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Environment factors affecting business. An organizations environment is composed of numerous factors:

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Introduction Every organization, whether cultural, political, business, religious or social, exists within a particular environment; and it is the nature and characteristics of the relevant environments that affect the attainment of objectives of the organization Environment Factors affecting Business An organization's environment is composed of numerous factors: (A) Social-Cultural Factor Each society has a unique culture which represents the shared characteristics and values of its people. That is, in each society there are certain norms or values which together form the basis of how people behave and the attitudes they display. The sources of social culture lie in its historical tradition and development, its religious beliefs, customs and laws. A society's culture is important for individual organization for several reasons. For example, the acceptability of the organization's products or services, attitudes towards pollution , health, consumerism, ethics, change of value. Another cultural implication for an organization relates to its own internal structure and behaviour. A society's culture may also have impact on the way in which an organization defines its authority and responsibility structures, in that it will need to be in accord with and subject to national cultural norms. (B) Political Factor The political system defines the type of environment in which business will function. ...read more.


Apart from competitor profiles, it is also important that the organization assesses the position with regard to the possible entry of new competitors into the market or the possibility of substitute products or services becoming available. Legal Consideration (A) Protecting Consumers (I) Laws influencing business * Trade Description Ordinance * Trade Mark * Weight and Measures Ordinance * Pharmacy and Poison Ordinance * Public Health & Municipal Services Ordinance ==> true & non-misleading advertisement ==> safety in consumption and disposal ==> warning statements ==> serving the purpose as expected. (II) Effect on Business 1. Extra costs in meeting the requirements. These costs include ==> fully test on the product to check the product ==> improving the equipment or product to meet the requirements. ==> Lobbying cost for politicians 2. Risks of losing consumers because of breaking the law and being sued. (III) Responses: 1. Shift to another country or market. 2. Develop attractive features of the product. 3. Employ experts to think out ways of eliminating legal liabilities. 4. Lobbying. 5. Act according to the law. (B) Protecting Employees (I) Laws influencing business Employment Ordinances regulates * termination of contract of employment; * wage periods; * deduction from wage; * maternity leave and severance pay; * holidays; * anti-union discrimination. ...read more.


having first obtained a licence from the E.P.D.; * controls are fully in force in Tolo Harbour, Junk Bay (Tseung Kwan O) and Deep Bay, etc.; * anybody wishes to dump waste of any kind at sea must first of all obtain a licence from the director of environment protection. Noise Control Ordinance (1988) * decrease annoyance caused by environmental noise; * permit from E.P.D. to carry out general construction work at night (7pm-7am) and public holidays (Sunday); * percussive piling is prohibited at night and on public holidays; * control noise from industrial and commercial premises through the issue of abatement notices; * protect against excessive traffic noise in new roads. Lays low noise surface on particularly noisy stretches of road (Island East Corridor) (b) Improve Waste Collection treatment and disposal facilities e.g. sewage, harbour cleaning (c) Environmental Monitoring and Investigation e.g. Water quality monitoring; Air quality monitoring; Bi-annually survey of waste; Ad- Hoc basic specific investigation. (d) Environmental Education and Awareness * educates and inform the public and promotes their awareness of environmental matters. * incorporate environmental issues in part-time/full-time degree courses; * established environmental campaign committeee to promote awareness. 3 Rs Reuse Recycle Reuse * Environmental Protection Festival on November 1990. S. 6 BUSINESS STUDIES NOTES ENVIRONMENTS S.K. H. CHAN YOUNG SECONDARY SCHOOL PATRICK S. W. KWAN 1 ...read more.

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