English for specific purposes 1 topic business environment

This environment encompasses economic, social, technological, political, and environmental factors that directly impact business strategies and operations.This overview delves into the c

Hanoi, 2023

MEMBER EVALUATION

37 Nguyễn Thị Mai An 21D220152

38 Đinh Minh Anh 21D220153 1.5 Actual state

39 Ngô Mai Anh 21D220154 Powerpoint + Introduction

MỤC LỤC

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MEMBER EVALUATION 2

INTRODUCTION 4

PART I: BUSINESS ENVIRONMENT 5

1.1 What is the “Business Environment”? 5

1.2 Classification of business environment 5

1.2.1 Micro Environment 5

1.2.2 Marco Environment 6

1.2.3 Internal Environment 8

1.3 The importance of Business Environment 9

1.4 Factors affecting Business Environment 10

In today's fast-paced global landscape, the business environment wields immense influence over the success and sustainability of companies worldwide This environment encompasses economic, social, technological, political, and environmental factors that directly impact business strategies and operations.

This overview delves into the complex business environment, focusing on its significance and impact We'll explore key elements affecting businesses, and discuss corporate social responsibility (CSR) and sustainability, as they've become crucial in shaping a company's reputation and success.

Throughout this discussion, we'll navigate the challenges and opportunities in the business environment, helping businesses formulate profitable, ethical, and socially responsible strategies Join us as we explore the pivotal role of the business environment in shaping the future of commerce.

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PART I: BUSINESS ENVIRONMENT1.1 What is the “Business Environment”?

The business environment is all the components that affect a business These include both internal factors, like employees and resources, and external factors, like customers and markets Each of these contributes to a company's working environment and can influence how the business functions.

1.2 Classification of business environment

1.2.1 Micro Environment

Micro environment refers to the environment that is in direct contact with the company and affects the routine activities of business straight away It is a collection of forces or factors that are close to the organization and can influence the performance as well as the day-to-day activities of the firm The six components of the microenvironment are the company, Suppliers, Marketing Intermediaries, Competitors, General Public, and Customers.

- The Company:

Various groups in an organization like the top management, finance, operations, human resourcing, research and development (R&D), accounting, etc need to be taken into account by the marketing management for designing the marketing plans Marketing managers need to work closely with them as that will help them to make decisions with broader strategies and plans With the marketing team taking the lead, other departments like manufacturing, finance, legal, and human resource teams take the responsibility for understanding the customer needs as well as creating customer value.

- Suppliers:

The suppliers are an important part of an organization’s overall customer value delivery network They are the ones who provide inputs to businesses like raw materials, parts, cutting tools, equipment, etc The quality and reliability of vendors are essential for the smooth functioning of the business of any organization Marketing managers must have control over the suppliers’ availability and costs Any shortage or delays of supplies, in terms of natural disasters or other events, can cause damage to sales in the short run and lead to customer dissatisfaction in the long run.

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- Marketing Intermediaries:

The marketing intermediaries are also an important component of a company’s overall value delivery network They include those individuals or firms who help the company in the promotion, sales, and distribution of its goods to the final buyers Examples include middlemen (agents or merchants) who help the company find customers, physical distribution firms such as warehouses or transportation firms that help the company in stocking and moving goods from their origin to the destination, and marketing service agencies such as market research and advertising firms.

- Competitors:

Competitors are rivals who compete with the organization in the market and resources as well According to the marketing concept, a company needs to provide greater customer value and satisfaction than its competitors, in order to be successful Marketers must not only try to simply adapt to the needs and demands of target customers but also try to attain a strategic advantage against the competitors by positioning their products strongly in the market.

- General Public:

The public refers to the group of people who have an actual or potential interest in a company’s product or who can have an impact on the organization's ability to achieve its objective There are seven types of publics identified in a company’s marketing environment which include financial publics, media publics, government publics, citizen-action publics, internal publics, local publics, and general publics.

- Customers:

The most important actors in the company’s micro-environment are its customers The whole value delivery network aims to engage the target customers and create strong relationships with them There are five types of customer markets that companies might try to target These include consumer markets, business markets, government markets, reseller markets, and international markets.

1.2.2 Marco Environment

The macro-environment refers to external factors that significantly impact an organization's operations and success Although these factors are typically beyond an

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organization's control, they can have a significant impact on organizational performance and strategic decisions Understanding the macro environment is important for companies to identify opportunities and threats in the external environment and adapt their strategies accordingly The macro-environment consists of various components, including:

- Economic factors:

Economic conditions such as inflation rates, interest rates, economic growth, and exchange rates can have a significant impact on an organization's operations Changes in these factors can affect consumer purchasing power, production costs, and market demand, thereby affecting a company's performance Sociocultural factors: Sociocultural factors include societal values, attitudes, beliefs, and lifestyle trends that can influence consumer behavior and preferences Factors such as cultural norms, demographics, social values, and lifestyle choices play an important role in shaping market demand and consumer expectations.

- Technological factors:

Technological advances and innovations can revolutionize industries, create new opportunities, and change how organizations operate To stay competitive, companies must keep abreast of technological developments and leverage new technologies to improve efficiency, product/service delivery, and customer experience.

- Political Factors:

Political factors include government policies, regulations, and stability that may affect business operations Other factors, such as tax regulations, trade agreements, and government regulations, including changes in the political environment, can have a significant impact, particularly on companies operating internationally.

