Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations. Additionally, some external factors are beyond your control. These factors are often called external constraints. Let’s take a look at some key environmental factors. The business environment is dynamic in nature, that means, it keeps on changing. The changes in business environment are unpredictable. It is very difficult to predict the exact nature of future happenings and the changes in economic and social environment. Business Environment differs from place to place, region to region and country to country.
BMWs internal environment is practically flawless as their corporate culture with their employees is very intimate. Their beliefs are passion and enjoyment, teamwork and personal development and equal opportunities and diversity. Their corporate culture is unique and their commitment to their company culture has been an essential part of their structure for over 30 years. Being a German automobile and engine manufacturing company, they provide luxury cars for their customers. To keep their customers happy they use the cultures to enforce their beliefs. BMW believes in having passion in the workplace to think ahead and build new ground. They look for employees that have team spirit and initiative. This is a very successful method in their internal environment for BMW as it engages all people in the community that have an interest in BMW as the employees are always finding new ways to engage them and being very motivational and inspirational when speaking to their customers.
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Their external and competitive environments are very similar as they are constantly changing. For example in the external environment factors like the laws changing or environmental issues rising and becoming a huge issue would become big problem s for a business, which is why the external environment is so important for the business. This is because it accounts for all the factors that are out of the businesses control, but they have to follow them all, otherwise their customer appeal will fall. It is the same in the competitive environment as it is also constantly changing, because businesses can enter the market and become really successful in a short period of time. In contrary, big businesses in the market can collapse and become bankrupt leaving empty market space for the remaining businesses to take over and become larger and become more successful.