lcm-mba business environment analysis

8/8/2019 LCM-MBA Business Environment Analysis

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Business

Environment

Analysis


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DefinitionThe Environment of Businessconsist of all of those things towhich it may be influence

directly or indirectly Reinnecks&

Schoell


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Nature Factors vary from

Country to Country

Necessary for ProperBusiness Management


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Significance Internal Business Environment

Government Policies

Optimum Use of Resources

Market Study

Long-term Business Strategy


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Parts of

Environment


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Economic

InternationalDomestic


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Social

&

Cultural


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Political

&

Legal


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Natural

Atmosphere


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Environmenta

Scanning


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First Step of Environmental Analysis

Involves General Environmental Factors


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Environmental

Scanning

Process


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Monitoring

Assessment

ForecastingScanning


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Monitoring

TrackingEnvironmental

Trends


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Scanning

Frequently Following

Signals & Indicators


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Forecasting

Projecting Direction and Scopeof Environmental Change


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AssessmentIdentification and Evaluation

ofEnvironmental Changes

and

Effect on Business


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Capitalism

&

Socialism


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Capitalis

m


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Also Known as

Free Market Economy

Free Enterprise Economy


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Economic System in Which

most of the means ofproduction are privately

owned and production isguided and income distributed

largely through the operationof markets.


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Principals of CapitalismPeople are free To choose how they use their capital

resources

To do what they wish with their

property

Own Property Discover new solutions to old

problems and develop new products


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Characteristics

of

Free Enterprise


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Division of Labor

Individuals Undertaking Various tasks

Efficiency in Producing Goods

Specializations

Grater Creation of Wealth

Diversity of Product and Services


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Price ControllingFactor

Keep Up Demand

Order of Economic Exchange Rotation System for Factors of

Production

Fair Means of Allocation ofFactor

of Production


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RulesDirection Agreed By

the Whole System Prevent Illegal Transaction Validity of Business

Protects the Rights of

Transacting Parties


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Unplanned Order

Establishment of Society based on

Market Relationship

Result of Spontanous Human

Actions

Not Dependent on People


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Goods and ServicesGoods manufacturedarticles or products

ofart or craft Tangible

provide the basic wealth ofsociety


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Goods and ServicesServices Function of Serving for

ConsiderationsMay Use Goods

Signal of Wealth


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Goods and ServicesA motion picture, is a

product

Showing it on

projector, and atheater, is Service


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Variantsof

Capitalism


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Open Market economic decisions are made in

the marketplace.

right to own a business or to work buyers and sellers fixes the price

Competition between businesses

economic system combined with

high levels ofgovernment

regulation


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Mixed Economy

Free-enterprise System with

a Modified Socialism

Essential Industry Owned by

Govt.

Private Sector Heavily

Regulated and Taxed


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Advantages of Capitalism

Economic freedom is the most

basic of human liberties Greater opportunities for

advancement

Based on individual effort and

ability


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Critics of Capitalism

Lacks Security and

Stability

Failed to achieve a high

standard of living Inequalities of wealth


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Socialism


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System of social organization

in which property and the

distribution of income are

subject to social controlrather than individual

determination or marketforces.


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Principals' of Socialism

Nationalizations of

Means of Production Delegation of decision-

makingauthority

Workers' control


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Principals' of Socialism

Equal distribution of

National Income Levelling of status

differences Redistribution of Property


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Variantsof

Socialism


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Utopian Socialism(18th Century)

Henri de Saint-Simon

Charles Fourier

Robert Owen.


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Utopia No Place

Ideal Human SocietyIt is possible to create a

harmonious, cooperative humansociety in which everyone is an

owner of private propertythat is,the means of production of

wealth.


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Industrialism and Technology as

the means to a better worldMaximum use of the potential

of every member.

Unity And Cooperation

Self-Sufficiency

Principals of Utopian Socialism


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Imp

lementation-Hutterian Brethren. (Canada)

-Owens's New Harmony Inc(U.S.A)

-Biotechnic Research andDevelopment (Ireland)


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Christian Socialism(19th-century)

Frederick Denison Maurice

John Malcolm Ludlow

Charles Kingsley


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a new order that would

rest on the Christian

principles of equal rights

and democratic distribution

of economic power.- Walter Rauschenbusch


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Concern for the poor

Promoted partnership in productionand profit sharing in industry

Encouraged workers' and

consumers' cooperatives

Workers' education

Principals of Christian Socialism


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Imp

lementation-Europe 18th Century

-United States 19th

Century

Owens's New Harmony Ind.


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Democratic Socialism(19th century)

Karl MarxGeorge Bernard Shaw

BeatriceSidney Webb


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Gradual evolution of society from

capitalism to the worker state Education of the public and

peaceful political change.

Social Legislation

Gradually take over all production

ofgoods


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Revolutionary Socialism(20th century)

Adolf Hitler

Mao ZedongVladimir Ilich Ulyanov (Lenin)


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Use of Violence for Economic

Justice Equal distribution of land and

income. Organizations of workers

seizing the means of

production from the capitalists


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Criticisms of Socialism Economic calculation impossible

Economic Planning on the basis of

guesswork All prices for goods were simply

set by the government and frozen

there No proper allocation of resources

is ever possible


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