QUESTION NO.

1
The Buisness Environment
THE of a bussiness is generally depertment
dependent on thr business environment .Even after a bisness is creted ,its
enterpurners and mangers continually monitor the environment so that they can
anticept how the depend dor its products or its cost of producing products may
change.The business environment can be segmented into the following parts:
.Social environment
.Industry environment
.Econmic environment
.Globel environment

Social environment
the social environment which inculeds demographic
and consumers perfrences represents the social tendeces to which a bussiness is
exposed.The demographic and charactericts of the populatios change over time.As the
proprtions of childrend,teen agers,middle aged consumers,and senior citizen in a
population cghanged,so does the demand for firm's products.thus,the demand for the
products produced by a sepicfic business may increase or decrese im response to
change in a demographic.for example , an increse elderly population has led to an
increse demend for many perscripation drugs.
stop renting DVD's .the ability of consumers ti download to music may cause them to
discontinue their puraches the CDS in te retail stotres.As techonlogy
devolpe,depend for the ability pay_per view
televusion may cause some consumers to some products increses,while demand for
other products decereses.Many busniesses closely monitor chnge in consumers
prefrences so that they can accommodate the cahanging needs of consumers and
incresses their profitablity as as result.

.Industry environment
the industry environmrnt represnts within firms
idustry to which the firms id exposed.the condition in each industry vary according
to the demand and the compition .firms benifits form being an industryb= that
experinnces a high consumers depends.for example ,the depend for cell phone is very
high.however industries that have a high demand for thier high products also tend
to have substantial competetion beacuse many firms enter their industry.intense
competetion is good for consumers for it forces firms to keep thier peices
realtively low inn order to compete.for firms,however competetion may result in
lower rwvenue and therefor lower profit.

.Econmic environment
.Econmic conditions have a strong peroframnce
impoact of each business.when the econmy is strong then then the the wages of
emplyes is high and their employment is high and compensation paid tom employes to
is a also is high.since pepole have relyively good income under these conditions
,they purchased a large amount of products.the firms that produced these produts
benifit from then large demend.they hire many employes to inssure that they can
prioduce a sufficent amount of products to satisfy the demend.they can also afford
to payb high wages to their employes.
when the econmy s week firm to play off some of
thier employes and can't affford to pay high wages.since people realtibvely low
income under these conditions ,they purchase a realtively sma;l amount if products
the firm thats produced these products adviresly effected beacuse they can't sell
all the products that they produced.consequently they may need to lay off some
employes. under these circumstances some firms fail,and all of their employes lose
their jobs.

.Globel environment
.Globel environment my affect all fims directly ir
undirectly.some firms rely on forigen counteries for some of their supplies or sell
their products in various countries.they ,ay even esteblished subsdiareiess in
forigen countries where they can produce products and sale them. Even if a firm is
notb planing to sale its products in forigen countries,it must be awair of the
Globel environment beacuse it may face forigen competetion when its sale products
locally.
further more,globlel econmics conditions may
effect local ecnomic conditions. econmoc conditions weaken in foregin countrreis ,
the foregin countreis demands U.S. demand products decereas consquiently salaes by
U.S. firms will decrese , and this may result in some lay off stop.the ge rellm
income level in the united state will declined and U.S. consumers will have less
money to sepend.the demend for all products will declined,even those that are sold
only in thje united state thus ,even firm that have no inyernational buisness van
be effected by the Globel environment.