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Business Environment Essay


The business environmental analysis is one of the systematic processes that generally starts from the process of identification of all the factors of the environment, then assessing their impact and also assessing their nature then further more auditing them in order to find their impact on the business and then furthermore making various and many different profiles in order to do positioning.

One of the common processes of the environmental scanning or analysis is discusses in the below mentioned section.

A business manager is responsible for each and every task. It is his duty to analyze the environment, to grasp and also to acquire all the opportunities and also to face each and every kind of threats. Each and every organization need to build and to make strength and also strength in order to repair their weakness which are available in all over the environment of business. Therefore this procedure consists of various steps.

Business environmental analysis comprises of various steps like:

  • Scanning
  • Monitoring
  • Analyzing
  • Forecasting

Scanning is a process, which is used in order to get the relevant and in order to get the useful information from all over the area. It is also used to focus on the most precious information.

Monitoring is the process, which is used to check and also to monitor the nature of all the factors of the environment. Whereas on the other hand analyzing requires and consists of data collection and it also consists of all the different techniques and tools. Whereas in the end forecasting is the process which is used to find all those future possibilities which are based on all the past results and also which are based on the present scenario. Business environmental analysis is a general process, which is termed to be known as a dynamic process. It may also differ by depending on the situations however the general process consists of the following steps:

  • Identify and monitor all the environmental factors.
  • Selecting and scanning all the relevant factors and also grouping them.
  • Define all those variables, which help a lot in analysis.
  • Using different kinds of techniques, tools and methods.
  • Forecasting and analyzing all the business environmental factors.

Selecting and scanning are one of the most important key factors, which are used for any kind of business.


A business is not termed as a business those functions in a vacuum. Apart from this it has to act and also has to react to what is happening outside the office walls. Every kind of factor which happen outside the business is termed to be known as an external factor or are also known as influences. These kinds of factors can affect the main and the most important internal functions of the business and apart from this it can also affect the strategies and the objectives of the business.


One of the main factors that highly affect the business is the degree of competition. Whereas other factors are:

  • Legal
  • Social
  • Political
  • Economic
  • Technological
  • Ethical

As we all know that markets are also changing all the time. It also depends on the kind of the product the business is producing.

Below mentioned are some of the main reasons that why markets change rapidly

  • Due to competition and business.
  • Due to new technologies.
  • Due to new competitors.
  • Due to develop needs and wants of the customers.

Apart from this any business does not want competition always from other business because then they have to face more and more degree of competition.


The social change occurs when all the people in the community or in any business try to adjust their attitude towards the way they live. Apart from this business also needs adjustments for their products in order to meet different kind of changes. All the business needs changes in order to be aware from their social responsibilities. It is very much important to know that what are the effects of a business can have on any local community. These terms are considered as the social costs and also the social benefits.

A social benefit is a benefit where any business action leads to high benefits whereas social cost is the cost where the action has reverse effects.

Governments also encourage this kind of social benefits from the use of all the subsidies and also from the grants. And along with this they also discourage the social costs along with the taxes, fines and all the legislations. The business environment analysis also helps to understand that what is happening both externally and internally in your organization and it also increases the probability with the help of which an organizational strategies that you develop will easily reflect the environment of your organization.

In order to perform a well-based environmental analysis you have to understand thoroughly that how the organizational environments are structured. For this purpose you can very easily divide your organizational environment in internal environment and also in external environment and along with this in general environment and in operating environment.

It is a natural phenomenon that each and every business industry in this world really want to grow fast and rapidly along with a minimal cost of producing the services and products. In order to achieve the best quality in the minimum cost is an easy task, which can very easily be done by adopting the new and latest trends, which are prevailing in the business world.

One of the cheapest modes to save money and also precious time is the outsourcing of work. It is very well known that the world business consists of a large number of huge and fast growing companies in order to get the maximum quality work done in cheap costs.

Now days off shores development centers are becoming more and more revenue generating concepts for all those outsourcing firms. All the off shores development centers are the source of complete set of the ready made well qualified and also the best professionals who always work as per the requirements of all the outsourcing firms. One of the major properties of off shores centers for becoming most popular is the customized service at very low costs. Very well equipped and along with this the suitable technology device is one of the strongest reason in order to have attraction of all the outsourcing firms. (Business Environment Definition, 1999, pg 50-53)

There are multiple facilities which are provided by most of the off shore companies.

The business environment is the environment, which is nothing but is everything if it has power and source. The power is only gained by popularity and popularity is acquired by the publicity of the products, which are produced by the company.

In order to have a strong business environment, it is the utmost duty of each and every company to produce such kind of products through which the company can gain fame and also can gain success.

