the business environment
The Business Environment
SIX FORCES OF INFLUENCE by Ryan L. Sievers, MBA
Definition—The six forces of the Business Environment are defined and described in detail.
These are the forces beyond the control of any company. Understanding and monitoring them is crucial in order to anticipate, prepare for and successfully adjust to the change that is both inevitable and constant.
Revised June 2008. Copyright © 2006-2008 Ryan Sievers. All rights are reserved.
DEFINITIONS
/ The Business Environment
September 2006
The Business Environment
SIX FORCES OF INFLUENCE by Ryan L. Sievers, MBA
THE BUSINESS ENVIRONMENT IS
the complex realm of factors and conditions that influence all participants
(principally composed of consumers, businesses, and governments) that are engaged in various market exchanges. It is the amalgam of all the forces of influence that are external to—and outside the control of— any one person or company. The business environment is dynamic; engaging and connecting myriad business concepts in a complex and multifaceted interplay of issues, causes, and effects that can manifest in foreseeable, as well as unpredictable and unprecedented, risks and outcomes.
As a means to better understanding and analyzing its complexities, the business environment has been organized under six major forces of influence: Sociocultural, Competitive, Technological, Economic,
Political & Regulatory, and Natural. These six forces are interrelated, constantly in action, and constantly changing. Each of these forces exerts some degree of influence or effect on any given business at any given time. Depending on the scenario and situation, some forces of influence are more important than others, and some at different times than others. To be successful a company must thoroughly understand the business environment and its effects.
SYSTEMATIC AND TIMELY OBSERVATION
of the business environment is necessary to help a company
develop and
SIX FORCES OF INFLUENCE by Ryan L. Sievers, MBA
Definition—The six forces of the Business Environment are defined and described in detail.
These are the forces beyond the control of any company. Understanding and monitoring them is crucial in order to anticipate, prepare for and successfully adjust to the change that is both inevitable and constant.
Revised June 2008. Copyright © 2006-2008 Ryan Sievers. All rights are reserved.
DEFINITIONS
/ The Business Environment
September 2006
The Business Environment
SIX FORCES OF INFLUENCE by Ryan L. Sievers, MBA
THE BUSINESS ENVIRONMENT IS
the complex realm of factors and conditions that influence all participants
(principally composed of consumers, businesses, and governments) that are engaged in various market exchanges. It is the amalgam of all the forces of influence that are external to—and outside the control of— any one person or company. The business environment is dynamic; engaging and connecting myriad business concepts in a complex and multifaceted interplay of issues, causes, and effects that can manifest in foreseeable, as well as unpredictable and unprecedented, risks and outcomes.
As a means to better understanding and analyzing its complexities, the business environment has been organized under six major forces of influence: Sociocultural, Competitive, Technological, Economic,
Political & Regulatory, and Natural. These six forces are interrelated, constantly in action, and constantly changing. Each of these forces exerts some degree of influence or effect on any given business at any given time. Depending on the scenario and situation, some forces of influence are more important than others, and some at different times than others. To be successful a company must thoroughly understand the business environment and its effects.
SYSTEMATIC AND TIMELY OBSERVATION
of the business environment is necessary to help a company
develop and