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BUSINESS ENVIRONMENT

DOMESTIC
NON ECONOMIC
MACROECONOMIC
ENVIRONMENT
ENVIRONMENT

INTERNAL PUBLIC
ENVIRONMENT RELATIONS
ENVIRONMENT

THE
SECTORAL
INTERNATIONAL
ENVIRONMENT
ENVIRONMENT
INTERNAL ENVIRONMENT
Miscellaneous
Factors
Value
System Company
Image &
Brand
Equity
Mission INTERNAL
& ENVIRONMENT
Objectives Human
Resources

Management
Structure & Internal
Nature Power
Relationship
Choice of business

Mission & Objectives


Value Has a bearing on
System
Business Policies

Business Practices
Business domain of the
company

Priorities
Mission Guides
&
Objectives Direction of Development

Business philosophy
Organization structure

Important
Management Composition of Board factors
Structure & influencing
Nature business
Professionalism of decisions
Management
SUPPORT TO
TOP
MANAGEMENT

INFLUENCE
Internal
DECISIONS
Power
AND THEIR
Relationship
IMPLEMENTATION

RELATIONSHIP
BETWEEN
BOARD
MEMBERS
Skill

Quality Contribute to
Human Characteristics the strengths &
Resources weaknesses of
an organization
Morale

Commitment
Raising Finance

Forming joint ventures

Other alliances
Company
Matters when
Image &
Brand Soliciting market
Equity intermediaries

Entering purchase/sale
contract

Launching products
Physical assets
&
facilities Contribute to
business
decisions
R & D and
Miscellaneous technological
Factors capabilities
Contribute to
success/failure of
Marketing business
resources

Financial
factors
INTERNAL ENVIRONMENT

Determinants of internal environment of an organization

…….. Mission & vision of an organization


……. Management philosophy & strategy
……. Industrial relations
…….. Corporate culture and values
…….. Line & staff relations
…….. Governance standards & codes
…….. Quality control system
…….. Team spirit among employees
…….. Work culture & socio-
economic background ……..
Job design & coordination
…….. Quality of internal communications
…….. Compensation system & career progression of
employees …….. Control system of employees
Major pollutants of internal environment

…….. Conflict between different owner groups

…….. Conflicts between workers & managers

…….. Inter-departmental conflicts and mistrust


…….. Unhealthy competition and conflict between employees

…….. Office politics & discrimination at work place

……. Absenteeism & moonlighting

…….. Corruption & money laundering

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