Business Environment in United Breweries Limited

Topics: United Breweries Group, Vijay Mallya, Kingfisher Airlines, Bangalore, Beer / Pages: 13 (3048 words) / Published: Aug 11th, 2008

A management system describes the organization and the set of significant interacting institutions and forces in the organization 's complex and rapidly changing environment that affect its ability to serve its customers. A business firm must continuously monitor and adapt to the environment if it is to survive and prosper. Disturbances in the environment may spell profound threats or new opportunities for the firm. The successful firm will identify, appraise, and respond to the various opportunities and threats in its environment.

Business environment is the surrounding or atmosphere under which business is conducted. Business cannot work in vacuum or isolation and needs favorable surroundings to survive and grow. The environment of business includes all forces like legal, social economic, political, technological, cultural and other factors, which provide resources for production (like energy, air, water materials, land) and a place for disposal of finished goods and waste products.

The management system can be conceptualized on two levels. The first level involves the organization 's internal environment. Internally, an organization can be viewed as a resource conversion machine that takes inputs (labor, money, materials and equipment) from the external environment (i.e., the outside world), converts them into useful products, goods, and services, and makes them available to customers as outputs.

The second level of the management system involves the organization 's external environment. It consists of all the outside institutions and forces that have an actual or potential interest or impact on the organization 's ability to achieve its objectives: competitive, economic, technological, political, legal, demographic, cultural, and ecosystem.

Environmental forces create challenges and opportunities for the organization. Managers must react and adapt to changes in their internal and external

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