02.11.09 Interdependence of Business and its Environment 09

02.11.09 - business operates and can be divided into two broad categories the internal business environment and the external business environment

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What does interdependence mean? In business, Interdependence means relying on other people or businesses to help produce something. No business operates in isolation. What happens in the larger business environment may have a direct influence on many other firms. Give two examples: If interest rates increase, then some businesses may not be able to afford new equipment If a new competitor enters the market, this may reduce the existing businesses market share. All business decisions about how and what to produce are affected by the environment in which the business operates. A business needs to be fully aware of the business environment in which they operate so they can better coordinate all the activities. What is the business environment? The business environment refers to the surrounding conditions in which the
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Unformatted text preview: business operates and can be divided into two broad categories: the internal business environment and the external business environment. External Environment Operating Environments Internal Environment The Business Copy the information from page 22. The Internal Business Environment: This is sometimes called the micro environment, and it includes all those things over which the business has some degree of control, such as employees, legal structure, managers and management styles. The External Business Environment: This is also known as the macro environment, and it includes those things over which the business has very little control, such as economic conditions, government policy, competitors and technology....
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This note was uploaded on 08/11/2009 for the course BUSINESS - taught by Professor - during the Summer '09 term at École Normale Supérieure.

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02.11.09 - business operates and can be divided into two broad categories the internal business environment and the external business environment

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