bgmt final project - BGMT 110 Final Paper The Dynamic...

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BGMT 110 Final PaperThe Dynamic Business EnvironmentThe dynamic business environment is an unpredictably fast changing environment that isdifferent for each individual business.It has two components: internal environment andexternal environment.The internal environment includes environmental factors such as man,material, money, machinery and management.Namely these are the conditions, events, andfactors within an organization that influence its activities and choices, particularly the behaviorof the employees. Factors that are frequently considered part of the internal environmentinclude the organization's mission statement, leadership styles, and its organizational culture.Factors beyond the control of the business are included in the external environment.Thesefactors could be government and legal factors, geo-physical factors, political factors, socio-cultural factors, or demo-graphical factors.These factors can then be broken up into two typesof environments:1) Micro/Operating Environment - The environment which is close to business and affects itscapacity to work.It consists of Suppliers, Customers, Market Intermediaries, Competitors andPublic.Suppliers must be reliable and businesses should have multiple suppliers. They should notdepend upon only one supplier.Having a single supplier will mean you are only able to dealwith one company to provide your basic raw material therefore you will be solely reliant on onlythem and you don’t want to paint yourself into a corner if your only supplier is unable to deliver.Customers are regarded as the king of the market. Success of every business depends upon thelevel of their customer’s satisfaction. Customers are becoming increasingly more demanding,less tolerant and very critical when not having their expectations met, therefore, customersatisfaction is key to any successful business.As a result the power has now shifted to thecustomer and if they feel you cannot satisfy their expectations they will simply find someonewho will.Market Intermediaries work as a link between business and final consumers. One of the mostfamous would be Wal-Mart.They act as a type of distribution intermediary between thecustomer and the distributors.Places like these are important as they provide a hugeconvenience to consumers by putting a vast number of products in one place.I for one amguilty of using Wal-Mart almost exclusively for my groceries and everyday supplies because it isclosest, cheapest and I can get almost everything I need at one place.I imagine that a lot ofconsumers feel this way as convenience has become a much more valuable commodity as workhours get longer and family time and free time get shorter.Competitors affect every move that a business makes. Businesses have to adjust themselvesaccording to the strategies of their competitors. Knowing who your competitors are, and whatthey are offering, can help you improve your products, services and marketing. It will enable youto set your prices competitively and help you to respond to rival marketing campaigns with yourown initiatives.

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