The Nepalese Business Environment
Nepalese business Environment
Business is an organization, trade, commerce, profession, occupation and industry carried out to make profit through customer satisfaction.
Environment literally means the surrounding external objects influences or circumstances under which someone or something exists.
Business environment can be defined as the combination of the entire factor that influences a business activity. A business firm exist in two worlds i: e internal and external. Internal environment includes infrastructure, physical asset, human resources, organization structure, technology, work system etc. it is located inside the business organization and it is controlled by the business. It provides strength and weakness to the business. External environment includes outer environment i: e social, economical, political, legal and competitive forces. It provides opportunity and threats to business. So, they are both interrelated and interconnected. It operates in a dynamic environment. According to Keith Davis, “Business environment is the aggregate of all conditions, events and influences that surround and affect it “
Thus, Business environment is the combination of internal and external forces and condition prevalent inside and outside the boundaries of a firm.
Business environment consist of the forces and conditions outside the boundaries of a firm. These forces changes overtime and thus present the firm with opportunities and threats that influences its ability to carry out its operation efficiency to attain its objectives.
✓ Complex: Business environment is a complex due to its unpredictability. It consists of interacting events, condition, influences arising from varied sources.
✓ Dynamic: Business environment is dynamic. It is continuously changing in shape and character.
✓ Multifaceted: Business environment is multifaceted. Different observer may view a particular change in the environment