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What are the major aspect of the external environment in business firms?
Wiki User
∙ 10y ago
in business firm business man can earn more information about the goods n earn profit
Wiki User
∙ 10y ago
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Types of global business environment?
There are many types of business environments. these can include competitor, technological, supplier, and socio-economic. These are the different situations that a business will come up against.
Discus and describe the elements of the external environment and how they can be used to determine the average expected profitability in an industry?
external environment is environment for businesses where customers from different places will come together in other to buy a particular product. Elements of external environment may be households,firms and the government.
Practical problems firms face due to the changing business environment with regards to reward policies?
What are the practical and theoretical problems firms face due to the changing business environment with reguards to reward policies
What has the author F Trau written?
F. Trau has written: 'The macroeconomic environment and the size pattern of business firms'
What is the environment of business firms?
These include customers,competitors, suppliers, government, and the social, political, legal and technological factors etc.
Disadvantages of long term external finance?
If the business is making profits, a percentage of it's profit has to be distributed to shareholders and other firms where it has gotten finance from.
Why is country analysis considered a vital diagnostic tool by companies going global?
A manager's ability to build profitable firms depends upon the business environment within which firms interact. This note presents a framework to help understand, anticipate, and perhaps foster changes in the business environment. Describes building a picture of the business environment as country analysis. The country analysis framework has three interdependent components of strategy, context, and performance.
The definition for global environment?
The ICFAI center for management research state that the global business environment can be defined as the environment in different sovereign countries, with factors exogenous to the home environment of the organization, influencing decision making on resource use and capabilities. This includes the social, political, economic, regulatory, tax, cultural, legal, and technological environments.The political environment in a country influences the legislations and government rules and regulations under which a foreign firm operates. The economic environment relates to all the factors that contribute to a country's attractiveness for foreign businesses.Every country in the world follows its own system of law. A foreign company operating in that particular country has to abide with its system of law as long as it is operating in that country. The technological environment comprises factors related to the materials and machines used in manufacturing goods and services. Receptivity of organizations to new technology and adoption of new technology by consumers influence decisions made in an organization.As firms have no control over the external environment, their success depends upon how well they adapt to the external environment. A firm's ability to design and adjust its internal variables to take advantage of opportunities offered by the external environment, and its ability to control threats posed by the same environment, determine its success.
When external costs are generated by firms the government should?
stop
What is the definition of competitive environment?
The competitive environment of a business is the part of a company's external environment that consists of other firms trying to win customers in the same market. It is the segment of the industry that includes all immediate rivals.
Who own the factor of production?
Business firms own the factors of production.
What is strategic change?
Strategic Change:Strategic Change means changing the organizational Vision, Mission, Objectives and ofcourse the adopted strategy to achieve those objectives.Strategic change is defined as " changes in the content of a firm's strategy as defined by its scope, resource deployments, competitive advantages, and synergy"(Hofer and Schendel 1978)Strategic change is defined as a difference in the form, qualiity, or state over time in organization's alignment with its external environment (Rajagopalan & Spreitzer, 1997 Van de Ven & Pool, 1995).Considering the definition of strategic change, strategic change could be affected by the states of firms and their external environments. Because the performance of firms might dependent on the fit between firms and their external environments, the appearances of novel opportunities and threats in the external environments, in other words, the change of external environments, require firms to adapt to the external environments again; as a result, firms would change their strategy in response to the environmental changes. The states of firms will also affect the occurrence of strategic change. For example, firms tend to adopt new strategies in the face of financial distress for the purpose of breaking the critical situations. Additionally, organizations would possess structural inertia that they tend to keep their previous structure and strategy (Hannan & Freeman, 1984).However, the former research on strategic change has not shown expected empirical results. To explain the unexpected empirical results, Rajagopalan and Spreitzer (1997)suggests that the external environment could not be constantly decided; it would be decided depending on the decision maker's cognition of external environment. Therefore, the occurrence of strategic change would be related to their cognition of external environment.Based on the argument of Rajagopalan and Spreitzer (1997), the factors which affect decision maker's cognition of external environment would affect strategic change.
