The specific environment is the part of the environment that is directly relevant to the achievement of an organization’s goals. It includes different stakeholders like suppliers, customers, competitors, and marketing intermediaries. Specific environment is individualistic in approach and treats each organization in different way. So it has unique characteristics and changes with conditions prevailing in surroundings. It implies that the strategists or makers of decision should design those strategies that are matching to the needs of external environment.
It is the responsibility of the people to protect their environment and providing environmental education gives them the opportunity to understand the environment and the factors that lead to degrading of the environment. Environmental education gives information on how simple changes in daily life can make a huge difference to the environment. Hence, environmental education is required by every individual through a continuous and lifelong process for saving the environment. The environment consists of fauna and flora like grasslands, forests etc. which are necessary for maintaining the lifecycle of the ecosystem.
It is generally characterized by metabolism, growth, organization, adaptation, response, and reproduction. The part of the Earth where living organisms occupy is referred to as the biosphere. Living organisms have distinct features and traits that make them adapt to specific environments.
- Air also contains a variable amount of water vapor and suspensions of water droplets and ice crystals seen as clouds.
- The complexity is more if the number of unfavourable or unbalancing forces is more and vice versa.
- Even partial logging in a forest can destroy enough trees to change the forest structure dramatically.
- The rebuilding of infrastructure and dwellings requires concrete, steel, and other materials.
- The altered form of the economic and physical environment – artificial environment, are seen as two different aspects of the man-made environment.
The political system prevailing in a country decides, promotes, fosters, encourages, shelters, directs and controls the business activities of that country. Stable, honest, efficient and dynamic political system ensures political participation of people, and assures personal security to the citizens. Political system comprises three vital institutions, viz., legislative, executive or government and judiciary. The internal environment consists of conditions and forces within an organisation that affect the organisation’s management.
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These factors are treated as given and business enterprise is expected to operate under a particular set of environmental system. These factors are generally uncontrollable and beyond the control of business enterprises. But progress, success and survival largely depend upon their capacity and ability to adapt successfully to environmental changes available in surroundings of a business.
Human Impact on the Environment
Japanese concrete manufacturers, steelmakers, and construction companies are likely to be very busy in the years ahead. In the late 1990s, for example, Jared Fogle’s growing fame created an opportunity for Subway to position itself as a healthy alternative to traditional fast-food restaurants. These two firms are much smaller than Subway, but they could grow to become substantial threats to Subway’s positioning as a healthy eatery. Geographical environment is the natural environment and contains all the components of nature such as mountains, rivers, land, water, deserts, storms, etc.
Concept of Business Environment
With increased economic “interconnection”, deep-seated political changes, business of MNCs and global brands we are moving towards a global village market. Business environments are changing, and organizations need to survive and grow in changing environments. It needs to have a reserve of raw materials to keep the wheel of production revolving in times of https://1investing.in/ scarcity. However, overstocking of raw material blocks money, and also increases the carrying cost. But it is for the organization to respond to these perspectives in proper way otherwise its survival and growth will be affected. Micro dimension of complex environment is quite easily understandable but they are difficult to grasp in its macro-frame work.
The rebuilding of infrastructure and dwellings requires concrete, steel, and other materials. Japanese concrete manufacturers, steelmakers, and construction companies benefited in the wake of this tragedy. The environment helps in generating the food chain and hence the complex establishment of food web occurs.
The 2018 Global Risks Report identified risks in the environmental category that also affect industries and companies—as well as continents and countries. These risks were ranked higher than average for both likelihood and impact over a 10-year horizon. The Republic of the Marshall Islands has more over 1,100 low-lying islands on 29 atolls that include island nations with hundreds of thousands of people.
Subway’s move to cut salt in its sandwiches, for example, may lead other fast-food firms to revisit the amount of salt contained in their products. A few organizations wield such power and influence that they can shape some elements of the general environment. However, most organizations simply react to major technological trends, for example, the actions of firms such as Intel, Microsoft, and Apple help create these trends. Some aspects of the general environment, such as demographics, simply must be taken as a given by all organizations. Overall, the environment has a far greater influence on most organizations than most organizations have on the environment.
Demographic factors include age, sex, family size; family life cycle, education, occupation, income, religion, race, and nationality. Demographic factors influence (affect) all industries either positively or negatively. Micro environment is concerned with immediate environment of business organisation. Macro environment deals with external environment in which business organisation operates. External environment incorporates all the factors which are outside the organization and influence the ability to achieve organizational goals. It is generally defined as all factors outside the organization and that are relevant to its operation.
Components of Environment
Plants absorb sunlight and through the process of photosynthesis convert the light energy into chemical energy that is then released and used by the living organisms for their activities. It is important to protect the environment for leading a healthy life with fresh air, clean water, and safe surroundings. If the environment gets polluted then water and air gets polluted the most and it leads to health problems for all living organisms on this planet hence it is necessary to protect the environment from different types of pollution. The physical environment refers to non-living attributes such as air, water, soil, climate, heat, light, noise, housing, and radiations. On the other hand, the biological environment refers to all types of flora, fauna and micro-organisms. Executives must also realize that virtually any environmental trend or event is likely to create opportunities for some organizations and threats for others.
The major components of the physical environment are discussed in the articles atmosphere, climate, continental landform, hydrosphere, and ocean. The relationship between the principal systems and components of the environment, and the major ecosystems of the Earth are treated in the article biosphere. The significant environmental changes that have occurred during Earth’s history are surveyed in the article geochronology. The pollution of the environment and the conservation of its natural resources are treated in the article conservation. Hazards to life in the biosphere are discussed in the articles death, disease, and immune system.
Globalisation was also influenced by international organisations like the World Bank, the IMF, and the WTO, devoted to increasing trade and development. In a environment consists of volatile business environment, the extent of change is never predictable. An organization needs to watch the speed and direction of the environmental change.
However, level of interaction may differ from organization to organization and the impact can vary overtime. An internal environment would be the internal milieu of a multicellular organism. Maintaining the internal environment of an organism through homeostasis is crucial to the organism’s survival. An external environment refers to the environment outside of the organism. It results in forms of pollution, depletion of forest cover, over-dependence on energy-consuming technologies, and exponential growth of population that damage the ecology. The degradation of ecology takes place when the environment has been destroyed or the important assets or components are depleted.