GLOBAL BUSINESS ENVIRONMENT AN OVERVIEW

A.VEENA M.Com.,PhD(registered) Research ScholarMadras Christian College, Chennai

veenaanbu@gmail.com

INTRODUCTION

Business environment is composed of two words “business” and “environment” Business in simple terms the state in which a person remains busy. Environment refers to the aspects of surroundings Business Environment may be defined as a set of conditions social, economical,

political or institutional that is uncontrollable in nature and affects the functioning of the organization.

Business Environment consist of various micro and macro factors which sets the mission and vision statements of the organization.

Globalization describes the process by which regional economies, societies and cultures have become integrated through a global network of political ideas through communication, transportation and trade.

Traditional businesses are primarily product-centric where as e-businesses focus on customers and adopt a customer-centric approach.

Emerging e-business and mobile technologies and the greater availability of broadband telecommunications have analyzed their transformation into e-enabled organization.

STATEMENT OF THE PROBLEM

Global Business Environment depends on both internal and external factors of the economy which plays an important role in the competitive business field

Impact of both internal and external factors towards the business process and activities leads to mission and vision statements of the organization.

Technological developments paves the way for the development of global business environment.

REVIEW OF THE LITERATURE

Bill Faulkner says," Technology has had a tremendous impact upon the global business environment. As continual enhancements are made, the world continues to ‘grow smaller’ and businesses have further reach than ever ”. “The most important technological development to impact the global business environment is the world of computers relies on internet facility”, he adds.

The WTO claims to be “the only global international organization dealing with rules od trade between nations.” The members negotiate and sign the agreements that may be ratified by their parliaments.

The eminent sociologist, Emile Durkheim made two observations: as society grows more complex, specialized institutions serving social needs develop and proliferate to maintain social stability; and new institutional forms displace old ones only when the old ones no longer manage to serve their original purposes effectively.

According to the IT Encyclopedia whatis.com, the term “Digital divide” describes the fact that the world can be decided into people who do and people who don’t have access to and capability to use modern information technology such as the telephone, television or the internet. Of significance fact is that the Digital divide is real, it exists and it can be seen as a technological opportunity by the organizations rather than as a controversial issue to be debated upon endlessly.

Business people are increasingly turning to the computer to assist them in tracking and managing the voluminous information about their companies and their competitors, as well as general trends in the industry and economy. Data bases are the rich source of statistical and other types of data regarding the economy, industry and the corporate sector.

OBJECTIVES AND RESEARCH METHODOLOGY

To observe the various factors influencing business environment and the impacts over it.

To study how far the technology plays an important role in the global business environment.

To discuss all the characteristics of global business environment. Methodology adopted is the descriptive explanation about global business

environment in current scenario. The data comprises of information from books, e-books and websites and the same is

thoroughly analyzed and correlated.

SCOPE FOR THE FUTURE RESEARCH

Future research can be done in further changes in the business environment and the importance of technological influences in the business environment which leads to various challenges and opportunities for the business organization in the competitive business world.

CHARACTERISTICS OF BUSINESS ENVIRONMENT

Environment is Complex, as it is relatively easier to understand in parts but difficult to grasp in its totality.

Environment is Dynamic, which change its shape and character. Environment is Multi-faceted, as the shape and character of an environment assumes

depends on the perception of the observer. Environment has a Far-reaching impact as the growth and profitability of an

organization depends critically on the environment on which it exists.

TYPES OF BUSINESS ENVIRONMENT

INTERNAL ENVIRONMENT: Internal environment refers to all factors within the organization that impact strength or cause weaknesses of a strategic nature.

EXTERNAL ENVIRONMENT: External environment includes all the factors outside the organization which provide opportunities or pose threats to the organization.

ENVIRONMENTAL FACTORS INFLUENCING BUSINESS

The environmental factors influencing the internal and external environment are as follows:

SWOT Analysis PEST Analysis

SWOT is an acronym for Strengths, Weakness, Opportunities and Threats. PEST is an acronym for Political, Economical, Social and Technological factors. Other factors: Environmental factors and Legal factors.

SWOT Analysis

PEST Analysis

OTHER FACTORS

Environmental Factors includes ecological and environmental aspects such as weather, climate and climaye change, which may especially affect the industries such as tourism, farming and insurance.

Legal Factors includes discrimination law, consumer law, antitrust law, and health and safety law. These can affect how company operates, its costs and demand for its products.

CONCLUSION

Impacts of various factors Technological factors plays a vital role Impact on the growth of the business organizations in a nation.