Made by Dmytro Koltsov ID 2444

1. The definition of Business Environment, “The sum total of all

individuals, institutions and other forces that are outside the control
of a business enterprise but the business still depends upon them as
they affect the overall performance and sustainability of the
business.”
Importance: On the basis of the foregoing discussion, it can be said
that the Business Environment is the most important aspect of any
business. To be aware of the ongoing changes, not only helps the
business to adapt to these changes but also to use them as
opportunities.

Business Environment presents threats as well as opportunities for any

business. A good business manager not only identifies and evaluates
the environment but also reacts to these external forces.
2. Business Environment Types :
Suppliers of Inputs
Customers
Marketing Intermediaries
Competitors
Publics
Economic Environment:
Social and Cultural Environment:
Political and Legal Environment:

3. Why is the environment important? You can see answer for this
question in the first one!
4. What are the characteristics of business environment?
1. Totality of External Forces
2. Specific and General Forces
3. Interrelatedness
4. Dynamic Nature
5. Uncertainty
6. Complexity
7. Relativity
5. What is internal and external environment?( EXAMPLES)
External: The Economy

In a bad economy, even a well-run business may not be able to survive.

If customers lose their jobs or take jobs that can barely support them,
they'll spend less on sports, recreation, gifts, luxury goods and new
cars. High interest rates on credit cards can discourage customers from
spending. You can't control the economy, but understanding it can help
you spot threats and opportunities.
Internal: Employees and Managers
Unless you're a one-person show, your employees are a major part of
your company's internal environment. Your employees have to be good
at their jobs, whether it's writing code or selling products to strangers.
Managers have to be good at handling lower-level employees and
overseeing other parts of the internal environment. Even if everyone's
capable and talented, internal politics and conflicts can wreck a good
company.