Business Environment
Business Environment Is the Combination of two words
‘business’ and ‘Environment’.
Business:- Business
may be defined as the efforts of an individual or groups of individual engaged
in the activities of production of goods and services for the profit.
Environment:-
Environment is the
surrounding in which human beings live. It is a mixture of social, economic,
legal and technological factors. This Environment imposes some limits on human
beings.
Business Environment:-
Business Environment refers to those aspects surrounding the
enterprises which effects the operation and the effectiveness of enterprise.
It is a mixture of complex, dynamic and uncontrollable
external factors within which business has to run.
Nature of the business Environment:-
·
Internal
and external Environment:- Every business is surrounded with internal and
external factors which influences its strategy and decisions. A business firm
can control its internal Environment to some extent but have no control on its external
factors.
·
Dynamic
nature:- Every Business is created by several factors dynamic factors
such as economic, social, political, technical, religious etc. All factors are
dynamic and beyond the control of a firm.
·
External Factors are interrelated:- All the
external factors of business environment are interrelated like legal-political
environment influence economic and economic environment thus influence the
social environment.
·
Uncontrollable
Factors:- The factors
of external environment are uncontrollable and effects the firm’s operations to
a large extent. The firm has no control over the government policies, political
conditions, change in technology research and developments.
·
Responsible
for all factors:- A business firms fully responsible for all environment
factors such as, consumers, society, employee, government etc.
·
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