Factors Influencing Businesss Decision Ppt

8/12/2019 Factors Influencing Businesss Decision Ppt

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FACTORS INFLUENCING

BUSINESSS DECISION

Group: 1

Akhil Abraham George

Amala Mathew

Cherry Varghese

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INTRODUCTION

Business environment consists of allthose factors that have a bearing on

the business.

Strategy is defined as establishing aproper firm-environment fit.

Business decisions are conditioned by

two factors:-* internal

* external

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INTERNAL ENVIRONMENT

Value system

The extent to which the value

system is shared by all in the organisation

is an important factor contributing tosuccess. The value system and ethical

standards are also among the factors

evaluated by many companies in the

selection of foreign business partners.

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Missionand objectivesThe business domain of the

company, priorities, direction of

development, business philosophy,business policy etc are guided by the

mission and objectives of the company.

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Management structure and nature

The organisational structure,

the composition of the Board of Directors,extent of professionalisation of

management etc are important factors

influencing business decisions.ss

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Internal power relationship

It includes the factors like the

amount of support the topmanagement enjoys from different

levels of employees, shareholders and

Board of Directors

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Human resources

The skill, quality, morale,

commitment, attitude etc contributes

to the strength and weakness of an

organization. The organisational

culture and overall environment have

bearing on them.

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Company image and brand equity

The image and brand

equity of the company matters whileraising finance, forming joint venturesor other alliances, soliciting marketintermediaries, entering purchase orsales contracts, launching newproduct etc

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Other factors

It includes:-

* physical assets and facilities

* R & D and technological capabilities

* marketing resources

* financial factors

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EXTERNAL ENVIRONMENT

External business environment

consists of:-

- micro environment- macro environment

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MICRO ENVIRONMENT

Also known as task environment andoperations environment.

They have a direct bearing on the

operations of the firm. Micro environmental factors are more

intimately linked with the company.

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Suppliers

Reliable source/sources of supply is

important to the smooth functioning of

business.

Many companies give high importance

to vendor development.

Multiple sources of supply helps toreduce many risks.

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Customers

A company have different categories

of consumers like individuals,

households, industries etc.

The choice of the customer segments

should be made by considering a

number of factors including therelative profitability, dependability,

stability of demand etc.

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Competitors

Competition has several dimensions-

Desire competition

Generic competition

Product form competition

Brand competition

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Marketing intermediaries

They are the firms that aid the

company in promoting, selling and

distributing its goods to final buyers.

They include agents, merchants,

warehouses, advertising agencies,

media firms etc. They connect the company with the

consumers.

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Public A public is any group that has an

actual or potential interest in or impact

on an organisationsability to achieveits interests.

It includes media publics, citizens,action publics and local publics.

Some publics are threats to businessand some other are opportunity for thebusiness.

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MACRO ENVIRONMENT

Also known as general environment or

remote environment.

They are more uncontrollable thanmicro forces.

The success of a company depends

on its adaptability to its environment.

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The important factors include:-

Economic environment

Demographic environment

Technological environment

Natural environment

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THANK YOU !

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Factors Influencing Businesss Decision Ppt

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