Business Environment Analysis Paper

The environment that consists of the set of external conditions and forces, have the potential to influence the organization. The general environment includes all the overall trends and events in society such as social trends, technological trends, demographics, and economic conditions. The industry consists of multiple organizations that collectively compete with one another by providing similar services, goods or both. The environment in business matter for several reasons. First, the environment is useful for providing resources that an organization needs to create goods and services. Second, the environment is a source of opportunities and threats for an organization. The opportunities are the ends and trends, create chances to improve

They use a variety of different moves such as advertising, new offerings, and price cuts to try retaining existing buyers and to attract new ones. Exit barriers in an industry are usually high, and this is because they do not have the option of leaving the industry gracefully. When competing in a highly profitable industry it can be desirable however, it can also attract unwanted attention. Potential new entrants to an industry are firms that do not currently compete in the industry, but they might compete soon or in the future. New entrants can join the fray within an industry in several different ways. Executives often need to take stock not only of their direct competition, but also of their players in other industry as well. Substitutes are offerings that differ from the goods and services provided by the competitors in an industry. Suppliers provide inputs that firms in an industry need to create the goods and services that they put in to sell to their buyers. A strategy that they use is called the forward vertical integration. This is where they possess power to the extent that they can become a new entrant to the industry of their choosing. Buyers are known to purchase the goods and services from the firms in an industry. Possess backward vertical integration is the power to the extent that they can become a new entrant to the industry if they