The business environment is a mix of several internal and external elements that directly affect the business process of an organization. Business environment can be dynamic, interdependent, uncertain, media of social change etc. that have various effects on a business (Kaschek, 2008). It is divided into two categories such as macro environment as well as a micro environment that can help a firm to make economic development and provide a way to reach the society. In this paper, there will be a discussion of the concept of the business environment to evaluate the interaction of all environmental factors with business. At the same time, several effects of interaction of all business environments on the evolution of different business theories will also be discussed.
Evaluation of Business Environments
In this context, micro environment describes the relationship between the firm and various driving forces that are assessed by conducting Porter's five force analysis of the industry. By using PESTLE analysis, macro business environment, as well as their effects on business environment, can be assessed (Allen, 2001). The business environment contains different types of environments such as political, economic, social, technological environment etc. that has positive and negative effects on the overall business environment within a country.
In this context, evaluation of different business environments by conducting close and continuous interaction between business and various environmental forces help to identify opportunities and threats to a business in the country. All the macro environmental factors have interaction between each other that creates changes in traditional business theories (Keim & Hillman, 2008). In addition, political as well as economic factors are connected to each other due to impacts of changes in the political environment on the economic condition of a country that affects economic or business development.
At the same time, technological factors or forces such as availability of advanced technologies, ...
The following problem helps with a simulation problem regarding business environments and their effects on the ongoing evolution of business theories.
Identify and discuss each of the five elements in the business environment. Please be very specific/detailed.View Full Posting Details