When it comes to the nature and the scope of business, it looks like it is very wide. It covers all the activities related to production and distribution of goods and services from the place productions to the final consumers with an aim to earn profit. There are two types of business activities. These Business Activities also known as business components. These components of business are actually define the scope of business to us. So lets talk about the scope of business organization with the help of these components.
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Today business has great importance in our lives, and we can easily see that people who own business are much successful in their lives. Before talking about the importance of business, lets talk about business first. The word “business” means the state of being busy. So “business” means all those human activities which are related to the production and distribution of goods and services with the object of earning profit. E.g. Farmer, Fisherman, Manufacturer.
The external factor evaluation matrix (EFE Matrix) is prepared by considering certain key external factors. These key external factors need to be properly summarized in order to develop an effective external factor evaluation matrix. The information related to economic, social, demographic, cultural, technological, legal, political, governmental & environmental variables is summarized & evaluated by the strategists in the preparation of External Factor Evaluation matrix (EFE Matrix).
Internal Factor Evaluation Matrix (IFE Matrix) is important for conducting internal strategic management Audit. The strengths & weaknesses of the organization in its different functional areas are highlighted through the IFE matrix. Moreover the relationship between different strengths & weaknesses of functional areas of the organization are also identified & evaluated by IFE matrix. There is no perfect scientific approach for developing an IFE matrix so intuitive judgments are helpful in this regard. There are certain factors that are used in internal factor evaluation matrix which are much more important to be understood than the actual numbers. The development process of IFE matrix is similar to External Factor Evaluation Matrix and is completed in the 5 steps.
Marketing plays very important role for the success of the organization & following are seven functions of marketing which should be understood by strategists in order to point out the strengths & weaknesses of the organization more effectively.