INTERNAL ENVIRONMENT (5 M’s)
Man:
Man, the first of the five M's is the most important. The right personnel for the right position is a sure bet for organizational effectiveness and efficiency. No two ways about that. Thus, lateness and absenteeism, unsafe acts, alcoholism, poor training, incompetence are just some of the attributes of man at work that could upturn the apple cart of business ventures. Human resources determine the workings of the other four basic business resources. People make sure materials, machines, minutes and money are utilized in a productive manner to achieve goals or aims and objectives of organizations and enterprises. Poor employment practices are inimical to the sustenance of such ventures. With the right man in the right job, a large portion of effective business management will have been achieved. No doubts about that.
Material:
Without materials, human resource is made redundant. Thus every right thinking and right planning organization knows that materials needed for any business or service mist be in place before 'man' can be of use in any business activity. Supply chain departments grew out of this thinking and have been a very useful and effective aspect of business management. A group of cement factory workers waiting for supply of limestone may have nothing much to do for as long as the supply does not arrive. Even if it arrives and in poor quality, the production is certainly doomed for a loss. Quality compromised is business pauperized. Poor quality of materials potentially ruins entrepreneurship. This is an indisputable fact.
Machine:
The metal contraptions called machines have made man fulfill almost effortlessly various dreams of creating things that make a existence more worthwhile. Machines have replaced man in tilling, planting, and harvesting. Man has been replaced with looms in cotton and fabric processing. Countless other ventures requiring physical exertions of force has been taken over by things fixed with gears, bolts and nuts and conveyor belts. Recently, computers joined in the fray of increasing production and reduction in time spent by man for manufacturing and general production of goods and services. However, without man and materials, machines will be useless. They need to be operated by man and fed with materials. That again is a doubtless fact.
Management:
Time management is one contemporary aspect of business that has been employed in use by effective and successful business ventures to optimize delivery. As earlier noted, lateness and absenteeism of man at work is a large chunk of time off production. Poor time management is as ineffectual as a broken down machine, an indisposed employee or lack of adequate materials for production of goods or services. Various schemes have been used by successful enterprises to ensure proper and efficient use of time by man and machine, including timely delivery of materials, to ensure business sustainability. Compromising time is tantamount to a business venture shooting itself in the foot. There are umpteen instances to ascertain this truism.
Money:
Without money, no venture or enterprise can motivate workers, get quality and sufficient materials, get the right machines and maintain them or even ensure that time is properly managed. Money management, when not properly organized has been the most known factor involved in collapse of enterprises in history. The quantity and quality of money expended in ventures have a direct bearing on the fruitfulness of same over time. Accounts department have been revolutionaries over the years, by man, to ensure maximum operations of surviving business organizations. Where there is not enough money, no good workers, materials, or machines can be employed or purchased or acquired. In other words, such a venture will be wasting its time existing in the first place.
EXTERNAL ENVIRONMENT
MICRO/OPERATING ENVIRONMENT
As for the suppliers, our business does not depend on only one supplier. In fact, we managed to have at least three suppliers to support our business so that we won’t run out of supplies and our services won’t be delayed or cancelled in case of shortage of resources. Aside from securing several suppliers, we also make sure that the supplies delivered to us are reliable and of good quality because it would also affect the services we are going to provide to our customers.
Our customers are the main beneficiaries of our products and services so we always have to treat them valuably because the success of our business relies on our customers’ satisfaction. We make sure that our business is able to meet the varying needs of their pets. The more we could get customers and convince them to patronize our products and services, the more our business would prosper and earn more.
In our business, we don’t have market intermediaries because we make our products and services directly available to our customers. We transact and interact with our customers personally and we also have our own delivery personnel and equipments so we don’t have to make contracts with the middlemen and with that, the customers could directly negotiate with us most especially in cases of product damage or dissatisfaction of services that we provide to them.
Our pet shop is not alone in the economic market whether it’s online or not. We have a lot of competitors that would brag our business down from being on top. These competitors does not compete only with our resources but also with our customers so it’s really a big challenge for our business to bring our business on top and convince the customers to prefer availing our products and services than the others.
The public also plays a role in the success of our business. We have to maintain our business’ good reputation because the media and non-consumers of our products and services could also be the reason or the means that we could get more customers.
MACRO/GENERAL ENVIRONMENT
ECONOMIC ENVIRONMENT
The economic environment also affects the operation of our business. There are economic policies of the government that we have to follow and abide with to make our business operation legal and valid. With this, the customers will be assured that the transactions they are going to make with us are secured and legal so they will trust on us. We also have to consider the economic condition of the public where the types of products and services that we are going to provide to them would depend. To gain customers, we will not only consider the quality of products and services we made available to the market but we also have to consider the capacity of the public to buy so we have to make sure that our products and services are of reasonable and affordable prices to cater not only the well-off pet lovers but also those who have less or those who can’t afford to place their pets under professional care on higher prices. We have to make a larger target market so we could gain larger from our business.
NON-ECONOMIC ENVIRONMENT
The non-economic environment are also factors that can affect our business. International environment, for one, could affect our pet shop especially if we decide to import other breeds of pets from other countries. The international market, which is a potential source of product for our pet shop business, certainly have policies that we must comply with in order for our transactions not to infringe on international laws.
The demographic environment will also definitely affect our business since the population is apparently our main customers. In order to gain profit, we must make a serious study of the demographic’s needs and interest in our business. We must recognize who our target customers are, their standard of living, and their preference so that we could adjust the prices of our products accordingly.
The natural environment is a factor as well since we are fostering live species. A natural environment conducive to healthy living of our pets is necessary for the success of our business as well.
Technological environment is also something that we must consider since our business also utilizes the net to promote our product. We must ensure that this medium is used properly because it could help promote our business which would translate to more profit.
Finally, the Socio-Cultural and Political Environment, while something that is beyond the control of our business, are also things to consider. It is important that we abide by the law and serve the public the best we could in order for our business to remain in good standing with the government and with the masses as well.
