KINDS OF BUSINESS ENVIRONMENT

BUSINESS ENVIRONMENT
Comes from : Business Environment Def - set of conditions : Social, Legal, Economical, Political or Institutional uncontrollable in nature affects the functioning of organization.

COMPONENTS
Internal

External - Government and Legal factors, GeoPhysical Factors, Political Factors, SocioCultural Factors, Demo-Graphical factors etc

INTERNAL ENVIRONMENT
MAN

MATERIAL

MACHINERY
MONEY MANAGEMENT

EXTERNAL ENVIRONMENT
2 TYPES :
Micro /Operating : Suppliers Customers, Market Intermediaries, Competitors Public.

- Macro /General
Economic Environment: - complex and dynamic in nature , keeps on changing with the change in policies or political situations. 3 elements: (i) Economic Conditions of Public (ii) Economic Policies of the country (iii)Economic System (iv) Other Economic Factors: Infrastructural Facilities, Banking, Insurance companies, money markets, capital markets etc.

 Non Economic Environment :

(i) (ii) (iii) (iv) (v) (vi) Political Environment Socio-Cultural Environment Technological Environment Natural Environment Demographic Environment International Environment

Characteristics: Business environment is compound in nature. Business environment is constantly changing process. Business environment is different for different business units. It has both long term and short term impact. Unlimited influence of external environment factors. It is very uncertain. Inter-related components. It includes both internal and external environment.

CONTROLLABLE ENVIRONMENT (INTERNAL )

This Environment focuses on the attributes that add up to structure of the organization, the reason for its existence. They can be controlled in the sense that the organization dictates the quantity and how much to be used depending on their available resources and therefore differ from different organizations. The five attributes are the major make-up of the organization and without them, it is dormant to all its operations.

 Labor points out the human resources, the actual workers who provide physical or intellectual contribution to the everyday activities within the organization. Raw Material is the physical bits and pieces that are provided by suppliers to manufacture the companys end products. Equipment refers to the machinery or devices that play a role into converting the raw materials to finished end products. Capital is the cash flow or the monetary aid the organization needs to acquire and achieve its goals, it is the most important because it keeps the other attributes active and functional. Last but not least, the Entrepreneur who are directly involved in the organizations operations.

CHANGING NATURE OF ORGANIZATION

Nokia is a public limited organization that is privately owned by group of Individuals. Such organizations consist of seven shareholders but of a large number of investors. They can have two directors who can retire at age of seventy. Nokia practices a free trade shares with investors who can contribute capital into the organization so there is easy transfer of shares but too many stakeholders may lead to weak control of the business.

INDIVIDUAL AT WORK
As far as Nokia is concerned, the physical character is not much of criteria to be strict about;despite the gender, age, body size and their race as long as the employees perform their jobs well. Nokia branch offices set up events to embrace the celebrations of different cultures from respective nations just to make them feel at home. However, Nokia takes note on Employees ability and personality. Different tasks and department require special abilities that are not equal thus not every employee can possess. For example the R&D department will require employees who are creative and innovative; likewise, the Logistic department will require ones who are good at computing and analyzing vast figures.

CONCLUSION
Nokia gives importance to employees and its resources in terms of knowledge ability etc .It believes that strong internal structure will help in handling complex external environment .