The Impact Of Business Environments On Business Organizations Commerce Essay Example

country.

In general, the environment encompasses various elements such as air quality, water sources, and surrounding business, social, and educational infrastructure at local, state, and national levels. In a business context, the environment refers to both internal and external forces affecting an organization. Managers must understand these forces and their impact on the organization. They should identify, evaluate, and respond to external environmental forces accordingly.

Often, these forces are outside the control of an organization and its directors. Therefore, an organization must incorporate environmental factors as inputs in its planning and prediction models. In fact, certain large organizations, such as Public Sector Oil Companies in India, may even make up a significant portion of the business environment.

An organization exists within a larger framework known as the external environment, which presents both opportunities and threats to the organization. This external environment consists of numerous complex, rapidly changing establishments and forces that significantly impact the organization's ability to serve its customers. While an organization cannot control these external forces, it can influence or be affected by them. Therefore, it is crucial for organizations to understand the environmental conditions, as they directly interact with strategic decision-making processes. Notably, the external environment greatly influences marketing decisions, thus successful organizations regularly analyze their external environment to effectively respond to unmet market needs and emerging trends.

The Organization as a System Internally, an organization can be perceived as a resource transition machine that receives inputs (labour, money, products, and equipment) from the external environment (i.e., the universe beyond the organization's boundaries), transforms them into useful merchandise, goods, and services, and provides them to customers as final products. The organization must consistently monitor and adapt

to the environment in order to survive and flourish. Disruptions in the environment can pose significant threats or new opportunities. The successful organization will identify, assess, and respond to the various opportunities and threats in its environment.

The economic environment comprises factors that impact consumer purchasing power and spending patterns, such as business cycles, inflation, unemployment, interest rates, and income. Major changes in these economic variables have a significant influence on the market. For example, income directly affects consumer spending, which in turn affects sales for businesses. According to Engel's Laws, as income increases, the proportion of income spent on food decreases while the proportion spent on housing remains constant. (09/29/2010).

Abhinav Sharma.

Technological Environment

The technological environment pertains to emerging technologies that lead to the development of new products and market opportunities. Technological advancements are the most controllable uncontrollable force encountered by marketers. Companies must stay informed about new technologies in order to leverage these advancements for competitive advantage. Technology significantly impacts lifestyles, consumption patterns, and the economy.

Progress in engineering has the power to create new industries, completely change or eliminate existing industries, and stimulate separate markets. The rapid pace of technological advancements has required organizations to rapidly adapt in terms of their product development, pricing, distribution, and promotion (09/29/2010). Abhinav Sharma.

The Political and Legal Environment

Organizations must function within a framework of governmental regulation and legislation.

Government relationships with organizations involve subsidies, duties, import quotas, and deregulation of industries. The political environment consists of government and special interest groups that influence and constrain various organizations and individuals in a society. Organizations employ lobbyists to influence legislation and run advocacy ads that express their viewpoint on public matters.

Special interest groups have increased in number and influence over the past thirty years, imposing more constraints on sellers. The public demands that organizations act ethically and responsibly.

(09/29/2010). Abhinav Sharma. An example of how sellers respond to specific engagements is through green selling, which involves using recyclable or biodegradable packaging materials as part of their marketing strategy. Business legislation aims to protect companies from unfair competition, consumers from unethical business practices, and society from unregulated business behavior. As organizations expand globally, they must navigate complex legal environments and navigate governmental structures that differ from those in the United States. (09/29/2010).

Abhinav Sharma.

Demographic Environment

The demographic environment is important for sellers to understand their current and potential customers. It provides information about customer location and the likelihood of purchasing products or services. This involves analyzing human populations in terms of size, density, location, age, gender, race, occupation, and more. Changes in the demographic environment can bring both opportunities and threats for organizations. Marketers need to stay informed about key trends such as global population growth at an unprecedented rate, shifts in age groups, cultural diversity and educational backgrounds, the emergence of new family structures,and geographic population movements.

( 09/29/2010 ) . Abhinav Sharma.

Social /Cultural Environment

Marketers must understand and appreciate the cultural values of the environment they work in because social/cultural forces are unpredictable and challenging to control. The cultural environment encompasses influences that affect society's core values, perceptions, preferences, and actions.

U.S. values and beliefs encompass equality, accomplishment, youthfulness, efficiency, practicality, self-actualization, freedom, humanism, control over the environment, nationalism, individuality, spiritual and moral orientation, progress, materialism, social interaction, conformity, bravery, and sense of duty. Changes in the social and

cultural environment impact customer behavior, ultimately affecting product sales. Cultural trends involve individuals altering their perspectives on themselves, others, and the world around them, and moving towards personal fulfillment, instant gratification, and secularism. (09/29/2010). Abhinav Sharma.

