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FACTORS INFLUENCING

BUSINESSS DECISION
Group: 1
Akhil Abraham George
Amala Mathew
Cherry Varghese
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INTRODUCTION
Business environment consists of all
those factors that have a bearing on
the business.
Strategy is defined as establishing a
proper firm-environment fit.
Business decisions are conditioned by
two factors:-
* internal
* external
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INTERNAL ENVIRONMENT
Value system
The extent to which the value
system is shared by all in the organisation
is an important factor contributing to
success. The value system and ethical
standards are also among the factors
evaluated by many companies in the
selection of foreign business partners.
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Mission and objectives
The business domain of the
company, priorities, direction of
development, business philosophy,
business policy etc are guided by the
mission and objectives of the company.
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Management structure and nature
The organisational structure,
the composition of the Board of Directors,
extent of professionalisation of
management etc are important factors
influencing business decisions.ss
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Internal power relationship
It includes the factors like the
amount of support the top
management enjoys from different
levels of employees, shareholders and
Board of Directors
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Human resources
The skill, quality, morale,
commitment, attitude etc contributes
to the strength and weakness of an
organization. The organisational
culture and overall environment have
bearing on them.

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Company image and brand equity

The image and brand
equity of the company matters while
raising finance, forming joint ventures
or other alliances, soliciting market
intermediaries, entering purchase or
sales contracts, launching new
product etc


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Other factors
It includes:-
* physical assets and facilities
* R & D and technological capabilities
* marketing resources
* financial factors
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EXTERNAL ENVIRONMENT
External business environment
consists of:-
- micro environment
- macro environment
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MICRO ENVIRONMENT
Also known as task environment and
operations environment.
They have a direct bearing on the
operations of the firm.
Micro environmental factors are more
intimately linked with the company.
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Suppliers
Reliable source/sources of supply is
important to the smooth functioning of
business.
Many companies give high importance
to vendor development.
Multiple sources of supply helps to
reduce many risks.

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Customers
A company have different categories
of consumers like individuals,
households, industries etc.
The choice of the customer segments
should be made by considering a
number of factors including the
relative profitability, dependability,
stability of demand etc.
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Competitors
Competition has several dimensions-
Desire competition
Generic competition
Product form competition
Brand competition

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Marketing intermediaries
They are the firms that aid the
company in promoting, selling and
distributing its goods to final buyers.
They include agents, merchants,
warehouses, advertising agencies,
media firms etc.
They connect the company with the
consumers.
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Public
A public is any group that has an
actual or potential interest in or impact
on an organisations ability to achieve
its interests.
It includes media publics, citizens,
action publics and local publics.
Some publics are threats to business
and some other are opportunity for the
business.
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MACRO ENVIRONMENT
Also known as general environment or
remote environment.
They are more uncontrollable than
micro forces.
The success of a company depends
on its adaptability to its environment.

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The important factors include:-
Economic environment
Demographic environment
Technological environment
Natural environment
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THANK YOU !
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