Professional Documents
Culture Documents
Business environment consists of all those factors that have an impact on business ,such as the strengths ,weakness ,internal power relationships and orientations of the organization, government policies and regulations ,nature of the economy, economic conditions cultural demographic natural and global trends and cross border developments.
SWOT analysis
Scenario analysis
It is a technique used to forecast the occurrences of complex environmental events. It is a detailed description of how certain events may occur in the future and their consequences on the organization.
Discuss the scenarios with the top management and refine them Develop the contingency action plan for each scenario.
Types of forecasting
Economic forecast-on parameters like GDP, per capita income, growth rate, investment and output trends in different sectors. Short term economic forecast is used for demand and sales forecasting and marketing. Both quantitative and qualitative methods are used for economic forecast. Like time series and judgment models.
Social forecasts-based on population growth, age structure, ethical ,rural urban distribution, migration, family life style ,expenditure pattern. Political forecast-political parties ,internal power structure. Technological forecast-innovation, diffusion and penetration of technologies.