environmemt within which a business operates. Which means business cannt sustain in vacuum and in order to operate it needs to interact with certain variables around it. Business env can be classified into
1- Micro Env, and
2- Macro Env
Micro Env- supplier, competitors etc. which are controllable by the action of the business, which means the degree to which it may affect the business can be controlled.
Macro Env- These are not under the control of business. Dimensions can be classified into - Economic Env, Socio Cultural Env, Political Env, Technological Env, Legal Env, Geographical Env, Demographical Env.
PRACTICAL CASE EXAMPLE (2)
Socio Cultural Env- In India, which is having majority Hindu population, generally consumption of beef is considered a taboo. As many as 24 states have banned the consumption of beef due to religious belief of the people and to respect the culture.. Now this is the reason why multi National food chain KFC and McDonald which use beef in their products, dont use beef for their operation in India. This is how social environment has affected these businesses.
Political Env - The political env includes the political ideology of the ruling party, their philosophy and the promises on which they are working. When in 1977 Janata Party came to power in India, it forced foreign companies like IBM and Coca Cola out of the country, as their party's ideology was promotion of Swadeshi products. But in the next election they got defeated and Congress party came to power which opened the path for IBN and Coca Cola to the country.
1- Micro Env, and
2- Macro Env
Micro Env- supplier, competitors etc. which are controllable by the action of the business, which means the degree to which it may affect the business can be controlled.
Macro Env- These are not under the control of business. Dimensions can be classified into - Economic Env, Socio Cultural Env, Political Env, Technological Env, Legal Env, Geographical Env, Demographical Env.
PRACTICAL CASE EXAMPLE (2)
Socio Cultural Env- In India, which is having majority Hindu population, generally consumption of beef is considered a taboo. As many as 24 states have banned the consumption of beef due to religious belief of the people and to respect the culture.. Now this is the reason why multi National food chain KFC and McDonald which use beef in their products, dont use beef for their operation in India. This is how social environment has affected these businesses.
Political Env - The political env includes the political ideology of the ruling party, their philosophy and the promises on which they are working. When in 1977 Janata Party came to power in India, it forced foreign companies like IBM and Coca Cola out of the country, as their party's ideology was promotion of Swadeshi products. But in the next election they got defeated and Congress party came to power which opened the path for IBN and Coca Cola to the country.
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