COMPONENTS OF BUSINESS ENVIRONMENT
Hello! Students, welcome to series on business environment. The topic of this lecture is Components of Business Environment. The objectives of this lecture are to make you understand the meaning of business environment,
relationship between business and business
environment, characteristics of business environment and to study the various components of the business environment.
In the last lecture we studied that internal and external factors affect the business and together the internal and external factors form the business environment.
We also discussed that the business and society are inter related that is the goods or services are provided by the business to the society for the consumption. In the last lecture we discussed the meaning and the characteristics of the business.
We also talked about the old and modern concept of business. The old concept of business emphasizes on earning of profit through buying and selling of goods and services. Whereas the modern concept of business says that business should earn profit through customer satisfaction and fulfilling the social responsibility.
2. MEANING OF BUSINESS ENVIRONMENT
To begin with let’s understand the meaning of business environment. We live in the world which is completely dynamic. Rapid changes keep taking place and are frequent because of the changes in social, political and economic environment.
These changes occur because of the advancement in technology
so the new ideas for a better society enriched with high standard of living
demands the business to be adjustable to these changes and it demands the business to be very flexible to provide the right thing at right price at right time.
But the thing should be of high quality to ensure customer
So, these changes surround the business enterprise and influence it in various aspects.
A business organization is...