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It is very true that every manager should be very much concerned about various scales of
business environment that circles him or her. For any manager, the business environment could
be internal and external. Analyzing the internal business environment would help the managers
to identify internal strengths and weaknesses whereas analyzing the external environment would
help the managers to know about the external threats and opportunities.

As we all know, a single firm is circled by various other environments such as competitive
environment and other external environment. So the managers should not only not only consider
his mental models that lies within him and his firm but he also has to be very careful about the
other environments that would actually affect the entire effectiveness and performance of the
organization. If the managers only think of his mental models, he will only be increasing his
expenses. As the saying goes ³the essence of business is outside itself,´ every mangers should
actually look out of the window and analyze what¶s happening around him.

There might be various competitors in the market who will always try to make his firm superior
in front of the customer. For that, he would do anything possible to make his competitor step
down. Himalayan Snacks, the producer of Mayos noodles once bought all the stocks of Wai Wai
that was available in the market and stored it in its storeroom so that their sales could go up. And
it definitely did at one point of time.

So a firm might use various strategies, be it ethical or unethical to remove its competitors away
from the market. It is a well know fact that when some firm introduces some products in the
market which at the end of the day becomes a super hit, the other competitive firm will also
produce the similar kind of product in few months of time. For example, the beauty creams that
we find in the market, deodorant war that has been going on aggressively etc. So it is a duty of
the managers to be innovative all the time. He should always be ready with new ideas to tackle
such problems. He should also always be ready to think out of the box when necessary.

There also might be various external pressures that the managers will have to withstand. For
instance, the problem that Dabur Nepal is facing right now, the problem that Himalayan
Distillery faced when people started to die after the consumption of Virgin Whisky. So all such
pressures and difficulties do arise in business all the time and the managers should be ready
enough to tackle it properly.

Another great problem that the business would face is the labor problems. Nepali people still
have the mentality of Ö
 system that is prevalent in the bureaucracy where job take place the
old system of land grants, as payment for favors. This Ö
 mentality has also spill over the
business sector where workers consider their jobs to be for life, regardless of performance and
efficiency. It is very sad to know that the provision of the labor laws make it impossible for the
workers in both public and private sectors to be fired on grounds of inefficiency and non-
productivity. So the workers to shield themselves from being fired or taken to task, choose the
route of unionization. Now, the trade unions are also greatly affiliated with political parties
where they have members in huge numbers and this large union members turn up for a show of
strength whenever they think it¶s necessary. All this activity is adversely affecting the business.
So the managers should also be tactful to handle such problems and make sure that the work
goes smoothly. When talking about tactfulness, once I talked to the Managing Director United
World Trade Center who happens to be my friend. The union problem was his biggest
nightmare. He then applied one idea which some people might consider unprincipled. He
literally bought all the leaders of the union and asked them to shut the mouth of other members
who were part of the same union.

In some countries economy drives politics whereas in some other countries politics drives
economies. Mostly in developing countries latter is the scenario and Nepal being a part of it. So
as we all know, politics has a greater impact in every part of our working system. The greatest
example is in front of our eyes right now. Our economy is degrading day by day; the government
agencies do not have any idea how to pay the employees, the development activities are in
standstill position and our great politicians are only worried about the power (Ò ) that they
so badly want to embrace. They have no clue where our country is heading right now, how the
vital indexes are falling behind other countries, how the GDP is not even higher than that of
small country like Bhutan and the list goes on. I feel very funny about the fact that these political
parties and the leaders leading it show the ray of hope to all the innocent Nepalese who
desperately wants to see their country progress. 1990¶s people¶s movement for democracy
represented the spirit of the time and the first budget speech of 1991 presented by the finance
minister expressed that spirit. Nepali people thought that some better things are going to happen
in this country but in vain. The exact copy of it happened when the king was put aside and the
country was taken over in the namesake of Nepali people in the year 2006/07. The astounding
statistic of eleven prime ministers in ten year between 1990 and 2000 speaks the volumes about
the political instability that our country has. So the politics of Nepal has always disappointed the
citizens of this country which in turn has hampered country¶s economy. This has also provided a
room for many FDIs to think twice before investing in this country.

So all in all, today¶s manager should be equipped with all necessary weapons to overcome such
problems. There are many problems that will surround him or her in each and every point. He
should always be prepared to surmount those problems keeping the value of the company safe.

Technology is another area where the managers should focus on. We have a history of zero
technological achievements. I was amazed to know that Nepali hardware vendors were so quick
to import the mobiles phones from abroad and shipping it to India. But no Nepali IT firm made
any attempt to expand its horizons and produce the mobile phone in our own country. Rather, we
started to import phones from India when they started their own production houses in their home
country. So the managers should not use the technology but should also have to have an idea of
making such technology available. This would actually save them from being dependent on
others and make them self sufficient.

Keeping all such things in mind would definitely help the managers to stay and compete in the
business. They should always be aware of what¶s happening around them and make sure that
they are keeping all such things on track.