Business Environment
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rajat_singlaBusiness Environment
Uploaded by
rajat_singlaBUSINESS ENVIRONMENT
MEANING
Business environment refers to those aspects of the surroundings of business enterprise which have influence on functioning of business.
Acc. To Arthur M. Weimer
Business environment is the climate or set of conditions economic, social, political or institutional in which business operations are conducted.
COMPONENTS OF BUSINESS ENVIRONMENT
Internal environment
External environment
Financial resources Objectives of business Managerial policies Work environment
Micro environment
Supplier Customer Competitor Intermediaries Public
Macro environment Economic Political Socio-cultural Technological Natural Demographic
International
INTERNAL ENVIRONMENT Internal environment includes internal factors of the business which can be controlled by business. It refers to environment within the organization.
EXTERNAL ENVIRONMENT External environment refers to external aspects of the surroundings of business enterprise which have influence on the functioning of business. These external aspects are beyond the control of business.
Types of external environment
MICRO
ENVIRONMENT : The forces which are close to the company and affect its ability to work, constitute micro environment .e.g. supplier, customer. MACRO ENVIRONMENT : It means general environment of business. Macro forces are uncontrollable in comparison to micro forces of environment.
ELEMENTS OF MACRO ENVIRONMENT
ECONOMIC ENVIRONMENT
POLITICAL ENVIRONMENT
Eco. Conditions
Eco. Policies
Ideology
Stability
Eco. System
Relation With Other nations
Socio-cultural Environment
Demographic Environment
Religion
Value system
Age
composition
Sex
composition
Caste system
Family system
Urbanrural
Family structure
Natural environment
Technological environment
International environment
