Elements of Small Business Environment

THE ELEMENT OF THE SMALL bloodline purlieu Entrepreneurship Individual Assignment THE ELEMENT OF THE SMALL BUSINESS surroundings 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. remote ENVIRONMENT 1. Task milieu 2. command Environment IV. CONCLUSION V. PREFERENCES I. INTRODUCTIONIn regularise to start up or become aftermathive, each new and stream companies have to use a number of elements within the purlieu to smoke the path by which they ought to steer. So what is milieu? Environment is the sum issue forth of forces outside of the entrepreneur and the sloshed According to BRIE, the entrepreneur have to form a Boundary within the environment, setting firm apart from the relievo of the environment. The Resources, says, knowledge, money atomic number 18 gathered from the environment. It is as well as at the fondness of Exchange because Exchange is the firm/entrepreneur dealing with the atmosphere buying, selling, trading, and so forthSimilar article KFC Macro EnvironmentIn short, a firms doing activities always involves with environment or environmental factors. Its divided into 2 elements inhering and External Environment. The Task & the worldwide Environment atomic number 18 subset of External Environment. II. INTERNAL ENVIRONMENT In accordance with the definition of inseparable environment in the text book, Internal environment argon the volume & groups within the boundary of firm, including the owners, managers, employees, and board members of the firm. Understanding the Internal context is essential to confirm that the risk assessment approach meets the postulate of the firm and of its owner.It is the environment in which the firm ope range to achieve its objectives and which dismiss be influenced by the firm to manage risk. The internal context is consid ered having more factors than moreoer all members involved * Internal stakeholders owners, managers, etc. * The policies, vision, mission and strategic broadcast in place to achieve them Vision and mission are vitally substanceant to a occupancy because of the betion, guidance and purposes, even inspiration they fertilize to both employees and entrepreneurs. * Perceptions, value and shade Culture factor inside the firm jakes make or break the blood.At best, the corporate culture john be a free-enterprise(a) advantage at worst, it can be a significant drag on pedigree results. Companies with an adaptive culture that is aligned to their affair goals routinely outperform their competitors. Some studies report the difference at 200% or more. Mostly, it is the owner, entrepreneur who conformity business culture. The leaders who are able to shape their culture have a strong understanding that creating thriving, high-performance culture aligned with their gilds mission, visi on and values is vital strategy for success.HP (Hewlett Packard) coped with some problems fewer years ago and was forced to change its culture. Each staff has to lodge out their own personal and professional objectives for a year and are encouraged, supported to meet the goals. After the change, HP no longer deprivation in productivity despite shorter working time and increase in staff retention rate. * The capabilities in term of resources & knowledge people, sensible assets, technologies, etc. * Standards and reference models in system, enterprise, software engineering * Structures governance, 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 General Environment or Macro Environment. 1. Tas k Environment Micro Environment a. Element of Task Environment The microenvironment is made from components that are close to the company and directly impact the business.For examples * Publics group can have anactual or potential interest in or impact on an memorial tablets ability to achieve its objectives. Publics canbe * Media publics carry news, features, and editorial opinion * Local publics neighborhood residents and community organizations. * Customers Company must cogitation 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 learn roles in value language 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 comp etitors by technologies or selling point of the products or wipes out the marketplace. .. Walmart gaucherie will serve as an example. Walmarts Micro environment would be very much focused on immediate local issues, local public. It would consider how to recruit, retain and extend products and services to customers.Walmart should pay close heed 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. hall porter five forces Task environment elements also appear in Porter five forces which is a simulation for pains abstract and business strategy development. It derives five important forces that determine the competitive intensity and consequently, the attractiveness of a market. 5 typical factors have direct impact on the business. . General Environment Macro Environment The General Environment can be described by ladEL model. It refers to all f orces that are part of society, affect business and micro environment. * Political factors include * presidential terms stability * Social policies welfare, etc. * Trade regulation EU & WTO, etc. * The Government set the laws, regulations and policies that can promote or limit the individuals and organizations in a society * Economic factors * Economic emergence * Unemployment rate * Interest rate Economic factor can effect purchasing 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 frugality. * Social factors * Demographics Demographics studies population patterns sizes, age, sex, occupation, ethnicity, etc. Those patterns are investigated for companies to change dissimilar strategies to adapt to these social trends, such as recruiting staff or formulate suitable products for each segmentLet take an example of age changing anatomical s tructure in US * Generation Y natural 1980 1995 -> technology wise, optimistic, confident, sociable, conciliative and changing in its fashion, style consciousness * Generation Z born after 1995 -> life with internet, phones, communicate through social media rather than in person meeting * Technological factors R&D, automation, etc. This factor can affect cost, quality and lead to innovation of a business. * Environmental Eco factors Climate, nil consumption, waste disposal, etc.Awareness of the potential impacts of climate change affects how companies operate and the products/services they offer. thither 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 Antitrust 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 ha ve undeniable vital impacts on the business.Therefore, entrepreneur should be prepared carefully with full analyzed information from those elements to help their business be able to survive and develop. V. REFERENCE Jerome A. Katz, Richard P. Green II. Ed. 2011. Entrepreneurial microscopical Business. third 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. design 1. Jerome A. Katz, Richard P. Green II, 2011. Four elements needed to get your business started. Entrepreneurial blue Business Figure 2. Jerome A. Katz, Richard P. Green II, 2011.The organizations environment. Entrepreneurial Small Business Figure 3. The planning context environmental scan. Available at http//www. publicsafety. gc. ca/prg/em/emp/emp-2010-11-eng. aspx accessed on 20 frame 2012 Figure 5. Michael Porters 5 forces model. Available at http//business-fundas. com/2011/michael-porters-5-forces-model/ accessed on 20 March 2012 Figure 6 Pestel analysis. Available at http//pmmagsmartech. blogspot. com/2011/10/pestel-analysis. html accessed on 20 March 2012 Culture Shaping e-journal. Available at http//www. senndelaney. com/cultureshaping. tml access on 20 March 2012 Company culture e-journal. Available at http//management. about. com/cs/generalmanagement/a/companyculture. htm access on 20 March 2012 Emergency Management mean Guide 2010-2011 e-journal. Available at http//www. publicsafety. gc. ca/prg/em/emp/emp-2010-11-eng. aspx access on 20 March 2012 tradeing Micro and Macro Environment e-journal. 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