BUSINESS ENVIRONMENT

Business Environment

Business Environment

Introduction

Business environment encompasses all those factors that affect a company's operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments (Ian & Chris 2009, p.435). However, the business environment tends to differ for each organization depending upon its business. An organization cannot operate free from any sort of influences. The influences can alter the way an organization intends to operate and the way organization actually operates. Different organization caters to the pressure differently. For example a Business to business organization will behave differently to the pressure exerted by the stake holders. Similarly a business to consumer organization will behave differently to the pressure exerted by the stake holders. Business environment further tends to be divided into external and internal environment.

Internal environment tends to encompass those factors which an organization can control. However, the external environment tends to include the factors which are beyond the control of the organization. Thus, the internal environment tends to include the factors such as organization's culture whereas the external environment tends to include the laws placed by the government. However, in the context of this paper we tend to analyze the influence of the stakeholders along with relationship between the b=nature if the business and the local, national and global environments.

Discussion

Influence of Stakeholders

Before moving on further in the course of this paper it is essential to understand who the stakeholders are so that their influence can be decoded along with its implications. Stakeholder is an individual or group of people who are interested in your project and will be affected positively or negatively by it. In fact, the "interested" is not only one who has an interest in the project to succeed, but also includes all those people or groups who are not the project should therefore be negatively affected by it. Perhaps, in normal life, away from that project management skills, who take charge of projects, identify people forget that over time, eventually will bring problems, invent obstacles will "tripping" and will possible because the project did not come to fruition. If one is a part of a select group of people who lead projects and are aware of the importance of identifying, remember to also look into the Organization. Thus, if a project is to progress and successfully complete, there is a need for the support of as many stakeholder (Stakeholder) possible.

Different organization tends to have different interpretations regarding the idea of stakeholders. Some organizations tend to view the stake holders as the people who tend to provide the finance. Whereas, in some organizations stake holders are viewed as the individual to the group of people who can provide expertise related to a certain topic, project or product. Any business who intends to expand needs to do so with the support of the stakeholders. However, stakeholders can be categorized into two layers. First are the internal stakeholders and the other being the external ...