These include customers, competitors, suppliers, government, and the social, political, legal and technological factors etc. While some of these factors or forces may have direct influence over the business firm, others may operate indirectly. Thus, business environment may be defined as the total surroundings, which have a direct or indirect bearing on the functioning of business. It may also be defined as the set of external factors, such as economic factors, social factors, political and legal factors, demographic factors, and technical factors etc., which are uncontrollable in nature and affects the business
Cultural environment shapes and affects the behavior of Target Corporation in a direct manner. Target Corporation specifies that it affects the organization’s performance to recover from the opposing conditions as faced by the company. For example, Target
EXTERNAL FACTORS – The factors that affect the organization or business which are outside the organizations structure are known as External Factors. These cannot be controlled by the organization apart from keeping precautions planned in case of the same. They consist of Opportunities and Threats which indicates it can be positive or negative as well. External Factors can be of two types, Specific or General. Customers, Competitors, Suppliers and Public Pressure Groups are specific factors that have a direct and profound impact on the business.
PEST analysis is a strategic tool to learn about the organization’s working environment and the factors that could affect it. A PEST analysis including legal and environmental parameter is called a PESTEL analysis. Political Political factors can influence an organization’s activities in many ways. It can either be advantageous for the company or there can be levies and duties on the company. Government’s intervention affects the working of the organization.
PEST Analysis is a tool that helps to analyse the environment and constraints that are placed on developing and implementing an e-business strategy from outside the business. It is an acronym for Political Economical Social and Technological factors. 2.2.1 Political The major political factors affecting H&M are restrictions on imports and exports and relocation of production facilities since the company has chain stores in different countries. There is also a restriction on shipment of goods which is a concern for H&M. Relocation of manufacturing and outsourcing continues to be a contentious issue as companies seeks to maintain profit margins and reduce costs as well as receive incentives to locate production in specific areas.
In business ethics, systemic issues are where ethical questions are raised about the economic, political and other social systems within the business operates. In other words, these systemic issues are also identified as the macro level of business ethics. A company’s operating standards and policies can be influenced by the factors mentioned in the macro level. The owners of the company must be conscious of how these factors affect and impact the market. The corporate issues of business ethics are where ethical questions are raised about the particular company.
Environmental factors impact each part of business, be it its tendency, its area, the costs of items, the conveyance framework, or the work force arrangements. Henceforth it is critical to find out about the different parts of the business environment, which comprises of the financial perspective, the socio-social viewpoints, the political structure, the legal aspects and the technological viewpoints. Business environment is the whole of all external and internal elements that impact a business. You ought to remember that external components and internal elements can impact one another and cooperate to influence a business. For instance, a wellbeing and security regulation is an external variable that impacts the internal environment of business operations.
For instance, selective promotion, beguiling advertising, as well as market price war form the major factors that of the exercises that can negatively affect the company 's association with different partners. In light of this, PharmaCARE has a few moral issues. Notably, these factors can be classified into various categories. These include marketing, advertising, intellectual property rights, and lastly safety ethical considerations. It is important to note that in the marketing world and business in general, intellectual property rights form the rife in marketing in general.
For change to be successful, the implementation efforts need to fit the organizational context. Following is a context sensitive approach for Amana Takaful was developed by Julia Balogun and Veronica (2002) Time Concerned with long term strategic development Scope The change through outsourcing will affect certain departments of Amana, and as the departmental functions are interdependent will affect the company as whole. The outcome here is to realign the resources to support competitive advantage Perseverance All component pertaining to the core competencies such as the systems, structures and hierarchies, databases should be protected Uniformity There is a relative homogeneity in terms of values and attitudes. Staff groups mostly identify each other as separate divisions which has teams as sub cultures. For example: the sales department of Amana has brokering unit, key account management & direct sales staff.