Business Environment in India - Business Environment Video Lecture | Business Environment - B Com

to Business Studies part for today this
listener is going to look at factors
affecting the choice of the ownership
structure in businesses and then
secondly we're going to have a look at
some of the influences on a business
environment there are a number of
factors that affect the choice of your
ownership structure from something we're
not you choose a sole trader partnership
or can incorporate them to either a
privately owned company already publicly
owned company the first key factor is
obviously the size as a business pros
it's quite common for its structure to
change most small businesses start out
as a sole trader often taken on partners
to help expand and then finally becoming
a private company to help it expand
throughout either nationally or
internationally a second factor
affecting is your ownership structure if
you are wanting to expand quite often is
it's the most convenient ways to take on
Investment Partners or or floating the
company and either of these options may
often require a change in the ownership
structure of your company obviously a
sole trader can't take on partners nor
can a partnership be floated on the
stock up stage they must be incorporated
first thirdly finance becomes an issue
it is much easier to gain public finance
by the share market of the venture
capitals if you are a corporation so if
you incorporate your company become a
limited liability company and therefore
it becomes illegal into the on its own
finance organizations are much more
willing to invest or to lend you money
to expand your business at this stage it
would be really helpful if you take some
time having complete revision exercise
2.5 from the textbook
now I want to have a look at some of the
influences on the business environment
these are basically typically divided
serious internal influences and external
influences Intel influences are things
like the business can't control these
are clean things like employees what
products you're selling what markets are
selling into and external influences are
things that are beyond the control of
the company but things that need to be
the company needs to be aware of
regardless including governments or
taxation environments or environmental
laws typically internal things are
easily controllable are the culture and
the people you have the right to decide
you employ in your company or your
business and typically the owners and
management other ones that developed the
culture and the company this means how
the company's going to operate how
people are treated the feel of the
organization whether people have any
feel valued or not a second internal
factor as we said before you can choose
the products and the resources that you
use you can develop your own suppliers
to create your products or services and
you decide what products and services
you are going to sell on to the market
and a brief look at external factors as
we said before the government and
economy are things that you need to be
well aware of that you have absolutely
no control over Australia has some say
in the election of the government when
business is not going to change it much
one money other similar to the economy
you have very limited control over the
economy however you need to be aware of
it if times are going well you might be
wise to take on extra staff to take
advantage of the good economic
conditions and the expected growth in
your preference business conversely if
economic the economy's not doing so well
many businesses hold off hiring new
people in the case that there may be a
downturn
I don't have to lay them off again on a
later date other external factors you
have limited control over at that
technology and social attitudes
you can't control what technology and
people are developing and you can only
really decide whether you know it or use
it apply it in your own business
similarly you can't really control wind
it a few other exceptions of companies
like Apple what social attitudes are
towards your products or towards the
marketplace in general most companies
train followers not trendsetters however
you need to be aware of what social
allergies the rise in the green movement
environmental concerns has caught many
companies not a surprise and they're now
trying to play catch-up to make sure
they get there are two external main
factors that operate in opposition to
each other and we classify these in
terms of economic terms in a boom period
where the economy is doing well and the
markets are increasing they're typically
experienced during these periods high
employment much easier for people to
find jobs often we find what even we get
to situational about 5% unemployed which
weekend becomes consider full employment
is always going to be a hard core people
who can't find work or or white find
work with an economy this can then lead
to higher inflation high wages because
if people have a choice of jobs they
tend to go to the one that suits them
best and employers often have to offer
it extra inducements to get staff to
fill positions and in filling this in
turn increases inflation or the
employers have more spending power let
seem to drive up the prices of goods or
services in the wire economy and
consuming spending therefore was also
increased conversely in a recession
unemployment tends to rise is a struggle
to continue to make
their profits and they tend to leave
employees dairy some businesses closed
down altogether you also tend to find
stable levels of inflation in terms of
feeling low inflation because the demand
and the economy is not driving prices up
so inflation stays stable or even more
disastrously you can have deflation
where prices are increasing overall
decreasing overall and driving prices
down that's more subtracting or a severe
recession typically analysis and
consumer spending equations as people
don't feel as confident about spending
the money they're earning and start to
save money in case they lose their
positions on is the unemployment and
still need to pay mortgages or put them
through school these periods of boom and
recession what accounts call the
economic cycle they're typically the
economy goes for a period where things
start to increase we get into a boom
period which then Peaks that starts to
turn back down again as either inflation
takes hold and it has a negative impact
on the economy or some other unforeseen
factors such as the global economy
starts to drive our economy down
Australia at the moment is in the middle
of a downturn period as most of the
other Western economies that we trade
with are in recession and our main
trading partner China there is
experiencing less growth and less demand
for our exports of the happening so this
has led to the end of one of the longest
booms you've seen in Australian legal
history and start of a slight downturn
that can't be classified as being in a
recession yet but this perhaps is only a
matter of time and certainly Australia
Reserve and you having a recession all
this economic news plays don't have an
impact on business decisions
employers and now are probably less
likely to be wanting to employ people if
they're fearing that the economy is in a
recession at this stage like a complete
snapshot activities in the global
financial crisis and the survival of the
fittest and 6 and 3.30