Business Environment

Introduction

A business environment is a product of two words that were combined together to create a more meaningful word, from the words business and environment. First, the word business is more about economic sense means of human activities like production, extraction or purchase, sales of goods that are performed for earning profits. Meanwhile, the environment is more focused on the surroundings. And when put together, the business environment may be defined as a set of conditions, like social, legal, economical, political or institutional that is uncontrollable in nature and affects the functions within the organization (Mitton, 2006).

The collection of different people as the propeller of an organization can be projected in different point of view. The world of business revolves around with the making or buying, selling of goods and services. Moreover, businesses are motivated by profit. It is influenced by external, as well as internal, factors, forces and events. A business environment from a different perspective is a building of brotherhood called the organization where individuals or the people are focused in making their necessary task or duties to take the business going. In addition, there is also an existence of shareholders or stakeholders, employees, managers, suppliers and customers (Mitton, 2006).

Business environments were constantly affected by different changes, or in more specific term are the economic changes. One important change might be a change in the demand for its products or services. Another change can be in a way where there is a supply or competition in the marketplace. Economic changes can be triggered by a broader concept or factors like the money, interest rates, inflation, exchange rates, imports and exports. The other influences can be as social, legal, political and technological. Changes that appear in external and internal business environment will affect the strategy, organizational structure, behavior and performance of a business (Mitton, 2006).

The Business Mission and Objective

A business environment is founded by the organization’s mission, vision, and objectives. Each and every business should have the fundamental factors like the mission and objectives to establish the improvement and promote it as well. The mission is the job or work of a business should undertake and contribute for the entire community or in the industry. Meanwhile the objectives are the purpose or the aim of the business and more close to their goals. Together, the mission and objectives can be the sacred ground for the business to do what they needed to do. These two are important subjects for the business and the other business future plans.

Importance of a Mission Statement

A mission statement can be described as the road to success. Its how a business is going to achieve the business goals and reminds all the business leaders and workers about their purpose and motivates them in return. In a business partnership, writing a mission statement together will ensure that all partners understand each other’s goals and ideas for the business. The mission statement will also communicate your values to future employees (Willms, 2006). Employees cannot represent your company values effectively unless they understand them and adopt them for themselves.

Mission Statement

It begins by clarifying what is important for a business provider. Having a clear purpose provides the leaders the true meaning of all his agenda. A mission statement is written in an outline of all the intentions and motivations (Ehmke and Akridge, 2005). And writing becomes hard when a person is not yet that confident enough to show or align his business. Considering the things important for a person are the basic steps to write an effective business’s mission statement. An individual must bear in mind that a mission statement is the one material that can communicate all the purposes and principles of the business’s nature and environment. A good mission statement should accurately explain all the issues that surround the business and the hopes that an individual is aiming for.

It should address the opportunities or needs of the business or the purpose of the venture, the ways of it, and the values of the undertaking. The mission is the beacon of the venture, from the present to the future. All other actions that might take place in the business and plans should accomplish the mission stated (Ehmke and Akridge, 2005). Communicating the mission well with clarity is important because the goals are set there, the appropriate actions are well planned, and the way a propeller spend their time will be guided by the statement. The Mission statement is guided by the four basic questions and can help an individual make his statement clear – “who are we?” that tells about the business’s nature and its kind; “what do we do?” that describes the business’s works; “why do we do it?” that states about the values; and “who do we do it for?” that defines the target audience or market. All four are important to make a mission and objectives right that can clearly deliver the reason why the business exists (Willms, 2006).

Conclusion

A business should emphasize the mission and objective to promote the business environment where it is belong. By this, the target market can easily identify them and the society can support them as well. Starting a business with mission and objectives only means that a business was founded by the leaders that had good qualities. A mission statement cannot be distorted by any other business elements because it will be remain constant for the business unless the business itself decided to change some of its course.

References:

Ehmke, C., & Akridge, J., 2005. The Elements of a Business Plan: First Steps for New Entrepreneurs. Department of Agricultural Economics. [Online] Available at: http://www.ces.purdue.edu/extmedia/EC/EC-735.pdf. [Accessed 09 Nov 2009].

Mitton, A., 2006. Understanding, Interpreting, and Analyzing the Business Environment. [Online] Available at: www.ambus.co.uk/Understanding the business environment191206.doc. [Accesses 09 Nov 2009].

Willms, D., 2006. Get Started: Writing Your Mission and Vision Statements. [Online] Available at: http://www.denisewillms.com/GetStarted!!.pdf. [Accessed 09 Nov 2009]