Classification of Business Environmental Forces

1. LE PEST C Model:
Classification of Business Environmental Forces
Logical Forces: Government domestic and international rules and regulation.

Ecological:
  • Ecological concern effect in the art.
  • Economic arguments its accordance with the ecological issues. 
Political Factors:
  • Govt. and political pressure use
  • Views, philosophy, tendencies
Economic Forces:
  • Macroeconomics, microeconomic, inflation, depletion, economic reaction
  •  Foreign, exchange rate, balance of rate, balance of payment
Social Forces:
  • Culture
  • Demographic (age, education, profession, social statues, gender)
Technological Forces:
  • New Technology
  • New Process
  • New Product
  • New Market 
Competitive Forces:
  • Difficult is that business three faces in the dynamic and changing competitive environment
  • Tools and techniques of competitive analysis
  • Structural analysis of competitive forces

Source of structural analysis of competitive force they are-
  1. Entry barrier
  2. Rival among the competitors
  3. Bargaining power of buyer
  4. Bargaining power of supplier
  5. Impact of substitute

Outcomes of LE PEST C Model: Enable students and managers to assemble a logical and comprehensive picture of the environment. It is the interrelationship between different factors which adds hot only complexity and uncertainty but also provider riskiness and proper acuity.


2. Dartboard Model:

Classification of Business Environmental Forces


3. Peace and Robinson: They separate the firm’s external environment into three categories.
They are:

           - The remote environment
           - The industry environment or competitive forces
           - The operating environment

The Remote Environment: According to peach and Robinson such as global and domestic political, social and technological concern

The Operating Environment: Comprises a group of mixed actors including suppliers and customers.

Outcomes: Outcomes of all classification of environmental forces
  • Attempt to model the environment and simplify reality.
  •  Help to identify and understand the complex environmental processes and process
  • Serve as useful tools to aid our analysis of environment
  • Threat Business environment is a complex array of interrelated forces, we merely compartmentalized than, for simplicity to gain in right.



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