Explain market environment with internal and external factor
Answers
What is the Marketing Environment? Marketing Environment is the combination of external and internal factors and forces which affect the company's ability to establish a relationship and serve its customers. ... The internal environment is company specific and includes owners, workers, machines, materials etc.
Answer: Business environment is also known as market environment which is the aggregate of all forces that lies outside a business enterprise and influences the functioning of a business.
Explanation:
Internal factors :
Image of the company : The image of a company plays an important role in raising finance, choosing dealers and suppliers, entering foreign market etc.
The composition of the top management structure of the company which has important decision making capability on its business.
External factors :
The competitors plays an important role. A company may have both direct, indirect competitors. A direct competitor is the one selling same product. Indirect competitor is the firm vying from discretionary income.
The shareholder, debenture holders and the bank which provides finance to a firm plays an important factor for making policies, financial capacity for a company.