Week 3 & 4 environment

Business and Management is essential consider the environment in terms of internal, competitive and external. Environment is the surroundings in which a person, animal, plant lives or operates. This is a factor of internal that influences its activities and choices, particularly human resource, which is the behavior of the employees. Factors that are also considered part of the internal environment include the leadership, organizational structure, technology and so on.

Leadership is a one person who can enlist the aid. In a company, leadership can be greatly improved the quality of employees, as human resource is a very difficult to deal with them. For instance, culture and region are probably had productivity barrier. However, it also needs to satisfy for everybody in order to prevent employee to resign a job.

In terms of internal structure, it is necessary to have an organize structure behind the success. This is due to be good communication between top manager and labor. There are two different type of structure, which is tall and flat. Tall is more likely to have less work since they have a lot of manager to cooperate. But it will be detrimental to labor for receiving message from the top manager. It will eventually affect the cost of production. On the other hand, flat is probably elastic for communicating as they have only one manager. So that it is more close relationship to each other. But it will be very hard working if they have no manager. Furthermore, technological advances having a positive effect for business to expand, people start relying on the machines instead of human work. The profitability also greatly increases with the technological improvement.

 Factors of organisation operate that affect its decision-making. These factors include customers, entrants, suppliers, and products. Supplier normally provides the resource from land. Manufactories need to have raw materials and machineries before produce goods and services. However, substitute products are more likely to attract people to buy it, since it is fresh. This is also benefit for environment. For example, bus can be substitute car. As a result people can save more money. Furthermore, we ought to provide the cheaper price in order to keep selling from the customer. This is due to have higher profit, because products are not selling once only for one buyer. Moreover, entrants are a commodity that enters competition with goods and services. If the product cannot distribute, it will be in trouble, because new entrants might not have access to the market. This is due to loss profit.

As regarding macro environment, this is the major of external that influence an organization's decision making. It is involved the PESTEL which is political, economic, sociocultural, technological, environment and legal.

Environmental laws are important to consider from different places, as some countries may have trade barrier such as taxation. However, economic is depending on the general situation, For example, inflation. Inflation is the general level of prices rising for goods and services. So that inflation will badly effect business people for export and import. Socio cultural environment can be defined as a combination of social and cultural factors in a population. Changes in lifestyle are a very good example. The business people ought to know what the local people wants and needs. Then focus on the main products in order to sell more in other countries. Technological can be improved in technical processes that increase productivity. Technological advances having a positive effect for communicating with other countries as well as easy to make decision. Legal is based on the law that people need to follow the rules in a game. Laws can protect society because some people are uncontrolled to use products such as drinking alcohol. Law should not be allowing people who are under 18 years old to drink an alcohol. This is not only detrimental individual health, but also have accident from occurring. As far as we concern that environment is going to be harmful for every body in the whole world, because people are selfish for using un-renewable sources such as oil. So it is significantly damage the environment. So business people should consider the green energy. For example, electronic car can replace a traditional car. This is benefit for society.

To sum up, micro and macro are essential to consider if you want to be a successful business people, because another countries are very complicated. If we know how to prevent this risk, it would possible to have more profit.