|
 |

|
|

Presenting by
Joseph Alexander
No :107
 Also known as ecological,physical or geographical
environment

It encompasses natural resource endowments

,weather,climatic conditins,ecological factors,
infrastructural factors like power, water
resources,airways,ports,surface transport etc..

Geographical and climatic factors force a change in

the market mix and product mix of production and
marketing strategies.

|
 | |
|

 (ith the rapid growth in population and
industrialization large quantities of water began to be
needed for some domestic and industrial purposes,
transportation, production, energy and power.

Industries were therefore generally located

near waterways and close to places where other natural
resources could be available in plenty.

|
 | |
|

'efinition

Dzthe natural environment ultimately is the source and

support of everything used by businesses(and almost
any other human activity)-every raw material, every
energy resource, every life sustaining factor, even
every waste disposal sitedz
(atrick and (ood

The natural environment

determines what can be done in a society and how
institution can function.
|
 | |
|

 Availability of resource is the fundamental factor in
the development of business in societies.

Climatic and weather conditions affect the location

of certain industries
E.g. Cotton Industries

cold climate -- room heaters

hot climate -- air conditioners

|
 | |
|

Topological factors may affect the demand pattern of
businesses.

Hilly areas use jeeps rather than cars.

Natural environment varies from country to country

and religion to religion.
Many MNCǯS have to adopt their marketing strategies
and product mix strategies to suit to the demands of
the poor population and with low standards of living.

|
 | |
|

Components of Natural environment

1) Natural resources,raw-materials,energy
2)Ecology
3)Climate

|
 | |
|

1. Natural resources,raw-materials,energy

Business depends upon different kinds of natural

resources.
Every firm is concerned with the steady availability of
raw material.
The availability (supply) and cost of raw material is
essential.
other thing is energy. it is important as above.
Escalation of energy cost is a source of concern for
any business firm.
2.Ecology

is the scientific study of the relation of living

organisms with each other and their surroundings.

Business firms would have to know how stringent the

environmental regulations and to what extend these
factors affect their business prospectus
3.Climate

Mostly demand of products depend upon the climate.

Firms dependent on climate dependent raw materials

too have worry about climate.
ý Impact on Business

Natural environment exerts significant influence on

business activities.
Business enterprises have exploited natural
resources most carelessly and recklessly , they have
not made the desired contribution towards nature.

If business establishment do not discharge their

obligations towards ecological environment not only
their working but also very existence may be
threatened. |
 | |
|

So business should utilize the opportunities offered
by the natural environment.

Manufacturing Ȃ depends on physical environment for

inputs.

eg:- Mining of coal and ores

'rilling of oil
Quarrying of stone clay or other materilas

All depends on the availability of minerals for which

nature in the repository. Minerals are scattered over
the earth. |
 | |
|

Agriculture

an economic activity which depends more on

nature.
Types of crops that can be grown in an area
depend first upon climate and soil.

There is little that man has ever been able to do

against the vagaries of weather such as unreasonable
frosts, unexpected droughts or periods of super-
abundant rainfall
|
 | |
|

Transportation and communication

'epend to a large extend on geographical

conditions geographic conditions.

Trade between two regions of a country or

between two countries is influenced by geographic
factors.

|
 | |
|

 The natural environment is particularly important to
man in two respects:-
1 1.I t is storehouse of certain source materials that will
be consumed by him ultimately. And
2 2.I t provides certain physical and biological
conditions within and on which mans production
exchange, consumption and happiness depend.

|
 | |
|

The main trends in the environment:-

1.Impending shortages
2.Increased cost of energy
3. Increased levels of pollution
4.Govt intervention in Natural resource management.

|
 | |
|

|
 | |
|