The concept of strategy has been borrowed from the military and adapted for use in business. In business, as in the military, strategy bridges the gap between policy and tactics. Together, strategy and tactics bridge the gap between ends and means. Richard Shamoon business policy and strategic management, major tasks in strategic management, vision and mission and objectives of the strategic enterprise, strategic analysis in terms of swot analysis, tows matrix, portfolio analysis, strategic planning, marketing, financial production, logistics, research and development and human resources strategy formulation, implementation and control and achieved the strategic edge for the purpose of clarifying the concept and placing it in this context. In this chapter Richard Shamoon discuss about the business, major objectives of business like survival, stability, growth, efficiency and profitability, environmental influence to business, environment analysis, characteristics of business environment, components of business environment, to know the relationship between the organization and its environment, the micro and macro environment and its elements like customers, competitors, organization, market, suppliers, intermediaries, demographic, economic, government, legal, political, cultural, technological and global environment impact on business. Companies how to enter into global market, its manifestation trends, strategic response to business, Porter’s competitive and five forces model analysis for business enterprises in industry, commerce and services sector
Meaning of Business Environment:
The term ‘typically’ refers to the development and processing of economic values in society. Normally, the term is applied to portion of economic activities whose primary purpose is to provide goods and services for society in an effective manner. It is also applied to economics and commercial activities of institutions which having other purposes. Business principally comprises of an all profit seeking activities of the organization which provide goods and services that are necessary to economic system. It is the major economic pulse of a nation, striving to increase society’s standard of living. Finally, profits are a primary mechanism for motivating these activities. Business is in any organization which makes distribution or provides any article or service to the customers, who are belonging to members of the society. Business may be satisfied customers needs for these purpose customers are able and willing to pay for it. Business may be defined as “the organized effort by individuals to produce goods and services to sell these goods and services in a market place and to reap some reward for this effort.” Functionally, we may define business as “those human activities which involves production or purchase of goods with the object of selling them at a profit margin”.
• The term business refers to the state of being busy for an individual, group, organization or society.
• It is also interpreted as one’s regular occupation or profession or economic activities.
• It deals with particular entity, company, organization, enterprise, firms or corporation.
• It also interpreted as particular market segment sector like computer business and it included under term business.
• It is wide and willing to use different activities
• It consists of purchase, sale, manufacture, processing, marketing of products, services like manufacturing, trading, transportation, warehousing, banking and finance, insurance and advertising etc.