Constituents of business environment pdf

Document Information click to expand document information Description: Business Environment. Did you find this document useful? Is this content inappropriate? Report this Document. Description: Business Environment. Flag for inappropriate content. Download now. For Later. Related titles. Carousel Previous Carousel Next. Jump to Page. Search inside document. Adverse Conditions To keep regular vigil on the changing Environment. International Environment Domestic Macroeconomic Env.

Channel Member Govt. Internal Environment. Heavy Gunner. Id Mohammad. Amit Kumar Giri. Tushar Shrivastav. Chinmay Ingole. Abdur-Razzaq Ahmed. Suneesha Arora Bhandari. Ram Mohanreddy. Prof Dr Chowdari Prasad.

Syed Asad. Pooja Langroo. Harshit Khandar. Sohan Kumar. Popular in Imports. Edward John. Analysis and Forecast to IndexBox Marketing. Radhika Murarka. Pooja Sawant. V Man. Ryan J Anward. Mrinal Kalita. Publics: Finally, publics are an important force in external micro environment.

The existence of various types of publics influences the working of business firms and compels them to be socially responsible.

External Macro Environment Apart from micro environment, business firms face large external environmental forces. An important fact about external macro environmental forces is that they are uncontrollable by the management. Because of the uncontrollable nature of macro forces a firm has to adjust or adapt it to these external forces. These factors are: 1. Economic Environment: Economic environment includes all those forces which have an economic impact on business.

Accordingly, total economic environment consists of agriculture, industrial production, infrastructure, planning, basic economic philosophy, stages of economic development, trade cycles, national income, per capita income, savings, money supply, price level and population.

Business and economic environment is closely related. Business usually collect all its required inputs from the economic environment available and also absorbs the output of business units. Political-legal Environment: Business firms are closely related to the government. The political- legal environment includes the activities of three political institutions, namely, legislature, executive and judiciary which usually play a useful role in shaping, directing, developing and controlling business activities.

The legislature takes decisions on a particular course of action, the executive implements those decisions through government agencies and the judiciary serves as a watch-dog for ensuring public interest in all the activities of legislature and executive. Technological Environment: Technological environment is exercising considerable influence on business. Technology implies systematic application of scientific or other organised knowledge to practical tasks or activities.

Business makes it possible for technology to reach the people in proper format. As technology is changing fast, businessmen should keep a close look on those technological changes for its adaptation in their business activities. Global or International Environment : Global environment plays an important role in shaping business activity. With the liberalisation and globalisation of the economy, business environment of an economy has become totally different wherein it has to bear all shocks and benefits arising out of global environment.

Socio-cultural Environment : Social and cultural environment also influences the business environment indirectly.

The social and cultural environment also influences the demand for a variety of goods and the type of employees the industry require. Moreover, the obligation of business to society also depends on the cultural milieu in which the firm is operating. Demographic Environment: The demographic environment includes the size and growth of population, life expectancy of the people, rural-urban distribution of population, the technological skills and educational levels of labour force.

All these demographic features have an important bearing on the functioning of business firms. The labour force in the country is always changing. This will cause changes in the work force of a firm. The business firms have to adjust to the requirement of their employees. They have to provide child care services, labour welfare programmes etc. The demographic environment affects both the supply and demand sides of business organisations.

The technological and educational skills of the workers of a firm are determined by the human resources available in the economy which are part of the demographic environment. The size of the population and its rural- urban distribution determine the demand for the products of industrial firms. The growth rate and the age composition of the population determine the demand pattern of goods. If the child population is high then the demand for baby foods and baby clothes will be high.

On the other hand, if the life expectancy of the people is high then the demand for goods will be those that will cater to the tastes and needs of elderly people. Editors' Picks All magazines. Explore Podcasts All podcasts. Difficulty Beginner Intermediate Advanced. Explore Documents. Constituents of Business Environment. Uploaded by Praveen Kumar. Did you find this document useful? Is this content inappropriate? Report this Document. Flag for inappropriate content. Download now.

Related titles. Carousel Previous Carousel Next. Creative cities as built places of the knowledge society. The Effects of the Economic Environment on Strategy. Jump to Page. Search inside document.

Constituents of Business Environment Environment of business can be classified as internal i. External environment External factors , these include Macro factors and micro factors. Social and cultural environment Social environment includes customs, traditions, beliefs, values, tastes and preferences, buying and consumption habits of various social groups of the society. Zezy Mahmoud.

Ankit Kumar Chauhan. Rabindra Rajbhandari. Chandni Sachdeva. Ajay Dhawal. Vinod G Ghate. Norsang Lama. Saud Ibna Zulfiquar. Fathi Salem Mohammed Abdullah.