Chapter 4
THE BUSINESS ENVIRONMENT
, ➢Understand the meaning of environmental change
➢Explain the composition and characteristics of the business
environmental model
➢Discuss each of the sub-environments of the environmental
model
Learning ➢Explain how each of the environmental variables in the
outcomes micro-, market and macro-environments can influence an
industry or individual business
➢Explain the difference between opportunities and threats in
the external environment
➢Discuss environmental scanning as a means of managing
change in the business environment.
, The business and environmental change
Change is the only constant reality of our time. Environmental variables are constantly changing the
environment in which businesses operate. New opportunities and threats emerge daily and management
must adapt to changes to ensure survival in a competitive environment. As the planet's environment
changes, so do its effects on the business world. Environmental changes impact business practices. From
natural resources to supply chains, to logistics, to energy sources, to customer behaviors and
demographics, businesses must adapt or be left behind. Further, climate change requires business adopt
sustainable practices in order to remain economically viable and environmentally responsible
Characteristics of the business environment:
➢Environmental factors or variables are interrelated
➢Increasing instability and change
➢Environmental uncertainty
➢Complexity of the environment
THE BUSINESS ENVIRONMENT
, ➢Understand the meaning of environmental change
➢Explain the composition and characteristics of the business
environmental model
➢Discuss each of the sub-environments of the environmental
model
Learning ➢Explain how each of the environmental variables in the
outcomes micro-, market and macro-environments can influence an
industry or individual business
➢Explain the difference between opportunities and threats in
the external environment
➢Discuss environmental scanning as a means of managing
change in the business environment.
, The business and environmental change
Change is the only constant reality of our time. Environmental variables are constantly changing the
environment in which businesses operate. New opportunities and threats emerge daily and management
must adapt to changes to ensure survival in a competitive environment. As the planet's environment
changes, so do its effects on the business world. Environmental changes impact business practices. From
natural resources to supply chains, to logistics, to energy sources, to customer behaviors and
demographics, businesses must adapt or be left behind. Further, climate change requires business adopt
sustainable practices in order to remain economically viable and environmentally responsible
Characteristics of the business environment:
➢Environmental factors or variables are interrelated
➢Increasing instability and change
➢Environmental uncertainty
➢Complexity of the environment
