Business Environment Definition
1.1
It is very true that for any organization to be successful or for its survival in this very difficult industry is for the environment that it is operating to be fully developed to guarantee success. There are various definitions to ‘the business environment’. Where we can start to define what a business environment is, is to first of all define what a business is. Business can be defined as an operation which all the different activities connected with trade, banking, production, finance, advertising, insurance, packaging, energy and many others.
The second part of being able to define what a business environment is to also define what an environment is as well. What this refers to is all the external forces which have an impact on the
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When being compared to a firm’s task environment, the impact of the macro environment variables is less direct and the organization has a more limited impact on these elements of the environment. These variables include socio cultural, technological, political, economic and international. The macro environment consists of forces that originate outside of an organization and generally cannot be altered by actions of the organization. In other words, a firm may be influenced by changes within this element of its environment, but cannot itself influence the …show more content…
“Strategically relevant activities” refers to the different functions and the decision making which needs to be done when it comes to the functions to be able to form a strategic perspective within the organization.
The value chain enables the organization to determine their significant activities while also determining their ability to create customer value in the process (Nieman & Bennett 2002:14). This customer focus is supported by a further definition of the value chain, namely that it is “a business system which creates end-user satisfaction and realizes the objectives of other member stakeholders” (Walters & Lancaster 2000:162).
These are the primary activities which can be identified in the value
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