Many undergraduate business degrees will contain, or even begin with, a course on the business environment.
Businesses and other organisations are affected by a wide variety of external factors. Things that are outside of the business, such as other organisations, the physical environment, government and even specific events can have a significant impact on that business.
Consider, for example if you owned a small cafe. Your immediate physical environment will be made up of things like neighbouring buildings and businesses, roads, utilities and the general public passing by. Your business would rely on having power and light, running water and being accessible by would-be customers.
Local authorities would take an interest in your business, making sure you have the right usage permissions for the building, that your premises and practices were clean and hygienic for serving food to the public and that you paid local taxes like business rates.
Other businesses would want to supply you with ingredients, equipment and other goods and services. Competing businesses would want to try to divert customers away from your cafe. The government want you to pay tax on any profits you make and will try to ensure that you comply with a range of different laws such as employment law.
How might the weather effect your business? What about if a large business park was planned nearby? What if a McDonalds restaurant opened on the next block?
In your business assignments you should consider the IMPACT of external factors on businesses. Consider all of the different stakeholders and events and the degree to which they can provide opportunities or threats to the organisation.