- Environmental factors:

Environmental factors include ecological and sustainability aspects Businesses need to be aware of consumer expectations regarding environmental impact, climate change, resource scarcity, and sustainability Environmental regulations and consumer preferences for environmentally friendly products/services can influence business practices and market demand.

- Legal Elements:

Legal elements refer to the laws and regulations an organization must comply with in its business operations These include labor laws, consumer protection regulations, intellectual 7

property rights, and industry-specific regulations Complying with legal requirements is important to avoid legal problems and maintain a good reputation.

1.2.3 Internal Environment

An organization's internal environment includes controllable factors that directly impact the organization's operations, strategy, and overall performance Understanding the internal environment is important for organizations to leverage their strengths, address weaknesses, and capitalize on opportunities The main components of the internal environment include:

- Organizational Structure:

An organization's structure defines its hierarchical levels, reporting lines, and division of responsibilities It determines how tasks are delegated, communication processes, and decision-making processes Effective organizational structures foster efficiency, coordination, and collaboration among employees Corporate Culture: Corporate culture includes the shared values, beliefs, attitudes, and norms within an organization It affects employee behavior, work ethics, and overall organizational performance A positive, supportive culture can improve employee morale, productivity, and engagement.

- Resources:

Resources include tangible and intangible assets owned by an organization, such as B Financial capital, human capital, physical infrastructure, and intellectual property The availability and effective use of resources play an important role in determining an organization's competitiveness and ability to achieve its goals Skills and Abilities: Employee skills, knowledge, and expertise are important internal factors Employee skills such as technical skills, creativity, problem-solving skills, and adaptability determine a company's ability to innovate, provide quality products/services, and respond to market changes.

- Leadership and Management:

Effective leadership and management practices are essential to guiding and aligning an organization toward its goals Strong leadership ensures strategic vision, effective decision-making, and efficient resource allocation Good management practices promote employee coordination, motivation, and goal alignment Financial performance: The financial performance of an organization, including sales, profitability, liquidity, and solvency, is an

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important internal factor It reflects an organization's financial health, and ability to generate profits and fund future growth initiatives.

By analyzing and understanding the macro and internal environments, companies can develop strategies that align with external opportunities and internal strengths, while addressing external threats and internal weaknesses This comprehensive understanding enables companies to make informed decisions and adapt to dynamic business environments.

1.3 The importance of Business Environment

The business environment refers to the external factors and conditions that affect a company's operations, performance, and ability to thrive It includes factors such as the economy, market conditions, government policies, social and cultural factors, technology, competition, and legal framework The importance of the business environment can be summarized as follows:

- Impact on opportunities and threats: The business environment plays a crucial role in identifying opportunities and threats for a company It helps businesses understand market dynamics, consumer demands, and emerging trends, allowing them to capitalize on opportunities and foresee potential threats.

- Influence on strategic planning: The business environment helps shape a company's strategic planning process By analyzing the environment, businesses can evaluate their competitive position, assess market conditions, and make informed decisions about products, services, pricing, distribution channels, and target markets.

- Regulatory compliance: The business environment encompasses numerous regulations and laws that businesses must comply with Understanding the legal framework and government policies helps businesses avoid legal disputes, penalties, and reputational damage.

- Impact on profitability and growth: The business environment significantly affects a company's profitability and growth prospects It influences factors such as market size, demand, competition, access to resources, and cost of production A favorable business environment can lead to increased sales, market share, and profitability.

- Sustainability and social responsibility: The business environment encompasses societal and environmental factors Businesses that are aware of social trends, customer

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expectations, and environmental sustainability issues can develop responsible corporate strategies, enhance their reputation, and attract environmentally conscious consumers.

- Competitive advantage: Understanding the business environment helps businesses identify their unique strengths, weaknesses, opportunities, and threats By working proactively to align their operations, products, and services with the environment, companies can gain a competitive advantage over rivals.

- Risk management: The business environment helps businesses identify potential risks and challenges By anticipating and preparing for these risks, companies can mitigate their impact, develop contingency plans, and enhance their resilience.

In summary, the business environment is crucial for businesses' long-term success and sustainability Understanding and adapting to the external factors that influence a company's operations and performance helps businesses seize opportunities, navigate risks, and remain competitive in a dynamic and evolving marketplace.

1.4 Factors affecting Business Environment

The business environment is influenced by a wide range of factors that can have a significant impact on how a company operates and its overall success These factors can be broadly categorized into two main categories: internal and external Here are some of the key factors that make up the business environment:

1.4.1 Internal factors

- Management and Leadership: Management and leadership significantly impact the business environment Effective management ensures operational efficiency, compliance with regulations, and the sustainable use of resources, which can positively affect an organization's environmental footprint Leadership, on the other hand, plays a pivotal role in shaping a company's culture, promoting ethical and socially responsible practices, and driving innovation in eco-friendly initiatives The combined influence of strong management and leadership can create a more environmentally conscious, sustainable, and competitive business environment.

- Corporate Culture: Corporate culture has a profound impact on the business environment It shapes the values, beliefs, and behaviors of an organization, influencing how employees interact, make decisions, and prioritize objectives A positive corporate culture fosters ethical practices, teamwork, and employee engagement, ultimately enhancing 10