Organization and Management

Organization and Management

Week 3 Lesson 3: The Role of Business in the Environment, and how the Environment

Affects the Firm 

Open Ended

In your own words what is BUSINESS?

BUSINESS

Profit-seeking activities and enterprises that provide goods and services necessary to an economic system

Poll

Do you think all business gain profit?

• Yes because the business owner invest money and capital.

• No because there are different factors affecting the business

Business Environment

Business Environment

refers to any kind of internal or external

forces which have an effect on the functioning of the business in a positive or

negative way. The environment may affect the business to the extent that there may be a need to modify or revamp the entire business. Identifying those factors helps the business to define its operations and to determine its success.

Open Ended

What do you think are the business environment factors?

Internal Environment

- consists of elements that have a direct impact on the business operations. These elements can be directly controlled and can be modified by the firm   itself to adapt accordingly in the dynamic business environment.

    The internal environment offers strengths and weaknesses

Multiple Select

What do you think is considered as Internal Factors?

• organizational structure

• mission and objectives

• human resources

• physical resources and technological capabilities

• all of the above

External Environment

- consists of factors that have indirect but significant influence on the operation of the business.

Multiple Select

The external environment brings opportunities and threats.

• True

• False

Microenvironment

refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight

away. It is associated with a small area in which the firm functions

Multiple Select

Which of the following is not considered as factors of MICROENVIRONMENT?

• organization

• suppliers

• Competitors

• customer

• building

Macroenvironment

constitutes those outside forces that are not under the control of the firm but have a powerful impact on the firm’s functioning.

Multiple Select

Which of the following is considered as factors of macroenvironment

• political

• technological

• social

• economical

Environmental Analysis or Environmental Scanning 

is described as the process which examines all the components, internal or external, that has an influence on the performance of the organization. 

Poll

Environmental Analysis is important in the business to determine potential growth and success.

• Yes

• No

• Neither yes or No

SWOT Analysis

SWOT Analysis is a strategic management tool that assists an enterprise in discerning their internal Strengths, and Weaknesses, and external Opportunities, and Threats, to determine its competitive position in the market.

Multiple Choice

In SWOT analysis S means__________________

• Super

• Safety

• Strength

Multiple Select

SWOT analysis means

• Strength, Weaknesses, Opportunities, Threats

• Safety, water, object, traffic

• Strength, waiting, opportunities, timing

Poll

Can we use SWOT analysis for the success of the business?

• Yes

• No

A SWOT analysis focuses on the four elements of the acronym, allowing companies to identify the forces influencing a strategy, action or initiative. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized

PEST analysis

PEST Analysis (political, economic, social and technological) is a management method whereby an organization can assess major external factors that influence its operation in order to become more competitive in the market

Poll

Do you think PEST analysis is important?

• Yes

• No

AIMS of PEST analysis

• 1. Find out the current external factors affecting an organization.

  2. Identify the external factors that may change in the future.

  3. Exploit the changes (opportunities) or defend against them (threats) better than competitors would      

       do.

Open Ended

What is the difference between micro environment and macro environment in business?

Open Ended

What have you learned for today?

Congrats Grade 11 ABM