Ecosystem Environment

The ecosystem comprises natural systems and resources that sellers depend on for inputs or are influenced by marketing activities. Recently, there has been an increase in environmental consciousness and emphasis on green selling concerning the physical environment. To tackle the depletion of natural materials, organizations have the option to choose renewable resources like wood and alternative energy sources such as solar power and wind energy instead of non-renewable resources like oil and coal. In addition, organizations can improve efficiency to reduce their energy consumption.

According to Abhinav Sharma (09/29/2010), goodwill can be created through voluntary actions that address pollution and preserve natural resources.

Political Environment

The political environment, a component of the macro-environment that is outside human control, can either benefit or harm a business depending on the current conditions in a country.

The way political relations are conducted in a state and their impact on the government directly affects various factors. In a democratic state, people have the freedom to vote for a government that prioritizes their interests, leading to thriving businesses due to well-implemented policies. On the other hand, a dictatorial government fails to gain its citizens' respect, resulting in economic and political instability. Consequently, businesses face uncertainty about their future and suffer as a consequence. This emphasizes the significance of a democratic government for both a country and its businesses. A stable country attracts more investment opportunities, thereby drawing more investors and benefiting local businesses directly as citizens have complete

confidence in them.

The success of businesses in today's political environment heavily relies on political relations. Politicians, who are typically in control of government operations, determine which countries to trade with and set trading conditions. Consequently, if a business or its owners have a negative relationship with politicians, they will suffer. Additionally, politicians enact the rules that govern trade, necessitating good relations between stakeholders in the business sector and politicians, even if success is not guaranteed.

(Joseph insight intelligence slatter) The political environment is a crucial aspect that determines business operations. It falls under the macro-environment, which includes external factors beyond an organization's control. Political factors pertain to the overall political situation in a country, often related to the government's condition.

If a state is inherently democratic, it enables individuals to possess complete voting authority and allows them to elect a government that would strive for the betterment of both the people and the state. In this scenario, concerns will thrive as a result of the government's favorable policies. Conversely, in the absence of democracy, the elected authorities are not respected. This leads to instability and uncertainty within the country.

It is crucial for a country and overall business to have a stable and democratic government and its political decisions. Governments and their various determinations and policies may change over time, which can create uncertainties for businesses. In such cases, businesses may not know what their future will hold. A stable political situation is important because it allows for more predictability and stability in the business environment. Additionally, a stable political situation can attract more investors from foreign countries. Furthermore, changes in technology can have an immediate impact on

businesses, as technology affects businesses on various levels.

Technological Environment

Changes in technology can have a significant impact on businesses.

The efficiency of an employee directly affects their productivity within a company. Additionally, remaining connected with customers is crucial for building customer loyalty. Advancements in technology have made this possible, allowing employees from different parts of the world to collaborate through video conferencing and telecommuting. (Morgan) Technology's impact on a business extends beyond its internal operations and also influences how consumers interact with it.

In the past, individuals had limited options for filing their tax returns. They could consult a certified public accountant or a professional tax preparer, or they could opt to do it themselves. However, many people felt unsure about handling their taxes independently due to the complex nature of the tax code. Thankfully, accounting software has progressed to a stage where individuals can now answer a set of questions and let the computer take care of everything else. This even includes electronically submitting all required information (Morgan). Additionally, social networking contributes to shaping the business landscape by linking employees with different social networks.

Although social media provides advantages for businesses, it also has potential drawbacks. It is crucial for employees to be cautious about openly sharing sensitive information and consider the impact of their public posts on the workplace, especially if they express negative opinions about colleagues or the company.

Nevertheless, companies can utilize social media platforms to assess customer satisfaction. For example, if a customer expresses dissatisfaction with a product online, the company can proactively address their concerns. The connectivity of social media platforms allows companies to demonstrate their commitment to

resolving customer issues and potentially gain new customers from such interactions.

The concern environment has been significantly impacted by technology, particularly in terms of telecommuting. With the availability of broadband access, computers, and smartphones, employees now have the ability to work remotely from their homes. This not only saves the company money by reducing the need for large physical office spaces, but also allows for greater flexibility and efficiency. Furthermore, the use of video conferencing has eliminated the requirement for in-person business meetings, resulting in savings on travel expenses and hotel accommodations. (Morgan)

Competitive Advantage

In certain markets, competition is fierce, while in others it is less intense. The market for Internet booksellers serves as a prime example of a highly competitive market with numerous buyers and sellers. Due to the large number of companies offering identical products, prices for these books tend to be quite similar.

