Elements of Small Business Environment

Only available on StudyMode
  • Topic: Porter five forces analysis, Strategic management, Generation Y
  • Pages : 6 (1534 words )
  • Download(s) : 850
  • Published : March 24, 2013
Open Document
Text Preview
THE ELEMENT OF THE SMALL BUSINESS ENVIRONMENT
Entrepreneurship Individual Assignment
THE ELEMENT OF THE SMALL BUSINESS ENVIRONMENT
Entrepreneurship Individual Assignment
NGUYEN THAI HA B0074 - BA505
ETR401  |  LECTURER: MR. NGHIAHT
NGUYEN THAI HA B0074 - BA505
ETR401  |  LECTURER: MR. NGHIAHT

CONTENTS
I. INTRODUCTION of ENVIRONMENT
II. INTERNAL ENVIRONMENT
III. EXTERNAL ENVIRONMENT
1. Task Environment
2. General Environment
IV. CONCLUSION
V. PREFERENCES

I. INTRODUCTION
In order to start up or become effective, each new and current companies have to use a number of elements within the environment to gauge the path by which they ought to steer. So what is environment? “Environment is the sum total of forces outside of the entrepreneur and the firm” According to BRIE, the entrepreneur have to create a “Boundary within the environment, setting firm apart from the rest of the environment”. The Resources, says, knowledge, money are gathered from the environment. It is also at the core of Exchange because Exchange is the firm/entrepreneur dealing with the atmosphere – buying, selling, trading, etc.

In short, a firm’s operation activities always involves with environment or environmental factors. It’s divided into 2 elements: Internal and External Environment. The Task & the General Environment are subset of External Environment.

II. INTERNAL ENVIRONMENT
In accordance with the definition of Internal environment in the text book, “Internal environment are the people & groups within the boundary of firm, including the owners, managers, employees, and board members of the firm”. Understanding the Internal context is essential to confirm that the risk assessment approach meets the needs of the firm and of its owner. It is the environment in which the firm operates to achieve its objectives and which can be influenced by the firm to manage risk. The internal context is considered having more factors than just all members involved * Internal stakeholders: owners, managers, etc.

* The policies, vision, mission and strategic plan in place to achieve them Vision and mission are vitally important to a business because of the direction, guidance and purposes, even inspiration they give to both employees and entrepreneurs. * Perceptions, value and culture

Culture factor inside the firm can make or break the business. At best, the corporate culture can be a competitive advantage; at worst, it can be a significant drag on business results. “Companies with an adaptive culture that is aligned to their business goals routinely outperform their competitors. Some studies report the difference at 200% or more”. Mostly, it is the owner, entrepreneur who shape business culture. The leaders who are able to shape their culture “have a strong understanding that creating thriving, high-performance culture aligned with their company’s mission, vision and values is vital strategy for success”. HP (Hewlett Packard) coped with some problems few years ago and was forced to change its culture. Each staff has to point out their own personal and professional objectives for a year and are encouraged, supported to meet the goals. After the change, HP no longer loss in productivity despite shorter working time and increase in staff retention rate. * The capabilities in term of resources & knowledge: people, physical assets, technologies, etc. * Standards and reference models in system, enterprise, software engineering * Structures: governance, roles, etc.

III. EXTERNAL ENVIRONMENT
A business has to interact to what happen outside internal environment to fulfill Exchange in BRIE model. It is External environment surrounding the business operations and the internal environment of business. External environment may include Task Environment which can be called Micro Environment and General Environment or Macro Environment. 1. Task...
tracking img