What is the analysis of the business environment?

The business environment analysis is the study of internal and external environmental factors related to the company to find out how such factors affect business. The effect of these environmental factors may be positive or negative. This includes internal factors such as the type of corporate culture introduced in the organization and corporate structure. External environmental factors include factors such as competition, consumers, location and government regulations.

The study of corporate culture as part of the business environment analysis includes the assessment of the type of corporate culture introduced by the company. Corporate culture includes the main principles that the company has introduced, such as the level of formality in the organization, dressing various employees and the way employees and management interact. The purpose of studying corporate culture during the analysis of the business environment is due the fact that corporate culture has an important impact on the success of the company. Organization with a fixed corporate culture has a better chance ofIn order to make a bad corporate structure compared to an organization with a bad corporate structure. Employees in companies with good corporate cultures have good morality, are more motivated and subsequently more productive.

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internal corporate structure in relation to the business environment includes a study of the immediate premises of the company, including office buildings and other related facilities. External structures of enterprises include an analysis of an external environment, including the location of the company, the structures and the location of related factors such as suppliers and distributors. The company's structure, as well as the location and structure of suppliers and distributors, is important as they affect the efficiency of the goods and raw materials from one part to another. The distributor's warehouse size depends on the number of goods that can be stored for distribution to retail stores.

among other relevant external environmental factorsThere are number of competitors in the business environment and their impact on business. A company with too many competitors who produce the same or similar products can negatively affect the company. Given that government policies that are in place are introduced because favorable government policies can be considered opportunities, while unfavorable government policies may represent part of the threat to the success and survival of business.