The most important duty of any organization is to scan the entire horizon in order to have the reasonable and also to have an accurate forecast of all the likely changes in the business environment and also to maintain its strategies in the line along with the changes, which are perceived for the success for each and every organization.

One of the main points that also require a great emphasis is that each and every organization has to be ready to face any kind of the changes in the business environment. Those changes that are often bound to occur at any time and those changes that contain several kinds of variables which are also interconnected with each other.

No business in this world is always making profits, there are many kind of business, which are also suffering loss, but they are always ready to face any kind of loss because they are strong enough and can face any kind of danger and loss.

Each and every business environment should be ready to face any kind of business loss so that with the help of that faced loss they can work more and more and therefore can also become a strong organization. One of the main ideas in this paper is to become and to stay competitive. All those organizations and firms, which stay competitive, are the one, which never face any kind of danger or any kind of loss and this is the main point that how they are making profits day by day and how they are becoming more and more famous. Competitiveness arises only because of the competition from any other firm or from any other organization. And this is the main factor with the help of which any firm or any organization can face the competition and can become the powerful one.

Different research and development is also perceived very much successful if it can really helps in developing the strength in an organization or in any firm. First of all, forecast all the factors of the environment then collecting the relevant information and further more analyzing the past information in order to predict the future is one of the main objectives of the entire business environment.

There are verities of the reporting profiles and formats, which are used in order to have an internal as well as an external analysis of the business environment. ETOP which is also known as environmental threat and opportunity profile is only used to report the external situation where as on the other hand SAP known as strategic advantages profile is used to report the internal situation of any firm or of any organization.

Each and every kind of the business environment is responsible for performing such kind of duties with the help of which a firm can work better and better and can gain success and success. To gain success the main component which every organization should use is the main power and the main formula and the strategies through which any firm can gain success and can rule for many time.

In the end of this paper the main reason which is mentioned is that what actually is the environment of the business that how it works, what are its responsibilities, what should be done in order to gain more and more success and what should be avoided in order to be safe from all the dangers.

Business environment is that kind of environment in which different people are working together, they do share their values, they do share their thoughts, they do exchange their ideas and in the end they only demand for advantageous and a useful results. It is the utmost duty of each and every organization to work better and better in order to have a best corporation that can provide best and best work along with this that corporation that can also provide good and good results.

The business environment is the environment, which consists of each factor with the help of which any organization or any firm can become a successful one or with the help of this can face any kind of loss too.

In each and every business environment many people are working together in one place where they exchange their values their thoughts and work together so that with the help of this they can gain more and more advantage.

Business environment is a place or is an environment where there is different kind of people too. There are those people too who really wants to work and really wants to gain success and there are those people too who are only there to earn money and nothing else. But the main focus of each and every person who is working in any organization or in any firm should work on some specified rules and regulations.

If each and every person working in an organization follows some rules and regulations then they can work and perform very well and in the result they can gain more and more success and advantages. (Business Environment Definition, 1999, pg 50-53)

It is also agreed that the sustainability of each and every environment must always be build on the long-term social and also on the long term economic sustainability and that each and every kind of minute challenges of the sustainable development also requires the integration of each and every kind of the economy and also for the environment in all the sectors and at all the levels. “The main objectives of the private sector also led to the economic growth in a competitive global world that is not always compatible with any state or with any kind of the community.

Following are some main factors which should be consider when working in any kind of the business environment:

  • Work properly
  • Show interest.
  • Work regularly.
  • Work with full zeal and zest”.

For example Gibraltar is a fast growing multinational company which has a brilliant business infrastructure along with a good telecommunications apart from this it is also coupled with the huge use of the English as a language and also a legal system which is largely based on the English law which makes this business more and more powerful and more and more brilliant.

Apart from this there is also a good range of the professional services in Gibraltar, especially for the banking, the trust management and also mutual fund sectors are also there. (Business Environment, 2003, 1)


An Hodgson. Mounting inflation in Argentina threatens business environment, 17 May 2007

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Business Environment Definition, 1999, pg 50-53

www.bitpipe.com/tlist/Business-Environment.html Accessed March 28, 2009

Business Environment and Concepts, the Board of Examiners of the

American Institute of Certified Public Accountants, June  2002

http://www.cpa-exam.org/download/bec-paper-final.pdf Accessed March 28, 2009

Business Environment, 2003

www.iiml.ac.in/faculty_staff_business_environment.html Accessed March 28,

Vibrant Business Environment Malaysian Industrial Development Authority (MIDA), 80-84, 2009

www.mida.gov.my/en_v2/index.php?page=vibrant-business-environment Accessed March 28, 2009

World of Work Report 2008, International Labor Office, Switzerland

www.businessenvironment.developmentgateway.org/  Accessed March 28, 2009

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