APPLIED ECONOMICS

• Business Environment

  It includes all internal and external factors that affect the company’s performance and functions. It includes employees, customers, management, supply and demand, business regulations, and competition.
• Environmental scanning is a process used by organizations to monitor their external and internal environments.
• Environmental analysis is a strategic tool in assessing the level of threats or opportunities that might affect the business.
• The internal environment of the organization consists of factors that are controllable by the management.
• There are two elements in the external environment: micro and macro.
• Suppliers can control the success of the business when they hold power.
• Resellers

  Market intermediaries, middleman, or resellers have a great contribution to the delivery of products to the ultimate consumers
• A customer is an individual or business that purchases goods or services.
• Those who sell the same or similar products and services as your organization is called competitors
• 1.  Political factors

  These are about how and to what degree a government intervenes in the economy.
• 1.  Economic factors

  Economic factors have a significant impact on how an organization does business and also how it is profitable.
• 1.  Social Factors

  These include the shared belief and attitudes of the population
• 1.  Technological Factors

  Technological factors affect the management and marketing in three ways: new ways of producing goods and services, new ways of distributing goods and services, and new ways of communicating with target markets.
• 1.  Environmental Factors

  These factors have become important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company
• 1.  Legal Factors

  It includes health and safety, equal opportunities, advertising standards, consumer rights and laws, product labeling, and product safety.
• 1.  Competitive Rivalry

  This force examines how intense the competition currently is in the market, which is determined by the number of existing competitors and what each is capable of doing.
• 1.  Bargaining Power of Suppliers

  This force analyzes how much power a business’ suppliers have and how much control it has over the potential to raise its prices
• 1.  Bargaining Power of Buyers

  This force looks at the power of the consumer to affect pricing and quality.
• 1.  Bargaining Power of Buyers

  This force looks at the power of the consumer to affect pricing and quality.
• 1.  Threat of Substitute Products or Services

  This force studies how easy it is for consumers to switch from a business’s product or service to that of a competitor.