GLOBAL BUSINESS

ENVIRONMENT
AN OVERVIEW

A.VEENA M.Com.,PhD(registered) Research Scholar

Madras Christian College, Chennai
veenaanbu@gmail.com

INTRODUCTION

Business environment is composed of two words business and environment

Business in simple terms the state in which a person remains busy.
Environment refers to the aspects of surroundings
Business Environment may be defined as a set of conditions social, economical,
political or institutional that is uncontrollable in nature and affects the functioning
of the organization.
Business Environment consist of various micro and macro factors which sets the
mission and vision statements of the organization.
Globalization describes the process by which regional economies, societies and
cultures have become integrated through a global network of political ideas through
communication, transportation and trade.
Traditional businesses are primarily product-centric where as e-businesses focus on
customers and adopt a customer-centric approach.
Emerging e-business and mobile technologies and the greater availability of
broadband telecommunications have analyzed their transformation into e-enabled
organization.

STATEMENT OF THE PROBLEM

Global Business Environment depends on both internal and external factors of the
economy which plays an important role in the competitive business field
Impact of both internal and external factors towards the business process and
activities leads to mission and vision statements of the organization.
Technological developments paves the way for the development of global business
environment.

REVIEW OF THE LITERATURE

Bill Faulkner says," Technology has had a tremendous impact upon the global business
environment. As continual enhancements are made, the world continues to grow smaller and
businesses have further reach than ever . The most important technological development to impact
the global business environment is the world of computers relies on internet facility, he adds.
The WTO claims to be the only global international organization dealing with rules od trade
between nations. The members negotiate and sign the agreements that may be ratified by their
parliaments.
The eminent sociologist, Emile Durkheim made two observations: as society grows more complex,
specialized institutions serving social needs develop and proliferate to maintain social stability; and
new institutional forms displace old ones only when the old ones no longer manage to serve their
original purposes effectively.
According to the IT Encyclopedia whatis.com, the term Digital divide describes the fact that the
world can be decided into people who do and people who dont have access to and capability to use
modern information technology such as the telephone, television or the internet. Of significance fact
is that the Digital divide is real, it exists and it can be seen as a technological opportunity by the
organizations rather than as a controversial issue to be debated upon endlessly.
Business people are increasingly turning to the computer to assist them in tracking and managing
the voluminous information about their companies and their competitors, as well as general trends
in the industry and economy. Data bases are the rich source of statistical and other types of data
regarding the economy, industry and the corporate sector.

OBJECTIVES AND RESEARCH METHODOLOGY

To observe the various factors influencing business environment and the impacts
over it.
To study how far the technology plays an important role in the global business
environment.
To discuss all the characteristics of global business environment.
Methodology adopted is the descriptive explanation about global business
environment in current scenario.
The data comprises of information from books, e-books and websites and the same is
thoroughly analyzed and correlated.

SCOPE FOR THE FUTURE RESEARCH

Future research can be done in further changes in the business environment and the
importance of technological influences in the business environment which leads to
various challenges and opportunities for the business organization in the competitive
business world.

CHARACTERISTICS OF BUSINESS ENVIRONMENT

Environment is Complex, as it is relatively easier to understand in parts but difficult

to grasp in its totality.
Environment is Dynamic, which change its shape and character.
Environment is Multi-faceted, as the shape and character of an environment assumes
depends on the perception of the observer.
Environment has a Far-reaching impact as the growth and profitability of an
organization depends critically on the environment on which it exists.

TYPES OF BUSINESS ENVIRONMENT

INTERNAL ENVIRONMENT: Internal environment refers to all factors within the

organization that impact strength or cause weaknesses of a strategic nature.
EXTERNAL ENVIRONMENT: External environment includes all the factors
outside the organization which provide opportunities or pose threats to the
organization.

ENVIRONMENTAL FACTORS INFLUENCING

BUSINESS

The environmental factors influencing the internal and external environment are as
follows:
SWOT Analysis
PEST Analysis
SWOT is an acronym for Strengths, Weakness, Opportunities and Threats.
PEST is an acronym for Political, Economical, Social and Technological factors.
Other factors: Environmental factors and Legal factors.

SWOT Analysis

PEST Analysis

OTHER FACTORS

Environmental Factors includes ecological and environmental aspects such as

weather, climate and climaye change, which may especially affect the industries such
as tourism, farming and insurance.
Legal Factors includes discrimination law, consumer law, antitrust law, and health
and safety law. These can affect how company operates, its costs and demand for its
products.

CONCLUSION

Impacts of various factors

Technological factors plays a vital role
Impact on the growth of the business organizations in a nation.