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Business Analysis - Essay Example

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For instance, I will describe and critically appraise the concepts required to analyses the impact of both micro and macroeconomic environment on business. Secondly,…
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Business Analysis
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Download file to see previous pages My perspective of the mentioned learning outcomes is that the business environment is a complex setting with diverse factors that influence all the decisions that managers make concerning business. This work will seek to demonstrate the interrelations of the mentioned learning outcomes and their relevance to the performance of firms.
The environment consists of both internal and external factors that interplay to affect the way businesses make choices regarding what to produce and what to sell on the market. For this case, the market place forms the biggest force in the external environment that affects the choices from within the internal environment. I understand that the government forms unit of regulation of business activities in both the micro and macroeconomic environments. Economics deals with the choices that people make because of the limited resources, which for this case, contains both the individual producers and consumers as well as the aggregate economy. Microeconomics is, therefore, the study of individuals within an economy while macroeconomic concerns the aggregate economy.
Both firms and consumers within the economy have to make choices regarding the use of limited resources. For this case, the consumers form the market forces because they affect the levels of demand for the goods and services that the firms make within the economy. I understand that the choices that companies make concerning the production of their products constitute the market structures such as the oligopolies, monopolies, and perfect competition. Managers of the firms have to make choices of the best alternatives that will give the best returns after studying the activities of their competitors. Such decisions constitute the market curves, which are actual theoretical tools that predict the likely outcomes of a given decision concerning the production of goods and services.
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