Environmental Factors in Business
Business Environment
BBA 1st year – 2012-13
Introduction
Business environment includes the ‘climate’ or set of conditions: economic, social, political or institutional which have a direct or indirect bearing on the functioning of business It signifies external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise.
Features
Business environment is the sum total of all factors internal & external to the business firm that greatly influence their functioning It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions The changes in business environment are unpredictable
Business Environment differs from place to place, region to region and country to country
Importance
Business environment is complicated and active in nature and has a far-reaching impact on the survival and growth of the business.
Determining Opportunities and Threats Giving Direction for Growth Continuous Learning Image Building Meeting Competition Identifying Firm’s Strength and Weakness: Business environment helps to identify
Types of environment
Internal environment
External environment
Micro environment
Macro environment
Internal Environment
The internal environment is the environment that has a direct impact on the business
Important internal factors which have a bearing on the decisions of a business firm and which are generally controllable because the company has control over these factors:
Value system The value system of founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. Vision, Mission and Objectives The business domain of the company , priorities , direction of development, business philosophy,
BBA 1st year – 2012-13
Introduction
Business environment includes the ‘climate’ or set of conditions: economic, social, political or institutional which have a direct or indirect bearing on the functioning of business It signifies external forces, factors and institutions that are beyond the control of the business and they affect the functioning of a business enterprise.
Features
Business environment is the sum total of all factors internal & external to the business firm that greatly influence their functioning It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions The changes in business environment are unpredictable
Business Environment differs from place to place, region to region and country to country
Importance
Business environment is complicated and active in nature and has a far-reaching impact on the survival and growth of the business.
Determining Opportunities and Threats Giving Direction for Growth Continuous Learning Image Building Meeting Competition Identifying Firm’s Strength and Weakness: Business environment helps to identify
Types of environment
Internal environment
External environment
Micro environment
Macro environment
Internal Environment
The internal environment is the environment that has a direct impact on the business
Important internal factors which have a bearing on the decisions of a business firm and which are generally controllable because the company has control over these factors:
Value system The value system of founders and those at the helm of affairs has important bearing on the choice of business, the mission and objectives of the organization, business policies and practices. Vision, Mission and Objectives The business domain of the company , priorities , direction of development, business philosophy,