This competition serves to reduce the net income that these houses can make. Competition occurs when two or more businesses independently provide their products to the same group of consumers.

Direct and indirect competition

Direct competition occurs when businesses produce similar products that appeal to the same group of consumers. For example, when two supermarkets offer the same range of chocolate bars for sale. Indirect competition occurs when different businesses make or sell items that, although not in direct competition, still compete for the same money in the customers' pocket. For example, a High Street shop selling Cadmium's may be competing with a cinema that is also trying to attract young shoppers to spend money on leisure activities.

Businesses are greatly impacted by competition. The prices they charge are limited by the level of

competition, and the range of services and types of products they offer are influenced by the degree of competition. For example, a business that sells an inferior product compared to its competitors will struggle to make sales unless they lower their prices.

Business Plan for JAM Magazines

Mission statement
Our mission is to establish a strong foundation for our business by cultivating profitable and long-term relationships with our customers. We strive to provide them with value for their money and excel in what we do best.

Aims of JAM Magazines

• Specific
• Put more effort into marketing the magazine since it is the driving force behind our business.
• Measurable
• Increase magazine sales by at least 30% compared to the previous year.
• Double this year's profit.
• Achieve a total sales revenue of $44,000 or more.
• Attainable
• Expand into a larger market.
• Realistic
• Manufacture products based on customer demand.
• Ensure that sales staff sells at least 65% of manufactured goods.
• Expand sales staff and sales growth in areas not covered by the current distribution network.

• Time
• Industry magazines on clip
• Distribute goods to sales staffs 24 hours before sales day
• Have time to oversee the overall finance of the business
• JAM Magazine Strategic Plan
• Name of the company: JAM Magazine
• Name of Director: Swayze Smith
• Name of Project: The marketing of JAM magazines
• Name of employee in charge of the project: Michele Brown
• Name of person planning the strategies: Swayze Smith

Project overview: to market the sports business using its objectives and mission statement as a guide.
Mission statement: Our Mission is to make our customers the foundation of our business by developing a profitable and lasting relationship, providing them with value for their money, and doing what we do best.
Visions of the business: to reach a larger market, make a profit, get the

business back on track, and have the stakeholders playing their part to help the business become profitable.

Schemes: JAM Magazine plans to work with other magazine companies, involve curates, purchase out distributors, and form partnerships with horizontal rivals.
Tactics for JAM Magazine include:
- Holding group meetings and signing contracts with other magazine companies.
- Engaging the athletics curator in selling to acquire curates.
- Raising finances to purchase distributors at a lower cost.
- Forming partnerships with horizontal rivals to increase sales.
Milestones for JAM Magazine include:
- March 4: Women's golf reaches new highs at the World Ladies Championship held at Mission Hills, with 108 participants from around the world.
- March 2: Guests and celebrities gather at Mission Hills.
- April 12: Mission Hills announces an $800 million investment to build Mission Hills Centreville, a one-stop shopping, entertainment, leisure, and business hub expected to open by the end of 2013.On May 1st, the 9th "Mission Hills Golfathon" opens. On May 24th, three major participants from China's leisure and amusement industries come together to announce a new film-themed commercial venture. The fifth-annual Mission Hills Jack Nicklaus Junior Championship is held on May 25th. In June, the season coda of the Mission Hills Junior Series takes place on June 9th at the World Cup Course in Shenzhen. On June 15th, Mission Hills Shenzhen and Dongguan announce an onsite review and assessment of eco-friendliness. Ratings are based on the China Low Carbon Tourist Demonstration Destination rating system. In July, the Mission Hills Clubhouse and Hotel reopen on July 1st after months of redevelopment. JAM Magazine has duties and responsibilities. A functional organizational structure chart can be found at the provided link. JAM Magazine also utilizes

monitoring and evaluation techniques. In summary, businesses in Jamaica analyze PEST and SWOT factors to understand and navigate the impacts of the environment on their operations.

• Schemes, missions, and objectives are developed to generate interest and involvement.
• Strategies for dealing with challenges are also developed.
• Income statements are created to assess financial standing.

Recommendations

It is recommended that the business expands its market globally in addition to selling locally. This will lead to a larger market and increased productivity. It is also suggested that the business stays aware of the market in order to align with its mission statement and organizational objectives.

Conclusion

It is concluded that the business can be highly productive once its needs are met.

They organize enjoyable events that can take them a long way with the help of stakeholders.