Elements of Small Business Environment

THE section OF THE SMALL BUSINESS surround Entrepreneurship Individual Assignment THE ELEMENT OF THE SMALL BUSINESS surround Entrepreneurship Individual Assignment NGUYEN THAI HA B0074 BA505 ETR401 LECTURER MR. NGHIAHT NGUYEN THAI HA B0074 BA505 ETR401 LECTURER MR. NGHIAHT CONTENTS I. INTRODUCTION of ENVIRONMENT II. INTERNAL ENVIRONMENT III. EXTERNAL ENVIRONMENT 1. Task environment 2. oecumenical Environment IV. CONCLUSION V. PREFERENCES I. INTRODUCTIONIn order to start up or compose effective, each new and current companies stand to use a mo of elements within the surround to gauge the path by which they ought to steer. So what is milieu? Environment is the sum total of forces outside of the entrepreneur and the firm match to BRIE, the entrepreneur have to create a Boundary within the environment, mountain firm apart from the rest of the environment. The Resources, says, knowledge, money argon poised from the environment. It is as well at the core of Exchange because Exchange is the firm/entrepreneur dealing with the atmosphere buying, selling, trading, etc.Similar article KFC Macro EnvironmentIn short, a firms operation activities always involves with environment or environmental factors. Its divided into 2 elements Internal and External Environment. The Task & the planetary Environment atomic number 18 subset of External Environment. II. INTERNAL ENVIRONMENT In conformation with the definition of Internal environment in the text book, Internal environment are the people & groups within the boundary of firm, including the owners, managers, employees, and board members of the firm. grounds the Internal context is essential to confirm that the risk assessment move up meets the needs of the firm and of its owner.It is the environment in which the firm ope prescribes to achieve its objectives and which grass be influenced by the firm to manage risk. The internal context is considered having to a greater extent factors than just all members involved * Internal stakeholders owners, managers, etc. * The policies, vision, mission and strategic plan in place to achieve them Vision and mission are vitally important to a trading because of the organizeion, guidance and purposes, even rapture they give to both employees and entrepreneurs. * Perceptions, value and culture Culture factor inwardly the firm fucking make or break the employment.At best, the corporate culture keep be a rivalrous advantage at worst, it can be a significant drag on stage business results. Companies with an varyive culture that is aligned to their business goals routinely outperform their competitors. Some studies tarradiddle the difference at 200% or more. Mostly, it is the owner, entrepreneur who make up business culture. The leaders who are able to shape their culture have a sanguine understanding that creating thriving, high-performance culture aligned with their high societys mission, vision and values is vital strategy for success .HP (Hewlett Packard) coped with many problems few forms ago and was forced to change its culture. Each mental faculty has to point out their own personal and professional objectives for a year and are encouraged, supported to meet the goals. After the change, HP no durable loss in productivity despite shorter working time and append in staff retention rate. * The capabilities in term of resources & knowledge people, bodily assets, technologies, etc. * Standards and reference models in system, enterprise, software engineering * Structures g overnance, roles, etc.III. EXTERNAL ENVIRONMENT A business has to interact to what happen outside internal environment to fulfill Exchange in BRIE model. It is External environment surrounding the business operations and the internal environment of business. External environment may let in Task Environment which can be called Micro Environment and widely distributed Environment or Macro Environment. 1. Task Environment Micro Environment a . Element of Task Environment The microenvironment is made from components that are close to the alliance and directly impact the business.For examples * Publics group can have anactual or authorization interest in or impact on an shapings ability to achieve its objectives. Publics canbe * Media publics carry news, features, and newspaper column opinion * Local publics neighborhood residents and community organizations. * Customers Company must force field its customer markets closely since each markethas its own special characteristics. Customers can be B2C, B2B or B2G * Suppliers Provide the resources or input needed for the business to produce goods and services that play detect roles in value auction pitch system for customers.Suppliers can leave huge impact on business due to supply shortage or the bargaining power of suppliers * Competitors A company has to face with wide range of competitors and secures its strategic competitive advantages over competitors by technolog ies or selling point of the products or wipes out the marketplace. .. Walmart role will serve as an example. Walmarts Micro environment would be very much focused on immediate local anesthetic issues, local public. It would consider how to recruit, retain and extend products and services to customers.Walmart should pay close oversight to the actions and reactions of direct competitors local markets, etc. Walmart would build and nurture close relationships with key suppliers for pricing factors and time of delivery. b. Porter five forces Task environment elements also appear in Porter five forces which is a framework for manufacture analysis and business strategy development. It derives five important forces that determine the competitive intensity and therefore, the attractiveness of a market. 5 typical factors have direct impact on the business. . ecumenical Environment Macro Environment The General Environment can be described by PESTEL model. It refers to all forces that ar e part of society, impact business and micro environment. * Political factors include * brasss stability * Social policies welfare, etc. * Trade regulation EU & WTO, etc. * The Government set the laws, regulations and policies that can promote or narrow down the individuals and organizations in a society * Economic factors * Economic growth * Unemployment rate * Interest rate Economic factor can effect acquire power and spending patterns. Element like interest rates affect a firms cost of capital and therefore a business grows and expands. Exchange rates affect the export and import goods in an economy. * Social factors * Demographics Demographics studies population patterns sizes, age, sex, occupation, ethnicity, etc. Those patterns are investigated for companies to change various strategies to adapt to these social trends, such as recruiting staff or design fitted products for each segmentLet take an example of age changing structure in US * Generation Y born 1980 1995 - t echnology wise, optimistic, confident, sociable, flexible and changing in its fashion, style consciousness * Generation Z born afterwards 1995 - life with internet, phones, communicate through social media rather than personally opposition * Technological factors R&D, automation, etc. This factor can affect cost, look and lead to innovation of a business. * Environmental Eco factors Climate, energy consumption, waste disposal, etc.Awareness of the potential impacts of climate change affects how companies hunt and the products/services they offer. There is a strong connection between a healthy economy and a healthy environment. Business should build environmental sustainable strategies for a life-long span. * Legal factors antimonopoly law, consumer law, employment law, etc. Legal factors can shape the way companies operate and interact with employees, customers, etc. IV. CONCLUSION In summary, elements from environment have indispensable vital impacts on the business.Therefore , entrepreneur should be prepared care unspoilty with full analyzed information from those elements to help their business be able to hold out and develop. V. REFERENCE Jerome A. Katz, Richard P. special K II. Ed. 2011. Entrepreneurial Small Business. 3rd Edition. China The McGraw Hill. Jerome A. Katz, Richard P. Green II. 2011. The element of the small business environment. China The McGraw Hill. Ch. 2. go for 1. Jerome A. Katz, Richard P. Green II, 2011. intravenous feeding elements needed to get your business started. 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