Business Environment Test - 44

Environment scanning can be defined as the process by which organisations monitor their relevant environment to identify opportunities and threats affecting their business. The environment scanning is applied to both external as well as internal scanning process as business environment includes both external as well as internal environment in which the business is practiced.

External environmental scanning basically includes social environment known as general forces as well as task environment which are known as specific forces as they have a direct relationship from the business. These includes change in technology, political factors, demand of population etc.

Liberalization refers to end of licence, quota and many more restrictions and control that were put on many industries. The term basically refers to opening of the economy to the world and providing freedom to the departmental and public sector undertakings to access capital market in order to achieve international competitiveness. 

Privatization refers to giving greater role to private sector and reducing the role of public sector through disinvestment of public sector and dilution of stake of the government. Privatization results in better economic development due to more resources from private sector, better management due high competition in private sector and encouragement of entrepreneurial skills into the individual.

Globalization means the speedup of movements and exchanges (of human beings, goods, and services, capital, technologies or cultural practices) all over the planet. One of the effects of globalization is that it promotes and increases interactions between different regions and populations around the globe. Reasons for globalisation. There are several key factors which have influenced the process of globalisation: Improvements in transportation - larger cargo ships mean that the cost of transporting goods between countries has decreased. ... Transport improvements also mean that goods and people can travel more quickly. globalization is the process by which people and goods move easily across borders. Principally, it's an economic concept – the integration of markets, trade and investments with few barriers to slow the flow of products and services between nations.

Licensing regulations is an economic factor as it includes with providing sufficient business license to the corporate units in order to survive in competition that prevails in the market. After, liberalization, many of such license where removed so that many business can flourish in the country. 

Forecasting refers to the technique of gathering information regarding the future well in advance and making use of it in preparing a planning premises for the business. The correct steps of forecasting is 

A code of conduct refers to the rules and regulations for doing an activity.  The code of management is not a code of conduct as it just aims at providing general guidelines to the managers for taking managerial decisions. 

PESTLE analysis is a type of macro environment scanning where PESTLE stands for political, economic, sociological, technological, legal and environmental sectors of the business where these different sectors of the business are analysed in order to update the business with the current environment.