business environment bcom – what is called a small business environment? see the following continuation

Topic – business environment bcom

A. Understanding the Business Environment

The environment may be interpreted as all elements that can be interconnected and affect each other in certain circumstances and activities. The environmental surroundings consists of physical and nonphysical elements. In the business world, physical elements such as for instance technology, natural conditions and suppliers while non-physical elements could be in the proper execution of community customs, economic conditions and norms.

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business environment bcom

Business contains all activities and businesses to make a profit by giving items and services needed for the economic system. The essence of any business venture may be the exchange between the client and the seller.

From the aforementioned two definitions we can draw the conclusion that the comprehension of the Business Environment are factors that will affect directly or indirectly the management of the business or business activities.

B. Division of Business Environment

business environment bcom – Organizational environments may be distinguished over external environments and internal environments. The external environment contains factors that affect the business from outside the boundaries of the corporation, while the internal environment includes factors within the business that affect the management of the organization.

The external environment of an organization is generally distinguished over the overall environment and a unique environment (also called an activity environment) that features suppliers, customers, competitors, regulators, and unions. Meanwhile, the interior environment includes factors of mission vision, corporate culture, management style, organizational policy, employees, inter-divisional relationships, and informal organizations.

C. External and Internal Environmental Relations with Organizations

External environment as a source for suppliers of resources and consumers of output. Just how much this environment can support an organization may have a direct effect on the organization’s operations and performance. An excellent relationship with suppliers will further ensure a clean influx of needed resources and satisfied customers will support demand for items and services produced.

The interior environment directly affects the degree of capability along the way including all three subsystems in the organizational system, namely input, transformation, and output.

D. General Environment

The general environment includes background conditions in an external environment that will have an important effect on the operational activities of an organization. These environments include:

Economic Conditions

Namely the general condition of the economy related to interest rates, inflation, currency konvertibility, per capita income level, gross domestic policy, monetary and fiscal policy, tax system, population, unemployment, wage level and other related economic indicators.

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Socio-Cultural Conditions

The typical condition of the prevailing social values concerning human rights, customs, norms, values, beliefs, languages, attitudes, behaviors, languages, religions, tastes, aspirations, educational tend and related social institutions.

Legal Conditions – Politics

Namely political ideology, party and political orgnization, forms of government, hokum, government laws and regulations that affect business transactions, agreements with other Countries, patents and trademarks.

Technological Conditions

That is the typical condition of the development and option of technology in the surroundings, such as the advancement of science.

Natural Environmental Conditions

It is just a common condition of nature and physical environmental conditions.

The difference in these related factors will undoubtedly be very noticeable for organizations operating internationally. The conditions in the general environment differ a whole lot in one single Country with another. Successful managers of organizations operating internationally can understand these differences and assist the organization in making the mandatory operational adjustments.

E. Special Environment

A special environment contains organizations, groups, actual individuals with whom an organization must interact in order to operate and thrive. Once called a task environment, this environment is significantly diffent for every single organization, depending on the unique operating situation and domain of the organization.
Important elements in an organization’s specific environment include:


That is, certain groups of people and consumer organizations or customers who buy goods from organizations and or use their services.


Certain human resources, information and finances and raw materials are needed by the business to operate.


Certain organizations offer exactly the same or similar goods and services to the same number of consumers or customers.

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Government agencies or representatives at the local, regional and central levels as hokum penegsk and perturan that affect the operational activities of the organization.

Trade Unions

It can be an organization that gathers workers to fight for the aspirations of its members.

F. Internal Environment

These are factors within the organization that affect the management of operations. The influence of the internal environment on the organization can be briefly ed the following:
Vision is defined as an summary of the problem or portrait of the future (long term) that an organization should go to. For the time being, there is a record in regards to the intent and philosophy of the business or the cause of packing a preexisting orgaization. Each degree of management must fully understand what the vision and mission of the business is.

Corporate Culture

Culture is really a system of mutual values, beliefs, and habits in a organization that interacts with formal structures that produce behavioral norms within the organization. It’s the social and psychological climate of corporate ebuah, and its existence is definitely an open or open culture. In a closed culture the sentness of cendrung is produced by a higher level of management. Managers lack trust in subordinates, lots of secrecy throughout the organization’s ranks, and employees aren’t compelled to be creative or take part in problem solving. Conversely, within an open culture decisions are created at a lesser degree of management, rely upon subordinates or employees is considerable and employees are encouraged to be keatif and a part of problem solving.

