Question

Question 4 In 21" century, there are many challenges that affect the operation of business environment. State ANY FOUR of them and explain in detail. Write not less than 400 words. (25 marks)

Answer 1

Environmental in Huences on Business Business functions as a part of broader environment. The Inputs in the form of human, financial and other related issues are possible in the business which are drawn from environment The business converts these resources through various processes into outputs of products and lor services. Micro and Macro Environment Micro - environment as related to periphery of organisation, It influences organisation directly. Where au Macro - environment has broader dimensions. Micro - Environment factors that affect the Operation L of business environment Some of the factors that affect are as fouows 1. Consumers -> Customers are the people who pay the money to acquire an Organizatfons products. Consumer Occupies the central position in the marketing environment. The marketer has to closely monitor and analyse changes in taste and preferences of consumer 2. Competitors - Competitors are the other business entities that compete for resources as well as markets A Steeded Of competitive Scenario is essential for the marketer, mainlys the threats that artse from competitors.

3. Market y Market is to be studied in terms of its potential size, growth prospect and also its attractiven The marketey should study the trends, developments and key success factors of the market. Macro - Environment factors that affect Operation of business environment Some of the factors that affect are as follows: 1. Demographic Environment - The term "demographics denotes Characteristics of population in an area, district, country or world. Some of demographie factors have great impact on bullness. factors like general age proffle , Sex ratio, income, education affect business with different magnitude. 2. Technological Environment -> Technology can act as both Oppustenitel and threat to business. It can act alt as oppurtunity as business can take advantage of adopting techonological innovations to gain the Strategic advantage and can act all threat of Organisation cannot adopt the advantage 3. Global Environment -> Globalisation refers to process of integration of world into one huge market. At the company level, it means ta) the company commits itself heavily with several manufacturing locations around the world and that offers products in several diversified industiles. 16) It also means ability to compete in domestie marrets with foreign competitors,