Business Environment Essay

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Business environment includes the internal as well as external factors that affect the operation of a business. Therefore, business environment is the sum total of the forces or the surroundings that have an influence on the business operations. The internal environmental factors are usually controllable because the management has control over it. Whereas the external environmental factors are difficult to control by the company. There are two types of external environment: Microenvironment and Macro environment.
It is important for every company to do environment analysis that is scanning the environment so that it may identify its threats and opportunities and improve its planning process.
1. Rebound in the housing market-
According to the recent reports, there have been some improvements in the national housing market this year. The average sale price for existing homes in June 2012 showed an increase of 7.9% when compared to the last year according to the National Association of REALTORS (NAR) reported that The median home sale price in York County for August was $142,000 down from $142,500 in 2011 according to a report by The REALTORS Association of York and Adams Counties (RAYAC) . There were around 349 properties sold in August 2012 compared to 322-sold last year. In August 2012, Adams County’s median home sale price was $162,000 with a total of 73 properties sold compared to 2011 when the median home sale price was $163,000 and 58 properties sold according to the report by RAYAC

2. Competitors-
The mortgage and banking industries have always been very competitive. (In York County alone, there are 275 banking and lending institutions.) The historically low intere...

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... RATIO = Debt/Equity
For the year 2012: 324/30308
For the year 2013: 370/37127

It is a leverage ratio, which indicates a relationship between the debt and equity. The ratio indicates the total liabilities of the firm and the total shareholders’ equity both the figures are present in the company’s balance sheet.
Lower the ratio, better it is. Higher the ratio, higher the risk. The ideal ratio is 1:1. In the year 2012, the HDFC bank’s ratio is 0.01. This means the company relies less on the outsiders and loans. This is a good indicator, which means the company was doing well in the last year. But in the year 2013, the ratio increased drastically. The ratio in the year 2013 was 9.9, which means that the bank borrowed a lot of money from the outsiders.


In this essay, the author

  • Reports that there have been some improvements in the national housing market this year. the median home sale price in york county for august was $142,000 down from $142,500 in 2011.
  • Explains that the mortgage and banking industries have always been competitive. the historically low interest rates are fueling buyers to shop around for the best deals, while new federal regulations will make it harder for small community banks to compete with the larger regional and national banks.
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