Business Environment

Introduction
What is Business Environment What is Business and Environment

Overview

A business can be defined as an Activity that provides goods and services to others who want or need them and seek the rewards for these efforts.
An environment can be defined as anything which surrounds a system. Therefore, the business environment is anything which surrounds the business organisation .
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List of Topics to be covered

Concept of Business Environment Social Environment Industrial Environment Economic Environment Technological Environment

Types of Business Environments OR Concept Of Business Environment

Micro Environment Macro Environment

Micro Environment

Include all those factors on which organisation has control and they affect its ability to serve its customers. It includes
I. II. III. IV. V. VI. Philosophy of organisation Suppliers Customers Labour Competitors Regulating Agencies

Macro Environment

A business and its micro environment operates in a larger macro environment. Macro Environment includes activities which are uncontrollable, so an organisation has to control or adapt itself in accordance with these macro forces.

Macro Environment

Macro Environment includes

I. II. III. IV. Social Environment of Business Industrial Environment of Business Economic Environment of Business Technological environment of Business

But Social Environment Of Business

Business organisation is a social unit as it is made of human beings or social people and it works for people, so it is bound to be affected by the social environment of business. Social environment consists of
I. II. III. IV. Social institutions Education and culture Social problems Role and responsibility of govt
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Industrial Environment of Business

Includes all the policies and acts designed to push the growth of Industries during a planning period.
The Industrial Environment consists of following forces..
I. II. III. Industrial policy IDRA Act 1951 MRTP Act

An industry grows and develops in the shade of these rules and regulations, formed by a government .

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Economic Environment of Business

Refers to all those economic factors which affect the functioning of a business unit.
The following factor constitute the Economic Environment of business..
I. II. III. IV. V. VI. VII. VIII. IX. Economic Systems Industry Agriculture Price Distribution Economic Reforms Human Resource Per Capita Income National income
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Technological Environment of Business

By Technology we understand all the skills ,knowledge, and procedures for making ,using and doing useful things . Features of Technology
I. II. Change and development Widespread effects

Technology reaches people through business. Technology has made the system more complex in business. Creates more intellectual and upgraded jobs. Encourages research .
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Conclusion

As we know that some environments are controllable for an organisation and some are not, so it is better to understand different kinds of business environments in order to adapt ones business according to these environmental forces.
If managers can not identify and understand the business environment, they might face a great difficulties in adapting their organisation's business efforts with the constantly changing environments.
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