factors affecting business environment ppt

Demographic factors are an uncontrollable factor in the business environment and extremely important to managers. The availability of physical facilities limits the scope and prospects of business. To summarize what has been said, environmental factors that affect business refer to the physical environment on Earth, including everything from climate and weather to the availability of resources. 2. External Factors Affecting Business Environment Economic Forces The economic environment can have a major impact on businesses by affecting patterns of demand and supply. Business environment includes both specific and general forces. Technology refers to the knowledge of how to do things. On this aspect, William F. Glueck and Lawrence R. Jauch observed, “The environment includes factors outside the firm which can lead to opportunities for or threats to the firm. The external factors affecting a business comprise of such factors as technology, government, and its policies, economic forces and elements, socio-cultural factors, and international factors. Physical factors mean and include geographical factors like weather, climatic conditions etc. Business environment is the sum total of all factors external to the business firm and that greatly influences their functioning. Environmental Factors Affecting Business By Jack Onyisi Abebe Introduction Environmental factors can have an impact on project management even in environments that are relatively stable. The business environment usually offers immense opportunities for exploiting potential market and also poses threats to the firm itself. This thesis investigates factors affecting strategy implementation process. Climate. This category is also sometimes quite appropriately named ‘ecological’. Geopolitics is back. The survival and success of each and every business enterprise depend fully on its economic environment. Companies need to keep a track of relevant economic indicators and monitor them over time. Entrepreneurship is critical to nation development and so entrepreneurs will also need the right environment, resources and people to grow their businesses. Demographic Factors. These critical success factors (CSF) affecting Nigeria business environment are also the same problems confronting any prospective business man or woman from the global arena. Factors that Affect the Economic Environment: (1) Economic Systems: a. Capitalism: A capitalist economy is an economy where the laws of demand and supply operate freely. In the 1990s, adherents of Francis Fukuyama came to believe in the “end of history.” The COVID-19 pandemic and a host of other factors—such as climate change, cyberattacks, and terrorism—have … The internal factors that affect a business are such factors as employees, competitors, customers, suppliers and the culture of the organization.These are factors which business can control. Business leaders need to think through the implications. Demography is the study of people’s vital statistics, such as their age, gender, race and ethnicity, and location. The country who has favorable natural resources develops its economy faster. These factors have a notable influence on business prospects. United States of America and Canada are examples of it. Economic Environment Socio-cultural factors Entrepreneurship Support Systems ... 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