Taking Risks and Making Profits within the Dynamic Business Environment

A person’s environment and life style can impact hugely on a person’s life, phycially emotionally and mentally. To reduce environmental issues people can change there lifestyle to be healthier doing things like exercising, reduces fat and having a healthy diet, and having positive happy relationships in your life.

It is of great importance to make an analysis of the environment in which an organisation operates in order to develop and implement a suitable, successful strategy for the company. According to Johnson, Scholes and Whittington (2008) the business environment of a company is an important issue determining its survival and success. There are several layers of this business environment – the macro environment, the industry or sector layer, the layer with competitors and markets.

Business environment is all about the combination of internal and external factors that may influence a business’ ways of operating such as: clients, suppliers, its competitors... stakeholders decide to start a business for many reasons: to pursue an interest or a hobby, mainly: to be their own boss. In other terms, people think that being your own boss, mainly as a sole trader gives you many opportunities although there are drawbacks as well. They also have interest in business they want to be successful.

All businesses will be affected by factors in its environment. The following are the 3 main factors affecting businesses;

Entrepreneurship is the willingness to take risks to create and operate a business. An entrepreneur is someone who sees a potentially

An environmental analysis in plays an essential role in business management by providing possible opportunities or threats outside the company in its external environment. The purpose of an environmental analysis is to help to develop a plan by keeping decision-makers within an organization. The changes include exchanging of executive parties, increasing guidelines to decrease pollution, technological developments, and fluctuating demographics. An environment analysis helps the industries to improve the outline of their environment to find more opportunities or threats.

Every organization has to analyze its business environment before making policies and strategies for its day to day operations, marketing and promotional efforts, and competing with the industry rivals (Loudon, Stevens, & Wrenn 2004). The key factors of the business environment that affect the business operations of a company include political, economic, technological, environmental, cultural, and demographical factors. In addition to these factors, an analysis of the competitive forces is also essential in order to assess the potential threats and intensity of rivalry present in the industry (Ritchie & Crouch 2003). If an organization does not give importance to the analysis of its business environment, it may not be able to compete in the industry for a long period of time (Hill & Jones 2007).

increase taxes and decrease government spending it would be beneficial to the national debt as

     A businesses environment creates many opportunities as well as problems for prospering businesses. The environment determines what a business can do by shaping and channeling its development. Businesses function within an environment by allowing entrepreneurs to raise capital and create profits freely. The supply of money available within a business as well as the economic stability through times of growth and recession have strong effects on businesses. Not only is the physical environment, including natural resources, pollution and energy as discussed previously, important, but many other

In this term of our discussion we’re talking about business environment. It’s like an overview of the whole business environment. Simply environment of a business means the external forces including the business decisions. They can be forces of economic, social, political and technological factors.

To assure the success of a business over a long period of time the business must be able to conduct regular analysis of their success. They must be able to determine where they are today and have a goal of where they would like to see themselves 5-10 years down the road. In order to conduct a true analysis of the company, one must complete an environmental scan of their organization. Thus scanning for events, trends, issues and expectations that they may be faced with in the future. Furthermore, examining all internal and external environment challenges. Internal environmental challenges may be with employees, shareholders or board of directors or the overall culture of the organization. External environmental

In today's world, no business operates in isolation without interacting with the environment where it operates. Irrespective of the nature of business whether public or private organization; manufacturing; service industry; local or international firm, its operations are inhibited by the environment in which it operates.

An organization is an open system; therefore it interacts with its environment. To manage the relationship with the environment, a large part of strategic planning is concerned. The environmental factors can be divided to 2 main categories, which is MACRO and MICRO .Macro environmental factors seriously affect an organization business practice, profitability and future progress. It can

Business is loosely defined as buying and selling. However business is both an economic and social activity which is done to acquire wealth and serve the society through the provision of goods and services which the society needs.

The business environment can be understood in terms of four factors: Factor (Input) Conditions, Context for Firm Strategy and Rivalry, Demand Conditions, and Related & Supporting Industries. Factor (Input) Condition: