Business Enviroment

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A business can not exist in isolation, it has to deal with changes taking place inside and outside and in order to operate it must interact with its surroundings, which is the environment. The environment impacts a business to large extent such that it contributes to either the success or the downfall of a business. Therefore this paper is aimed at defining what business environment is and understanding why it is important, for a business individual to understand this environment. Apart from that, it will explain how organizational objectives changes through different stages of a business life cycle after defining what objectives are. It will also make a steady progression by analyzing how useful corporate social responsibility would be to Zambian Businesses. Lastly after defining what an environmental management system is, it will attempt to comment on its benefits and concluding by summarizing the business environment, organizational objectives, social responsibility and the environmental management system. A business cannot exist in isolation, it needs to interact with its environment and build relationships with its environment. And in order for an organization to build good relationships with its environment it must understand the factors in an environment that pose as opportunities and threats to the organization

According to Stephen R.Robbins (2007), organizations interact with its environment as it takes input and distributes outputs; this environment influences the decisions undertaken by a business. This influence can be either from external or internal environment. Therefore a business environment is the surrounding in which the organization interacts with. He further notes that a business environment refers to those factors and forces that affect the organizations performance and includes the internal environment and the external environment. The environment can be divided into Micro and Macro environment: Micro environment- This has direct impact on the organization and includes; Customers - Organization exist to meet the needs of customers, it is the customers who uses the organization‘s input, and they represent potential uncertainty to an organization, their tastes can change and/or they can become dissatisfied with the organization’s product. Therefore an individual needs to be able to satisfy such needs and being able to be innovative to cater for constant changing tastes. Suppliers -Organizations depends on these external groups as sources of input. These Includes providers of finance and labor inputs, who are needed to ensure a continuous supply of capital, a steady flow of needed inputs at the lowest price available. Apart from that they represent continuity for the organization in terms of finance and long term borrowing. The unavailability or delay of supply form suppliers can significantly reduce the organization‘s effectiveness.Kotler Phillip (2008) Competitors-all organizations have one or more competitors and the business can not afford to ignore the competition. The Competitors in terms of pricing, new products, developed services offered represent an environmental force that should be monitored and which they must be prepared to respond. According to Kotler, An organization must gain strategic advantage by positioning their product strongly against competition. The Other Business environment which has an impact of a business includes the following: Political environment/Legal-this includes local laws and government can influence what an organization can do and what it can not do. It refers to Laws and regulations that protect each business from another also provide guide lines on how to operate in a large market without exploiting its labour inputs as well as Consumers. In addition to this, governments tend to set regulations for employment and minimum wages and conditions for Trade unions which in turn influences the supply of labour inputs and employment contracts. Governments develop...
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