Meaning And Elements Of Business Environment Pdf
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Definition : Internal environment is a component of the business environment , which is composed of various elements present inside the organization, that can affect or can be affected with, the choices, activities and decisions of the organization.
- Internal Environment
- Components of Economic Environment, Business Environment B Com Notes | EduRev
- Business Environment: Nature and Significances of Business Environment
- Business Environment: Definition, Nature, Importance, and Components
Understanding the environment within which the business has to operate is very important for running a business unit successfully at any place.
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Learn Business Environment: Business means human activity directed towards producing or acquiring wealth through buying and selling goods. It is a complex field of commerce and industry in which goods and services are created and distributed in the hope of profit within a framework of laws and regulations.
Environment scanning can define as a process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business. No company can survive in the market by ignoring the effects of Business Environment. As well as, efficient management analyses the environment and makes changes in organizational policies to integrate its activities with Business Environment.
The most suitable example to prove the impact of Business Environment is the controversial case of Pepsi and Coke Company. Business Environments provide constraints as well as opportunities for the businessman.
For example, the regulation such as the MRTP Act and wealth restriction put constraints on the businessman. On the other hand, the liberalization policies, import relaxation policies bring opportunities for the businessman.
Thus the business is an economic activity performed by human connection with the production and exchange of goods and services with a profit motive under the laws and regulations of the country.
Based on the above definitions, it is very clear that the business environment is a mixture of complex, dynamic and uncontrollable external factors within which a business is to operate. The nature of Business Environment is simply and better explaining by the following approaches;. In original, business is a system by which it produces goods and services for the satisfaction of wants, by using several inputs, such as, raw material, capital, labor, etc.
In this approach, the business should fulfill its responsibility towards several categories of society such as consumers, stockholders, employees, government, etc. As per this approach, the business gives shape to the environment by facing the challenges and availing the opportunities in time. Also, the business brings about changes in the society by giving attention to the needs of the people. It is very much important for business enterprises to understand their internal environment, such as business policy, organization structure, etc.
In such a case an effective management information system will help to predict the business environment changes. The different kinds of economic systems influence the business in different ways. A businessman and business firm need to know about the role of capitalists, socialist and mixed economy.
Economic policy has its importance in the business environment and it has an important place in business. Also, the business environment helps to understand government policies such as export-import policy, price policy; monetary policy, foreign exchange policy, industrial policy, etc. The big plans or strategies and policies in the organization are formed keeping in mind the business environment because the strategies and policies have to execute in the presence of environmental factors. Scanning of environmental factors helps to find out the problems of business and makes a better strategy to resolve them.
So it is important to understand these changes as fast as possible. The business environment helps to scan the problems of the companies and also helps to remove them for future benefits. The businessman did changes in their internal environment also to match the external environment.
An enterprise must know the market structure and changes taking place in it. The knowledge about the increase and decrease in demand, supply, monopolistic practices, government participation in business, etc. Every business firm consists of a set of internal factors and it also confronts a set of external factors.
The following components factor you a more clear and comprehensive explanation about the different factors of the internal and external business environment. These factors are known as internal factors and are given below:. It involves the planning, acquisition, and development of human resources necessary for organizational success. It points out that people are valuable resources requiring careful attention and nurturing.
Progressive and successful organizations treat all employees as valuable human resources. Organizations face difficulties while carrying out modernizations or restructuring process by the resistance of employees.
So, the issues related to morale and attitudes should seriously be considered by the management. Moreover, global competitive pressures have made the skillful management of human resources more important than ever.
The support from the different levels of employees supports the management in the different decisions and their implementations. One company issues shares and debentures to the public to raise money and its instruments oversubscribe while the other company seeks the help of different intermediaries like underwriters to generate finance from the public.
This difference underlies the distinction between the images of the two companies. Also, the image of the company matters in certain other decisions as well as forming joint ventures, entering contracts with the other company or launching new products, etc. Therefore, building a company image should also be a major consideration for the managers.
Gone are the days when business was carried out by the single entrepreneur or in the formation of partnerships. Now it has reshaped itself into the formation of the company where it is run and controlled by the board of directors who influence almost every decision. Therefore, the composition of the board of directors and nominees of different financial institutions could be very decisive in several critical decisions.
The extent of professionalization is also a crucial factor while taking business decisions. To enjoy economies of scale, a smooth supply of produced materials and efficient production capacity are some of the important factors of business that depend upon the physical assets of an organization. These factors should always keep in mind by the managers because these play a vital role in determining the competitive status of a firm or an organization.
Technology is the application of organized knowledge to help solve problems in our society. The organizations which are using appropriate technologies enjoy a better competitive advantage than that of their competitors.
The organizations which possess a strong base of marketing resources like talented marketing men, strong brand image, smart salespersons, identifiable products, wider and smooth distribution network and high quality of different services, make effortless inroads in the target market.
As well as, the companies which are having so strong basis can enjoy the fruits of brand extension, form extension, and new product introduction, etc. The performance of the organization is also affected by certain financial factors like capital structure, financial position, etc.
Certain strategies and decisions are determined based on such factors. Also, the ultimate survival of organizations in both the public and private sectors is dictated largely by how proficiently available funds are managed. So, these were some of the factors related to the internal environment of an organization.
These factors are generally regarded as controllable factors because the organization commands control over these factors and can modify or alter as per the requirement of the organization.
Companies operate in the external environment that forces and shape opportunities as well as threats. SWOT Strengths, weaknesses, opportunities, and threats analysis is very much essential for the business policy formulation which one could do only after examination of the external environment. The external business environment consists of macro-environment and micro-environment. Suppliers, marketing intermediaries, competitors, customers, and the public operate within this environment.
