1. Date: June 10 and June 16, 2015
2. Number of Hours: 1.5 Hours
3. Time: 1030 - 1130
II. Class Schedule:
1. Course Code:
2. Course Title: Entrepreneurship and the Business Environment
3. Year: BS Entrepreneurship 3
4. School: DWCL
III. Objectives
1
IV. Subject Matter
1.The Business Environment
2 References:
V. Procedure
A. Pre-Discussion
1. Daily Routine
a. Checking of Attendance
2.Vocabulary Building
a. Business
Business may be understood as the organized efforts of an enterprise to supply consumers with goods and services for a profit. Businesses vary in size, as measured by the number of employees or by sales volume etc. But, all businesses share one common purpose that is to earn profits.
The purposes of business that goes beyond earning profits are: – an important institution in society
– for the supply of goods and services
– creating job opportunities
– offering better quality of life
– contributing to the economic growth of the country.
b. Environment
Environment refers to all forces, which have a bearing on the functioning of business. They can be forces of economic, social, political and technological factors, apart from internal forces of the organisation.
c. Business Environment
consists of all those factors that have a bearing on the business such as the strengths, weaknesses, internal power relationships and orientations of the organization, government policies etc….
The business environment poses threats to a firm or offers immense opportunities for potential market exploitation.
3. Motivation Question
How can you survive successfully?
4. Motive Question
How can a business survive successfully?
5.
D. During Discussion
1.Engagement Activity
a. What are the features of the Business Environment?
Totality of the external forces
Dynamic nature
Uncertainty
Specific and general forces
i) Totality of External Forces: Business environment is the sum total of all things external to business firms and, as such, is aggregative in nature.
(ii) Specific and General Forces: Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working. General forces (such as social, political, legal and techno- logical conditions) have impact on all business enterprises and thus may affect an individual firm indi- rectly only.
(iii) Dynamic Nature: Business environment is dynamic in nature. It keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market.
(iv) Uncertainty: Business environment is largely uncertain as it is very difficult to predict future happenings, especially when environment changes are taking place too frequently as in the case of information technology or fashion industries.
(v) Relativity: Business environment is a relative concept since it differs from country to country and even region to region. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.
(vi) Multi-faceted: Business environment changes are frequent and depend on knowledge and existence of business person. Changes may be viewed differently bu different individuals. It may be an opportunity
b. Types of Environment
On the basis of the extent of intimacy with the firm, the environmental factors may be classified in to different types of levels:
Internal factors: controllable and direct impact on business
External factors: unctrollable and indirect impact on business
Internal Environment:
Important Internal factors are:
Value system
Mission and Objectives
Management structure and nature
Internal Power Relationship
Human Resources
Company Image
Brand Equity
(i) First Mover Advantage: Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors. For example, Maruti Udyog became the leader in the small car market because it was the first to recognize the need of small cars in India.
(ii) Identification of Threats: Identification of possible threats helps in taking corrective and improving mea- sures to survive the competition. For instance; if an Indian firm finds that a foreign multinational is entering the Indian market, it can meet the threat by adopting measures like, by improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on.
(iii) Coping with Rapid Changes: All types of enterprises are facing increasingly dynamic environment. In order to effectively cope with these significant changes, firms must understand and examine the envi- ronment and develop suitable course of action.
(iv) Improving Performance: The enterprises that continuously monitor their environment and adopt suit- able business practices are the ones which not only improve their present performance but also con- tinue to succeed in the market for a longer period.
(v) Giving Direction for Growth: The interaction with the environment leads to opening up new frontiers of growth for the business firms. It enables the business to identify the areas for growth and expansion of their activities.
VI. Assessment
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