… A PESTLE analysis provides a 360-degree view of the political, social, economic, legal, … DEPEST refers to the six broad factors affecting the macroeconomy – Demographic, Ecological, Political, Economic, Socio-cultural, and Technological. Environmental analysis is the term given to the process of looking at all of the different external factors that affect a business. Droughts or disease can affect pricing models and even the ability of food processors, grocery stores and restaurants in obtaining sufficient supplies to meet consumer demands. Summarize the factors that affect the business environment and the challenges that American businesses will encounter in the future. The following points highlight the seven factors that determine internal environment of a business firm. All these activities satisfy the diverse needs of the society … Demography is a study of human population with reference to its size, density, distribution and other connected vital statistics. Factors Influencing Business Environment may be internal or external to the business environment. The business environment or the external forces acting on the business consists of a large number of forces. C. relevant. Like most other parts of business analysis, this is particularly useful for executives in any company who are looking to beat competitors, increase revenue streams, and grow their organization. Some of these are under control of the business while some are not. Economic Environment; 3. Indirect environmental factors can affect any … These factors affect the threats & challenges of business. So, these could be family, friends, neighbours, colleagues and even the media. 2) Market size. The micro-environment of a business includes the factors in the immediate area of operation affecting its performance and decision making freedom. The Business Environment is broadly classified, into two categories: Internal Environment: The factors which exist within the organisation, imparting strength or causing weakness to the organisation, comes under internal environment. Because it is difficult to separate a business from its environment, it is also difficult to attribute a business performance to anything else. 5] Political and Legal Factors. Most important factors of micro environment of business are as follows: 1. competitors, 2. customers, 3. suppliers, 4. public, 5. marketing intermediaries, 6. workers and their union! Income Income indicates a customer's ability to spend on the products sold by the marketer. The three levels of … … It includes system, policies and nature of an economic trade cycles, economic resources Level in income, distribution of income and wealth etc….. 8. Internal factors affecting a business environment also are referred to ____factors. all actions promoting sustainability, gaining consumer appreciation of eco-friendly products and services, creating image of responsible … The environment can have a direct and indirect affect on how a business operates. It is related to the particular area where your company operates and can directly affect all of your business processes. A. political. Factors Affecting Marketing Environment. Environmental Factors affecting a Business. B. uncontrollable. Ecological factors influencing business are connected to actions and processes necessary to protect natural environment and in the same time maintain or increase efficiency of the corporation. Thus, a change in one factor affects the other factor. The business environment has been defined as "the totality of physical and social factors that are taken directly into consideration in the decision-making behaviour of individuals in the organisation." *Response times vary by subject and question complexity. Some common factors are political, economic, social and technological (known as PEST analysis).