Session 8-9

 Session 8-9

5 Nov,2021 & 9 Nov,2021

The main focus of these sessions was to learn about the business environment of an organisation. The 2 types of environment any business operates in are external and internal environment.  An external environment is a group of factors or conditions that are outside the organization but affect it to some extent. It is further divided into task environment and general environment. the general environment relates to PESTEL whereas the task environment relates to suppliers, customers, competitors etc.

  

The internal environment is a set of elements that define the atmosphere within the company's structure. A few of the factors influencing the internal environment are mentioned below.

Afterwards,s we discussed the strategy of PepsiCo to keep up its market share in a time when consumers are actively becoming health conscious. We learnt through a video, how big companies like PepsiCo eliminate their competition by purchasing small companies which can prove to be a threat in future.

Furthermore, we discussed a very small case showing how the knowledge, understanding and analysis of the business environment can prove beneficial for an organization. To have a better understanding of the external environment we understood the whole concept by using McDonald's general and task environment. We analysed all the political, social, technological, economic and legal factors that have an impact on the operations of McDonald's as well as gained knowledge about its suppliers, competitors, strategic partners, regulators and customers.

In the end, we also had a brief discussion on how the companies put their needs above those of their customers. We read a case of Dr David Dao and United Airlines flight who was forced to give up his seat, and when he refused he was subjected to violence. This sparked a PR nightmare and the company had to face consequences subsequently.