Importance of the micro economic environment to business organisations

Materials Markets The internal environment is under the control of the marketer and can be changed with the changing external environment. The external environment is of two types: HRIS can enable the system and OFFER -ability to collect qualtitative informations -ability to collect quantitative informations -ability to handle wide range of functionalities -ability to store -ability to track -ability to monitor -ability to track variances -ability to provide trends etc etc.

Maintenance of political stability is an important condition of business, development. Market intermediaries include parties involved in distributing the product or service of the organisation.

They can influence the performance and day to day operations of the company, but for a short term only. Non-economic environment is as important as economic environment for influencing the business activity of the country.

Factors Affecting the Economic Environment of Business

If an industry lacks competition, you might not find enough demand to succeed in the long run. Legal factors There is a law concerning every aspect of the business, this is order to provide safety and security. The skill, quality, morale and attitude of the work force in the business organization contribute a lot towards the strength or weakness of the organization.

This piece of the Balanced Scorecard provides answers to queries about the effectiveness and efficiency in running HR processes that are vital to the organization.

Difference Between Micro and Macro Environment

Technological Environment The technological environment constitutes innovation, research and development in technology, technological alternatives, innovation inducements also technological barriers to smooth operation. Company owners must be able to correctly recognize the new developments which will help owners to see the development in their company performance.

It would now be better to classify some of the important constituent elements of economic environment of business in the following manner: Micro Environment The micro component of the external environment is also known as the task environment.

The legislature take decision on a particular course of action, the executive implements those decisions through government agencies and the judiciary serves as a watch-dog for ensuring public interest in all the activities of legislature and executive.

Statement of the Business Mission b. Customers Customers have the most direct microeconomic impact on a business. Size of population, growth rate of population, age-composition etc. At this stage of the selection process you are expected to make a presentation to show your understanding of the macro-economic environment in the domestic context of the country where the business has its head office.

Thus the business environment in the country also needs a natural support which includes suitable climate, balanced weather, suitable natural environment, i. Traditional and backward economies will have comparatively static environment.

Analyse the influences of the following macro-environmental forces to the proposed business: Total economic environment is consisting of prevailing economic system, basic economic philosophy and economic policies of the government, stages of economic development, agricultural and industrial production, infrastructure, planning process, trade cycles, national income, savings, population, money supply and price level.

Guidelines for assessors The assignments submitted by students must achieve the learning outcomes and meet the standards specified by the assessment criteria for the unit. Some factors which contribute towards the non-economic environment are as follows.

By taking on investors, you share the risks of operating and often gain support and expertise. While in a mixed economic structure both the private sector enterprises and public sector enterprise co-exist side by side. The legislation also provide assistance to the companies in the high-tech sector of the economy.

The deficit was due to the fact that Pick and Carry could not compete with the strongly established grocery shops in Auckland City specifically New World and Countdown.

The system analyst, with user approval, specifies "what" the system should do to make this MAC branch more popular among people. The business unit will not have any control over these factors.

As a company operator, understanding the core microeconomic factors affecting your business helps in planning and preparation, as well as long-term business strategy development.

Accordingly, demographic factors like, rise and growth rate of population, age and sex composition of population, rural urban distribution of population, educational levels, religion, ethnicity, caste, language etc. Demographic factors Demographics are considered as the easily measurable elements of the general environment.

Macro Environment The macro component of the marketing environment is also known as the broad environment. Demographic Environment The demographic environment is made up of the people who constitute the market.The Micro Economics Environment To Business Organisation Economics Essay.

Print Reference this. Published: 23rd March, ANALYSIS OF BUSINESS OBJECTIVES AND BUSINESS BEHAVIOUR IN THE ECONOMIC CONTEXT. An analysis of the impact of the macroeconomic environment of business organisations.

Economic environment economic environment consists of economic factors that influence the business in a country. These factors include gross national product, corporate profits, inflation rate, employment, balance of payments, interest rates consumer income etc. Discuss the importance of environmental analysis in managing business organisations.

An environmental analysis in plays an essential role in business management by providing possible opportunities or threats outside the company in its external environment. Importance Of The Micro Economic Environment To Business Organisations. Am going to be discussing the importance of international trade in our modern, commercial world as producers in various nations make profit from market expansion than limited selling within their own region, the importance economic integrations between different state, nation and how the importance of global.

- Definition, Importance & Factors The economic environment in which a business operates has a great influence upon it. In this lesson, you'll learn about the economic environment in business.

Jun 26,  · Your workers produce, sell or service the goods and service that drive your business. The availability of qualified, motivated employees for your business type is vital to economic success.

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Importance of the micro economic environment to business organisations
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