Types Of Business Environment

Submitted By Sheelagh1
Words: 1303
Pages: 6

Business environment characteristics 2
Markets 2
Economic trends 3
Relative growth and decline by sector 3
Relative growth/Decline of output by industrial sector 4
Decline of primary and secondary industries 4
Growth in service industries 5
Legal framework 5
Environment 5
Health and safety laws 5
Employment 5
Information handling 5
Planning regulation 5
Consumer protection 5
Competition 5
Advertising 6
Company laws 6
Role of Government in the Legal framework 6

Business environment characteristics
The Business Environment is the world in which businesses functions.
Modifications to the environment can have major effects on what they do and how successful they are.
Markets Economic trends (employment, income, growth)
Sector and Industry Fluctuations ; relative growth/decline by sector: drop in the primary and secondary industries and growth of tertiary service industries; legal framework

A Business needs a market/buyers for their products.
TYPES OF MARKET: Mass Market – fast Moving consumer goods (FMCGs) shampoo, toothpaste, teabags, milk, baked beans, peas……
Product Market - Demand and supply for food, clothing, travel, cars
Financial Markets – buying and selling of shares, currency, borrowing or investing money. Niche Markets – smaller specialist markets, hand crafted….
Markets CHANGE over time due to several reasons………………
Fashion and lifestyle - changes in taste and behaviour i.e. downloading films music, games, books…. cheap foreign imports - may force closure of businesses who cannot compete
New Opportunities to make Profits - DIVERSIFICATION – farmers holiday lets...
Technological Developments - Computes, Pad’s, wireless printers, 3G, etc. built in obsolescence.
The types of markets that are commonly found in Cornwall are niche markets because they sell crafts and specialised products.

26% of businesses are sole traders indicating that most businesses in Camborne are small. There is only 14% PLC’s which are only located in the prime positions of Camborne.

Economic trends
Economic trends disturb businesses and consumers confidence.
Employment – If employment rate is high people feel more confident and spends, if unemployment is high they need to be careful as lower income to spend.
Income – if income tax increase people have less disposable income. If VAT increase goods are more expensive.
Growth - Economic growth means more money in the economy, however some industries may not be growing.
Relative growth and decline by sector

Employment in the primary has decreased by 3.1% between the years 1981 to 2001.
Employment in the secondary sector has fallen from 30.9% to 19.7% in 2001.
Employment in the tertiary sector has increased from 64.2% to 78.4% in 2001

Relative growth/Decline of output by industrial sector

The picture above shows that the output in the primary sector has decreased, the output in the secondary has also declined and the tertiary sector has increased this has all happened between the years of 1989 to 1997.

Decline of primary and secondary industries
The primary sector there is a slight decrease in the number of employed and the primary output has also had a slight decrease in numbers.
Traditional areas such a coal mining fishing and quarrying have dropped, there is an escalation in new raw materials such as organic food, wind farming and withdrawal of natural gas and green fuels.
Areas that did moderately better in the secondary sector involved ammunitions, drugs, optical equipment, paper and publishing. Ever since the first time since its invention no TV is made in UK……since SANYO closed in Lowestoft.

Growth in service industries
Since 1981 there has been a continuous growth in the tertiary sector this is because everyone will always need a service but 2008 tertiary sector showed continuous growth then in 2009 employment fell as the credit crunch took hold. Travel and Leisure affected and the housing market, bars and restaurants