Preview

Introduction to Business Notes

Powerful Essays
Open Document
Open Document
1831 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
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

You May Also Find These Documents Helpful

  • Good Essays

    The six environments of business are Domestic, Global, Technological, Political-Legal, Sociocultural, and Economic and all are interlinked in some form or fashion. One affects the other at different levels at different rates of advantage or disadvantage. A business’ environment are factors that affect the business’ ability to operate, which may tie in one or more of the types listed above. When one looks at the environment of Domestic Businesses understand that it is considered to be solely within the country of origin. It does not cross international borders by imports or exports.…

    • 600 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Business environment is the combination of all centralized and peripheral aspects that affects a corporation. Both external and centralized aspects can repercussion each other and endeavor together to influence a corporation. The business environment includes some elements like clients and suppliers, competition and owners, technology, government initiatives and market, social and economic trends. The internal factors are that impact the approach and success of the company’s operations. The peripheral environment includes of different kinds of aspects out of the company doors that typically don't have much control over. Managing the strengths of internal operations and recognizing potential opportunities and threats outside of company’s operations are keys to business success. Premier Food is one the famous and largest retailer in UK which is primarily renowned for food manufacturing. Premier Food is well managed in its internal and external factors which lead them to progress successfully.…

    • 2863 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Business Environment P5

    • 618 Words
    • 3 Pages

    The business environment consists of different influences that are outside of a business from political, social and legal changes. These influences can change for the better or for the worst for the business economic factors.…

    • 618 Words
    • 3 Pages
    Good Essays
  • Better Essays

    A business environment can be defined as the surroundings, external factors, circumstances and all the influencing factors that affect the operations of a business.…

    • 4202 Words
    • 17 Pages
    Better Essays
  • Powerful Essays

    Pestel Eden

    • 2026 Words
    • 9 Pages

    It is of great importance to make an analysis of the environment in which an organisation operates in order to develop and implement a suitable, successful strategy for the company. According to Johnson, Scholes and Whittington (2008) the business environment of a company is an important issue determining its survival and success. There are several layers of this business environment – the macro environment, the industry or sector layer, the layer with competitors and markets.…

    • 2026 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Today I will explain one by one each of the seven external factors. To start: The Political-Legal Environment: It is a political and corporate relationship. Companies aim to franchise with and support political candidates through their activities to help promote their business. Socio-cultural Environment: A business’ development and prosperity is based on the cultural and social value of whatever they have to offer. The world’s view on things are always involving so a business must always stay up on these ever changing trends to better promote and develop new products.(Ebert & Griffin, 2009) Technological Environment: The technological environment has been created to update and refresh our views and lifestyles by creating new goods and services. Economic Environment: The economic environment is the platform for all businesses world wide. It relegates a business spending patterns, pricing, marketing strategies etcetera. Competitive Environment: The competitive environment consists of the general competition between companies. They compete for the limelight to attract buyers. This has to be done properly for proper promotion is crucial to a business’ continuity. Demographic Variables: is akin to data mining; used to help identify consumer qualities; such as the age, gender, income, race, and etcetera. This helps determine a markets segmentation strategy. As for the Natural Environment: it is the typical weather, and natural resources that concern human continued existence and market activity. (Natural Environment, 1999-2010)…

    • 679 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    In any business organization there are two different environments, internal and external environment. Both environments are affect the business in their own ways. Internal environment is about preparing and learning how to achieve the objectives of a product in external environment. External environment can be influenced by many factors for example, politically, socially, legally and culturally. External environment can be studies into two parts, general and immediate environment. Firstly, general environment which involves economic, political, legal, and social. Secondly, immediate environment which involves suppliers, competitors, labour, market, and financial intuitions.“Business activity is a fundamental and universal feature of human existence and yet the concept of business is difficult to define with any degree…

    • 1973 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Economic Environment refers to all those economic factors, which have a bearing on the functioning of a business. Business depends on the economic environment for all the needed inputs. It also depends on the economic environment to sell the finished goods. Naturally, the dependence of business on the economic environment is total and is not surprising because, as it is rightly said, business is one unit of the total economy.…

    • 2877 Words
    • 12 Pages
    Better Essays
  • Good Essays

    business environment

    • 1075 Words
    • 5 Pages

    and Operating Environment and has a direct bearing on the operations of the firm. Changes in…

    • 1075 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Essays

    • 2112 Words
    • 9 Pages

    3. Inter-relation. All the forces and factors of Business Environment are inter-related to each other.…

    • 2112 Words
    • 9 Pages
    Powerful Essays
  • Satisfactory Essays

    ghost

    • 324 Words
    • 2 Pages

    9. Business Environment – the setting in which business operates. The 5 key components are: economic, competitive, technological, social, and global environment.…

    • 324 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Economic Environment

    • 650 Words
    • 3 Pages

    Business environment encompasses all those factors that affect a company's operations, and includes customers, competitors, stakeholders, suppliers, industry trends, regulations, other government activities, social and economic factors and technological developments.…

    • 650 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Be Notes

    • 30703 Words
    • 123 Pages

    Business environment in the present era of economic liberalization, privatization and globalization is becoming increasingly complex, unstable and unpredictable. The environment is the resultant of a number of interacting and constantly changing social and economic forces and thus remains in a state of flux. Variations in the overall and sectoral rates of growth…

    • 30703 Words
    • 123 Pages
    Powerful Essays
  • Good Essays

    The term business environment implies to external forces, factors and institutions that are beyond the control of an individual business organization.…

    • 671 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

     The environment imposes several „constraints‟ on an enterprise and has a considerable impact and influence on the scope and direction of its activities. The enterprise, on the other hand, has very little control over its environment.  The business environment presents two challenges to the enterprise, viz., the challenge to combat the environmental threats (such as intensification of competition, declining market etc.) and to exploit the business opportunities.  The basic job of the enterprise, therefore, is to identify with the environment in which it operates and to formulate its policies in accordance with the forces which operate in its environment.…

    • 2402 Words
    • 10 Pages
    Powerful Essays

Related Topics