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Management style

The attitude and preferentiality of the boss affects what sort of task is carried out. The problem can be if the managerial style of the higher manager is distinctive from the reduced level manager. Generally speaking, lower-level managers have to regulate to the style of the boss.


The policy sets limits as a limitation as a result of creating decisions. Policies developed by lower-level managers should really be aligned with those of higher managers. Policies are often meant to ensure consistency used such as for instance when and how performance is assessed.


Employees vary from individual to individual in various ways such as for example proficiency, attitude, personal goals, and personality. Consequently, an effective manager’s behavior having an employee may not be effective with another employee. In extreme cases employees may vary from each other which makes it extremely difficult to manage as a group. In order to succeed, managers must consider differences, both individual and group.

Informal organizations

Members of the corporation will encounter two kinds of organizations within the business, namely formal and informal.Formal organization is indicated by an information of organizational structures and job descriptions. Informal organizations are evolving relationships and patterns of human interaction within organizations which are not officially defined. Informal organizations might have a confident or negative impact on the span of their activities.

Relationships between units

Managers must properly understand the partnership between existing divisions or departments and must maximize of those relationships. If the work of a division depends on another division in the flow of work, then the manager must realize that cooperation with other divisions is urgently needed if the job will be completed efficiently or the productivity of the division desires to be improved.

G. Environment and Competitive Advantage

According to Schermerhorn (1996), management’s attention in coping with complex and constantly changing external environments is increasingly based on the thought of competitiveness. Competitive advantage is defined as a certain advantage which allows the corporation to handle market and environmental forces much better than its competitors.


No organization is immune to the influence of economic factors. More and more today, competition to look for consumers and get rare resources is getting harder and more merciless. Managers should direct companies to compete and win them, both at a time once the economy is in recession and once the economy is growing.
Therefore today’s managers must understand and follow and be responsive to the development of the entire world economy. Corporate leaders now recognize that competitive excellence must be achieved with full understanding, both on issues and opportunities from the international dimension in management.

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Socio-cultural issues

business environment bcom – Any manager who discusses the excellence of competitiveness must acknowledge the importance of people. This relates to commitment and effort in using organizational resources that may determine the best amount of performance achievement. Good managers realize that talented and diligent workers are necessary to the excellence of long-term competitiveness. A manager should also make good decisions when recruiting and selecting workers from labor sources, both externally and internally.

Legal-political aspects

All efforts produced by managers to pursue competitive advantage must be done in ways that are relating with the expectations of the city, namely to uphold ethics and social responsibility, and to be within the framework of hokum and government regulations that support those expectations.
Managers are also required to learn various laws and regulations at the district, provincial and national levels including related government agencies. Organizations operating internationally will face greater complications because the laws and regulations vary from country to country.

Technology aspects

Today, we live and work in a century of information technology. Particularly for managers, the use of technology and information is really a key theme of daily life. Computer and information technology continues to expand its influence on manufacturing and service processes. People genuinely believe that the excellence of competitiveness through technology will be a key driver for the business in the next few years.
It must certanly be acknowledged that the rapid ness of technology will take about a variety of changes that continue in the wider community. As managers, employees and consumers we should strive to carry on to follow and understand every step of development and change.


Environmental issues rank second highest on social priorities after education. The outcomes of the survey show that the business enterprise world must take an active role in assisting to fix the environmental problems which can be now facing the planet community. Business leaders and pogresive governments recognize that the large number of the world’s industries depend on natural resources for the base of the products it produces. They understand the huge prospect of green marketing concerning the sale of green products.


The company environment has a huge impact on the business’s operations and organizational management. For a manager this becomes both an opportunity and a challenge. The ever-changing environment requires management and organizations to be responsive and progressive.
So widespread and kopleksnya the surroundings faced by way of a company demands professionalism out of every human resource that exists in the company. Managers must always maintain the flow of modernity, mastering technology and information in order to gain a competitive edge.
Organizations that do not wish to constantly learn gradually will experience setbacks and deaths from losing competition meets the demands of the market.

That is expanation about business environment bcom, hopefully useful

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