Business Environment

Types of Environment


Internal Environment Macro Environment Micro Environment

Internal Environment

Internal environment refers to that of organization and is controllable.

The spirit of the internal environment of a firm is derived from its mission To fulfill the mission, the firm has a vision

The top management of the firm executes the mission through a strategy which is based on thorough planning in terms of clearly identified objectives to be achieved over a time

Most of these objectives are transcripted into quantified goals and tasks

Some internal factors are.



Culture and value system Mission and objectives Management structure and nature Human Resources

Macro Environment


The macro or general environment consists of factors external to the industry that may have a significant impact on the firms strategies.

Political Environment Regulatory and legal environment Demographic

Socio culture Technological Global environment

Economic environment National competitive advantage