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Business Environment Overview and Analysis

The document discusses the concept of business environment, defining it as the set of external conditions affecting business operations. It outlines the significance of understanding both internal and external environments, including micro and macro factors that influence organizations. Key elements include economic, social, political, and technological factors that create opportunities or pose threats to businesses.

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32 views11 pages

Business Environment Overview and Analysis

The document discusses the concept of business environment, defining it as the set of external conditions affecting business operations. It outlines the significance of understanding both internal and external environments, including micro and macro factors that influence organizations. Key elements include economic, social, political, and technological factors that create opportunities or pose threats to businesses.

Uploaded by

mahaanandbara
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd

Business

Environment

1
V. NEELAMEGAM
M.A., [Link]., M.B.A., A.M.T., MIMA.
Senior Lecturer
School of Commerce and Business
Administration
Faculty of Science and Humanities
SRM University
Tamil Nadu

VRINDA PUBLICATIONS (P) LTD.


DELHI - 110 091.
[Link]

2
CHAPTER
2

Business and Its


Environmental
Aspects

3
Definition of Business
“Business Environment encompasses
Environment
the ‘climate’ or set of conditions,
economic, social, political or
institutional in which business
operations are Conducted.” –Arthur
M. Weimer

“The total of all things external to


firms and industries that affect the
function of the organization is called
business environment.”
– Wheeler
4
Nature of Business
Environment
 System Approach
 Social Responsibility Approach
 Creative Approach

5
Significance of Business
Environment
 Help to understand internal
Environment
 Help to Understand Economic
System
 Help to Understand Economic
Policy
 Help to Understand Market 6
Internal Environment
 Business Ethics and Moral
Standards
 Work Environment

 Business and Managerial

Polices
 Industrial Relations

 Management Information

System
 Objectives of Business

 Prospects of Business

Development 7
External Environment
The external environment consists of all the
factors which provide opportunities or pose
threats to an organization. In a wider sense the
external environment encompasses a variety of
factors like international, national and local
economy. Social changes, demographic
variables, political system, technology, attitude
towards business, energy sources, raw
materials and other resources and many other
macro level factors make up the external
environment.

8
Micro Environment
 Competitors
 Customers
 Suppliers
 Public
 Marketing Intermediaries
 Workers and Their Union

9
Macro Environment
 Economic Environment of Business
National Environment
International Environment
 Non-Economic Environment of
Business
Socio-Cultural Environment
Natural Environment
Geographical Environment
Ecological Environment
Demographic Environment
Physical and Technological
Environment
Political and Government 10
THE END

11

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