Business Environment

Group Members: Bishnu Maya Sanyasi(031902)

Wangchuck(031920)
Tashi Dorji(031918)
Baken Dhungyel(031902)
Auditing Environmental Influences
Environmental auditing is an attempt to provide
information on the environmental performance of a
company, and thus include environment issues in the
decision making process.
For the impact of industries and their product on
natural resources and environmental quality it is
necessary to have “Environmental Audit’ to ensure
sustainable industrial development.
Economic factors and restructuring
Restructuring refers to the changes in ownership, business
mix and alliances with a view to enhance the shareholder
value.
Hence, restructuring may involve ownership restructuring,
business restructuring and asset restructuring.

 1.Expansion
2.Contraction
Motives
behind 4.Change in ownership
Restructuring 2.Corporate Control
Capital Market
The part of a financial system concerned with raising
capital by dealing in Shares, Bonds and other long-
term investments.
An organization should take into consideration the cost
of capital, allocation of resources and merger and
acquisition.
Demographic and Socio-Cultural
Demographics are various traits that can be used to
determine product preferences or buying behaviors of
consumers. Most companies identify their key
customers through these various traits. They can target
consumers with like characteristics in their
advertisements and promotion. Target customers with
similar demographic characteristic helps maximize a
company’s sales or profit.
Socio-cultural includes religion, language, values and
attitude, education and social groups.
Technology
Technology have taken its advancement which leaves
the business houses to produce an ideal product
because of the outdated technology used by them.
Hence, it is important for business leaders to
understand the importance of the technology to excel
in achieving their goals and objectives.
Labor market,Competition,Government
and supplies
Labor market: Place where workers and employees
interact with each other.
Competition: Rivalry among sellers trying to achieve
such goals as increasing profits, market shares and
sales volume.
Government: Political agenda setting , conflict
resolution and maintenance of power relations.
Supplies: Number of suppliers and loyalty of the
supplier and the organization.
 Models of Strategic Analysis

Legal Political
Economic

PESTE

Environmental
L
Social
Technological
Political Factor
Government policies and stability
Fiscal and Taxation policies
Economic Factor
Interest rates
Unemployment rate
Cost of raw-materials
Foreign exchange rate
Disposable income
Trade tariff
Inflation rate
Local economic situation and trends
Social Factors
Ethical Issues
Education levels
Cultural trends
Attitude changes
Change in lifestyle
Technological Factors
Technological Development
Research and Development
Information Technology (IT)
Communication
Consumer Preferences
Environmental Factors
Ecological
Environmental Issues (National & International)
Climate
Waste disposal and sustainability
Recycling procedures
Legal Factors
Employment Law
Consumer Law
Environmental Regulations
Competitive Regulation
Health and Safety
Strength
Advantage the organization has and the unique selling
proposition.
Brand Name
Patient
Workforce with particular skill set
Weaknesses
Factors which ultimately lose your organization’s sales
Less labor force
Out-dated technology
Shortage of Finance
Weak control System
Opportunities
Opportunities open to the organization. Some of the
opportunities will come via organization’s strength.
Tax holidays
Tax exemption
Less market
Threats
Environment that can adversely affect its performance
or achievement of its goals.
New and existing regulations
New and existing competitors
New Technology that may make our product obsolete
Unstable political and Legal systems
Economic downturn
/BCG Model
Strategic Group Analysis( the
growth/share matrix)
Similar group of companies within an industry that
have similar business models or similar combination of
strategies for example, restraint industry is analyzed to
take over the market share by having a competitive
advantage over others.
Helps in identifying who is the most direct competitors
and on what basis they compete.
Is also used to identify opportunities.
Help identify strategic problems.
Critical Success Factor Analysis