Paper Topic:

Business environment market research

BUSINESS ENVIRONMENT AND MARKET RESEARCH

Business Environment

The business environment refers to external factors that are largely outside the business . These include Political , Economic , Social and Technological factors . These factors can be analyzed using a PEST strategic analysis methodology in to evaluate whether they have a positive or negative impact on the business itself . Hence the business environment can be summarized as the collection of external factors that are independent of the business that affect the businesses profitability directly or indirectly . It is therefore essential for companies to restructure their

marketing and business practices in response to significant changes in the business environment . These changes include globalization , trade deregulation , computer and technological advancements (Kotler 2001 : 417 . The most common responses of business firms to a rapidly changing business environment include

Business Process Reengineering : This involves the radical change redesign and rethinking of existing business processes and functions in to achieve drastic improvement of current performance and effectiveness (Hammer and Champy 2004 : 16

Outsourcing : Refers to the process of a company contracting other external companies to provide services that may otherwise be performed by in house employees . This goes a long way to ensure that the company saves on resources and they are able to concentrate all their efforts on their core business

Benchmarking : This is a process of formulation of standard best practices and functions in to improve the effectiveness and efficiency of a business . It is a systematic tool that is used to ensure that a...

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