Introduction to Business Environment
>> SEPTEMBER 5, 2010
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Business environment may be defined as the set of external and internal factors which affects the decisions of business. We can divide business environment into two parts
A. The Micro Environment of Business
These are powers which are deeply related with company and company can control these type of environment by improving its capacity and efficiency.
Suppliers are the persons who supply raw material to company.
Customers are the persons who buy goods from company.
3. Market Intermediaries
Market intermediaries are those person who helps company to sell its products.
4. Financial Intermediaries
Financial intermediaries are those institutions who provide loan, credit and advance to company.
Competitors are those who also sell same product of company.
Public is those group of people who can buy or who can show their interest to buy the products of company.
B. The Macro Environment of Business
Macro environment of business means all external factors which affects company and its business and there is no control of company on these factors.
1. Economic Environment
In economic environment, we can include govt. budget, import and export policies, economic system and economic conditions.
2. Political and Governmental Environment
In political and government environment, we can include legislature's decisions, executive's decisions and judiciary decision which affect company's business.
3. Socio cultural Environment
Socio-cultural environment includes morality, religion, education, health of peoples and family importance.
4. Natural Environment
In natural environment, we can include season, place elements, natural resources etc.
5. Demographic Environment
In demographic environment, we can include...