Introduction to Business Notes
Business Environment
Business environment refers to the conditions prevailing in a society in which a business is to be operated. It is defined as the total of all things external to business firms and industries, which effect their organization and operation. The number and scope of environmental factors, which effect business, is broad. There should be included all aspects of our social, scientific, economic, political and cultural life which have some bearing upon business.
Relationship of Environment to Business
To understand fully the nature of business, its structure, its organization and its behavior, one must look not only at the business properly, but also at the environment within which business operates. More specifically, this means that business exists in surroundings external to its direct or operating components of firms and industries.
The significant elements of environment for a business house comprise persons, physical resources and climate, economic and market conditions, altitudes and laws of the land. These elements effect the course of action of the company.
Business and its environment interact. In our business-oriented society, business has influenced environmental conditions probably as much as or even more than environmental forces have shaped business.
The firm depends upon its environmental conditions for the resources and opportunities necessary for its existence. The environment determines the limits of the firms’ activities. The environment contributes valuable resources to the business firm only if the firm provides the desired goods or services to the environment. A firm must look to public needs and attitudes remain sensitive to human values and alert to the social set up. Good businesses, therefore, are always responsive to the total environment in which they operate.
Economic Environment
Business is greatly influenced by the economy of the country. Its operational success depends upon an adjustment and
Business environment refers to the conditions prevailing in a society in which a business is to be operated. It is defined as the total of all things external to business firms and industries, which effect their organization and operation. The number and scope of environmental factors, which effect business, is broad. There should be included all aspects of our social, scientific, economic, political and cultural life which have some bearing upon business.
Relationship of Environment to Business
To understand fully the nature of business, its structure, its organization and its behavior, one must look not only at the business properly, but also at the environment within which business operates. More specifically, this means that business exists in surroundings external to its direct or operating components of firms and industries.
The significant elements of environment for a business house comprise persons, physical resources and climate, economic and market conditions, altitudes and laws of the land. These elements effect the course of action of the company.
Business and its environment interact. In our business-oriented society, business has influenced environmental conditions probably as much as or even more than environmental forces have shaped business.
The firm depends upon its environmental conditions for the resources and opportunities necessary for its existence. The environment determines the limits of the firms’ activities. The environment contributes valuable resources to the business firm only if the firm provides the desired goods or services to the environment. A firm must look to public needs and attitudes remain sensitive to human values and alert to the social set up. Good businesses, therefore, are always responsive to the total environment in which they operate.
Economic Environment
Business is greatly influenced by the economy of the country. Its operational success depends upon an adjustment and