Some of the factors may affect a particular firm and do not disturb the other ones. So, it depends on that to what type of industry a firm belongs to. The business must pay attention to their casual interactions since these factors set the stage for certain opportunities as well as threats.
These macro factors are, generally, more uncontrollable than the micro factors. A brief discussion of the important macro-environmental factors give below:. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed.
B Business Environment. What does mean Business Environment? Internal Business Environment: 1. External Business Environment: 1. Process Costing: Meaning, Characteristics, and Objectives. What is Vision Statement? Leave a Reply Cancel reply Your email address will not be published.
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Components of Economic Environment, Business Environment B Com Notes | EduRev
Meaning And Elements Of Business Environment — Today we will discuss about what is business environment and elements of business environment as well as we will learn how it effects business in English and Hindi. Business Environment refers to those aspects of the surroundings of business enterprise which have influence on the functioning of business. An organisation can survive and grow only when it continuously and quickly adapts to changing environment. We are living in the dynamic world which is undergoing a rapid change, because of coming up of new ideas, economic changes, political changes and new technology. Keith Davis has observed that business environment is the aggregate of all conditions, and influences that surround and affect the business. Internal Environment — includes internal factors of the business which can be controlled by business. It refers to environment within the organisation.
The major components of the economic environment which have their impact on the business activities are:. So business activities cannot be analyzed properly without reference to the economic system within which they are being carried out. The nature of economic system obtained within a country is a critical element of the economic environment of business of that country as it has a significant impact on the nature of economic environment. The nature of economic system can be described in terms of the system of consumption, production, distribution and exchange transaction. From the standpoint of these factors, the economic system can be broadly classified as capitalist, socialist or mixed.
Meaning of Business Environment Business environment is the totality of all external forces that are affecting the performance of business, viz general forces economic, social, political, legal and technology and specific forces investors, customers, competitors and suppliers. Why is it said that business environment is uncertain? Compartment Ans. Business environment is uncertain as it is difficult to predict future happenings when environment changes are taking place frequently. Delhi Ans. The following components are included in political environment of business: i Constitutional framework ii Political system iii Political structure iv Government interventions in business v Foreign policy and defence policy of the country.
importance of business environment;. ▫ Describe the various elements of business environment; and. ▫ Examine the economic environment in India and the.
Business Environment: Nature and Significances of Business Environment
Read this article to know about the definitions, nature and significance of business environment! This includes socio-economic conditions, technology and political conditions. Thus environment also contains hostilities and dangers that may be overcome by individuals and organisations.
Learn Business Environment: Business means human activity directed towards producing or acquiring wealth through buying and selling goods. It is a complex field of commerce and industry in which goods and services are created and distributed in the hope of profit within a framework of laws and regulations. Environment scanning can define as a process by which organizations monitor their relevant environment to identify opportunities and threats affecting their business. No company can survive in the market by ignoring the effects of Business Environment.
Вопреки желанию Стратмора специалисты по заделыванию прорех такого рода, опасаясь, что Танкадо попытается убедить людей в существовании ТРАНСТЕКСТА, начали распускать порочащие его слухи. Энсей Танкадо стал изгоем мирового компьютерного сообщества: никто не верил калеке, обвиняемому в шпионаже, особенно когда он пытался доказать свою правоту, рассказывая о какой-то фантастической дешифровальной машине АНБ. Самое странное заключалось в том, что Танкадо, казалось, понимал, что таковы правила игры. Он не дал волю гневу, а лишь преисполнился решимости.
Business Environment: Definition, Nature, Importance, and Components
Ведь он был пацифистом и не стремился к разрушению. Он лишь хотел, чтобы восторжествовала правда. Это касалось ТРАНСТЕКСТА. Это касалось и права людей хранить личные секреты, а ведь АНБ следит за всеми и каждым.
Хейл подошел к буфету, с грохотом открыл решетчатую дверцу, достал из холодильника пластиковую упаковку тофу, соевого творога, и сунул в рот несколько кусочков белой студенистой массы. Затем облокотился о плиту, поправил широкие серые брюки и крахмальную рубашку. - И долго ты собираешься здесь сидеть. - Всю ночь, - безучастно ответила Сьюзан. - Хм-м… - пробурчал Хейл с набитым ртом.
Никакой Северной Дакоты нет и в помине. Энсей Танкадо - единственный исполнитель в этом шоу. Единственный исполнитель. Сьюзан пронзила ужасная мысль. Этой своей мнимой перепиской Танкадо мог убедить Стратмора в чем угодно.
Meaning Of Business Environment
Пора было отсюда вылезать. Дернул. Никакой реакции. Он дернул шнурок в третий раз, более резко. И снова .
Я не видела смысла впутывать моего спутника, да и самой впутываться в дела, связанные с полицией. Беккер рассеянно кивнул, стараясь осмыслить этот жестокий поворот судьбы. Она отдала это чертово кольцо. - Я пыталась помочь умирающему, - объясняла Росио. - Но сам он, похоже, этого не. Он… это кольцо… он совал его нам в лицо, тыкал своими изуродованными пальцами. Он все протягивал к нам руку - чтобы мы взяли кольцо.
Должен быть другой выход. - Да, - в сердцах бросил Джабба. - Шифр-убийца. Но единственный человек, которому известен ключ, мертв. - А метод грубой силы? - предложил Бринкерхофф.
Необходимость убрать пробелы показалась ей странной. Это была мелочь, но все же изъян, отсутствие чистоты - не этого она ожидала от Танкадо, наносящего свой коронный удар. - Тут что-то не так, - наконец сказала .
Время идет, старик канадец может куда-нибудь исчезнуть. Вполне вероятно, он решит поскорее вернуться в Канаду. Или надумает продать кольцо.