Chapter 3 Environment of__ Enterprise.pptVIP

Learning objectives: 1. Describe three basic kinds of environments within which enterprises exist. 2. Understand the new characteristics of environment changes enterprises have to confront today. 3. Discuss how enterprises respond to these changes in their environment. 1.The first step of the strategy management process is environmental analysis. Three distinct levels of environment: General environment Specific environment Internal environment (1)The General environment The general environment is the level of external environment that contains these components having a broad and mutual effect on all the enterprises in a country. It normally comprises of : Economic Environment Political and Legal Environment Social and Natural Environment Technological Environment Economic Environment The economic environment consists of forces that influence market operations, including overall economic activity, commodity prices, interest rates, inflation, wages, taxes, government policies and economic systems. Economic issues like these can significantly influence the environment in which a company operates, and the difficulty the enterprise experiences in attempting to reach its objectives. For example, it should be somewhat easier for a enterprise to sell its products at higher prices if potential consumers in the environment are earning relatively high wages and paying relatively low taxes than if these same potential customers are earning relatively low wages and have significantly fewer after-tax dollars to spend Political and Legal Environment The political environment is related to government affairs, including The type of government in existence Government’s attitude toward various industries Lobbying efforts by interest groups Progress on the passage(条例) of laws Political party platforms(政纲) and candidates The legal environment consists of legislation, regulation and litigation. There are four enduring trends in this environment, all working to constr