HND level 4 Business Environment
“Business environment encompasses all those factors that affect a company 's operations; including customers, competitors, suppliers, distributors, industry trends, substitutes, regulations, government activities, the economy, demographics, social and cultural factors, innovations, and technological developments. It may also be referred to as Operating environment.”
(Quantum3, 2012)
“The definition of business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.” (Yourdictionary, 2013)
“Importance of business environment can be assessed by the fact that a business cannot be run properly without a proper setup for its support. When an investor decides to start a business in a country or region he/she first analyzes the prevalent conditions with respect to the businesses. If these conditions are congenial to it he/she would waste no time to start the business. Otherwise he/she explores other countries or regions to set up new business there. The importance of business environment cannot be overlooked either one has to start a big business or smaller one. Establishing any size of the business one has to see whether one’s business would earn profit or not. All the other considerations are of the secondary importance. For example if in a country raw material is so cheap but the wages are quite high it means lower cost of one factor of production would be offset by the other. The importance of business environment can also be judged by the widely growing off-location global industry of information technology. In South Asian and African countries wage rates in IT industry are so cheap. But their business environment is not so much congenial. Therefore, global IT giants hire the manpower from there and make them work from their home. This is called off-location IT business. In this way physical uncertainties can be
(Quantum3, 2012)
“The definition of business environment means all of the internal and external factors that affect how the company functions including employees, customers, management, supply and demand and business regulations.” (Yourdictionary, 2013)
“Importance of business environment can be assessed by the fact that a business cannot be run properly without a proper setup for its support. When an investor decides to start a business in a country or region he/she first analyzes the prevalent conditions with respect to the businesses. If these conditions are congenial to it he/she would waste no time to start the business. Otherwise he/she explores other countries or regions to set up new business there. The importance of business environment cannot be overlooked either one has to start a big business or smaller one. Establishing any size of the business one has to see whether one’s business would earn profit or not. All the other considerations are of the secondary importance. For example if in a country raw material is so cheap but the wages are quite high it means lower cost of one factor of production would be offset by the other. The importance of business environment can also be judged by the widely growing off-location global industry of information technology. In South Asian and African countries wage rates in IT industry are so cheap. But their business environment is not so much congenial. Therefore, global IT giants hire the manpower from there and make them work from their home. This is called off-location IT business. In this way physical uncertainties can be
References: http://www.childcare.co.uk/profile/Katrinas-Kare/ Accessed: 3rd of July, 2013 http://mam.econoday.com/byeventdef.asp?event_id=259&cust=mam accessed 03/08/13