OBJECTIVE

Govind and Naman are setting up a travel agency; they have their goals and objectives to

achieve their dreams. However, they went to seek advice of their professor in order to be sure

they are not missing out anything in their business plan. The objective of the cases is

therefore to identify and state the component of business environment as highlighted in the

case study, State any two features of business environment as discussed by professor Mehta.

Finally objective is to state two points of importance of business environments as mentioned

by the professor.

Select the best approach. -- 100 to 150 words Choose an analytical approach to increase
awareness. In the preliminary stages of solving management problems, An analytical case
study primarily focuses on what has occurred and why.

In order to do justice to this case, it is better to start with the concept of organization as an

open system and relate it to the interaction between the organization and it environments. on.

The problem in this case is the fact that the potential owner of the travel agency only did a

vocational training. The training gave them an idea and the objective to be achieved.

However, there lack of knowledge in the development of business plan came to bear as they

were focusing only on the business without looking at the interaction of this business with the

environment.
Select a problem-– 100 to 150 words the goal is to make solution recommendations,
Conduct research for your case study. Examine the facts, dynamics, communications, and
all relevant aspects of the particular situation. Research might involve reviewing written
documents or looking up relevant statistics.

This is not a research paper as such not applicable.

Set the Scope for Readers – 100 to 150 words Explain the aim of the case study in the
opening paragraph. The goal may be to understand the challenges of an organization or
to solve interdepartmental conflicts. Provide an industry or company overview. Certain
facts or challenges may be common in the particular industry. For example, employee
turnover or attrition rate may be a common problem in the software industry, requiring
HR policies and HR empowering teams. Explain relevant factors to readers. Outline
relevant theories and knowledge. Case studies for academic programs typically require
reference to theories and information presented in class. Refer to these theories and
explain their relevance to solving the real-life issues in the case. For example, a theory
may be required that training employees in too large a group leads to less individualized
attention and inadequate skills mastery.

The aim of the study is to provide an insight into the effect of the business environment on

organizational performance by the pioneer of the Travel agency business( Naman and

Gavind). The most single significant influence on organisational policy and strategy is the

environment outside and inside the organisation (Duncan, 1972 and Grant, 1999). The Travel

agency is an open system that gets its resources from the environment and transforms same to

output.in order to supply its services to the environment. There are two different levels of the

business environment, Internal environment and External environment. The external

environment can be categorized into two, The Micro environment – Suppliers of inputs,

customer, Market intermediaries, Competitors and the publics. While the macro environments

includes Political, socio cultural, Technology, Economic etc. The internal environment is
close to the business and they include Value systems, mission and objectives, organizational

structure, corporate culture, etc. The external environment provides opportunities and threats

to the business community. Therefore in order to grasp the opportunities presented by the

business environments and face the threats the business must dynamically seek to understand

and take into consideration the business environment on a continuous basis.

Focus on Issues and Solutions – 100 to 150 words: Identify all

relevant issues. If many issues exist, focus on the most important ones.
Some issues may be caused by underlying problems. For example,
conflicts between team members may be due to unclear workplace
policies or employee responsibilities

It is important to know that the interactions between the business and its environment

operates in both directions. The external environment impacts on the business and at the same

time the business can influence their environment. Awareness of constant changed and trends

can make or mare the business performance. Most especially in the world of globalization

and technological advancement. This has made the demand from customers to be more

complex and their shifts in preferences. This may hinder business if we do not make adequate

preparation to adapt the service to changes in the taste and consumer preference. Competition

is also another important part of the business environment they must constantly observing
with a view to create plans in order to reduce the threat posed by the competition.

Recommend solutions. – 100 words List the most effective solutions first and explain
how they will solve core issues. Address the challenges that might
accompany suggested solutions. For example, cross-cultural conflicts in
an organization might require additional training for managers, which
may require funds or an extensive search for topic experts.

The best way to keep improving business performance is to align the business with the

environment. Understanding both the internal and external environment and its effects on

business operations is very important to the study and practice of business. Naman and

Gavind may need to attend trainings on the business environment or employ or hire a

consultant that will be able to provide adequate information on their business environment

and plans to minimize the threat and exploit the opportunity presented by the environment.

Provide a Clear Conclusion – 200 to 250 words: Write a conclusion that summarizes
the main issues and solutions. Emphasize the most effective recommendations. Include
a reference to relevant management theories. Explain in a few sentences how these
theories support your conclusions.

When setting up a business like a travel agency is it very good to set up the goals and
objectives of the business. However, this goals and objective must take into consideration the
business environment that may impact on the performance of the organization. The business
environment that may impact the setup of the travel agency can be classified into two. The
internal Environment and External Environment the internal environment is composed of the
factors within the organization, including current employees, management, and especially
corporate culture, which defines employee behavior. The internal environment has two
components which are the Strength and weakness of the organization. The external
environment is factors that are external to the business organization but have impact on the
business decision. The external environments are further broken down into Macro and Micro
Environment. Micro Environment deals with the Individual and the Industry like Customer,
Supplier, competitors and Public, while the Macro environment deals with the aggregate
these includes the Social-cultural, Economic, Political, Technology, Global, Demographic and
others.

Understanding the internal environment otherwise called organizational environment will

enable to recognize their strength and weakness. The strength will enable them to harness the
Opportunities within their external business environment while minimizing their weakness.
The understanding of their external environment will allow them to understand the threat and
opportunities within the external factors.

Reference – The references related to the topic. Include a list of references. Cite
sources for all statistics, definitions, facts and other research.

Worthington and Chris Britton: The Business Environment, Pearson 2006

Justin Paul: Business Environment, 1e 2006, Tata MH• Francis Cherunilam:

Business Environment: Text and Cases, 17/e, Himalaya, 2007.

Campbell, D. J., Organizations and the Business Environment, Butterworth-Heinemann,

1997.

Morrison, J. The International Business Environment: Diversity and the Global Economy,
Palgrave,