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The term Ǯbusiness environmentǯ refers to all forces

which are external to a business and beyond its
control. Types of business environment:-

— ×olitical environment
— Economic environment
— Social environment
— Legal environment
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Út comprises of following factors :-
— ×olitical organizations
— ×olitical stability
— Governmentǯs ideology
— Governmentǯs intervention in business
— Trade unionism
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— Jll these factors influence investment in business
activities and also the stability, growth and
profitability of business.

— For instance, in the late 1970ǯs due to change political

scenario, government allowed pepsi cola to enter the
Úndian market to give boost to the food processing
industry and that paved the way for entry of
multinationals in india in a big way.