Essays
Business Environment
CHAPTER – 3
BUSINESS ENVIRONMENT
MEANING
Business environment can be defined as "the forces, factors and institutions with which the businessman has to deal with to achieve its objectives". In general words we can say business environment is the surroundings in which business exists. Whenever any businessman is operating or working then he has to interact with the customers, suppliers and he has to perform the transactions within the rules and regulations of the government. All these persons, institutions and policies form a part of business environment. The complete awareness and understanding of business environment is known as environment scanning.
Business Environments provide constraints as well as opportunities for the businessman. For example, the regulation such as MRTP Act and wealth restriction put constraints on the businessman.
On the other hand, the liberalisation policies, import relaxation policies bring opportunities for the businessman. Categories of Environment
1. Economic Environment. It consists of factors like fiscal policy, monetary policy, industrial policy and economic system of our country.
2. Non-Economic Environment. It consists of social, political, legal and technological aspects of business environment.
Characteristics
1. All the external forces. Business Environment includes all the forces, institutions and factors which directly or indirectly affect the Business Organisations.
2. Specific and general forces. Business environment includes specific forces such as investors, customers, competitors and suppliers. Non - human or general forces are Social, Legal,
Technological, Political etc which effect the Business indirectly.
3. Inter-relation. All the forces and factors of Business Environment are inter-related to each other.
For example with inclination of youth towards western culture, the demand for fast food is increasing, 4. Uncertainty. It is very difficult to predict the
CHAPTER – 3
BUSINESS ENVIRONMENT
MEANING
Business environment can be defined as "the forces, factors and institutions with which the businessman has to deal with to achieve its objectives". In general words we can say business environment is the surroundings in which business exists. Whenever any businessman is operating or working then he has to interact with the customers, suppliers and he has to perform the transactions within the rules and regulations of the government. All these persons, institutions and policies form a part of business environment. The complete awareness and understanding of business environment is known as environment scanning.
Business Environments provide constraints as well as opportunities for the businessman. For example, the regulation such as MRTP Act and wealth restriction put constraints on the businessman.
On the other hand, the liberalisation policies, import relaxation policies bring opportunities for the businessman. Categories of Environment
1. Economic Environment. It consists of factors like fiscal policy, monetary policy, industrial policy and economic system of our country.
2. Non-Economic Environment. It consists of social, political, legal and technological aspects of business environment.
Characteristics
1. All the external forces. Business Environment includes all the forces, institutions and factors which directly or indirectly affect the Business Organisations.
2. Specific and general forces. Business environment includes specific forces such as investors, customers, competitors and suppliers. Non - human or general forces are Social, Legal,
Technological, Political etc which effect the Business indirectly.
3. Inter-relation. All the forces and factors of Business Environment are inter-related to each other.
For example with inclination of youth towards western culture, the demand for fast food is increasing, 4. Uncertainty. It is very difficult to predict the