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Journal of Hotel & Business

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ISSN: 2169-0286
Commentary

Importance and Characteristics of Business Environment

Stephen Rogerson*
Department of Hotel & Business Management, Jamia Millia Islamia University, Jamia Nagar, Okhla, New Delhi, India

DESCRIPTION come in a variety of forms, including macro and micro

environments.
The corporate world operates in a social environment, much like
people do. Businesses must navigate a wide range of relevant The key component of any firm is its environment. Suppliers,
environments in order to operate effectively. The way the competitors, the media, the government, customers, market
company interacts with its surroundings determines how well it circumstances, investors, and numerous other entities operating
does. A company is doomed to slowly vanish into obscurity if it on the outside all contribute to the business environment. So
consistently shows no inclination to adapt to significant let's begin by learning about the business environment's basics
environmental changes. Businesses must not only be aware of and its significance.
the various environmental factors in order to be successful, but
also respect, adapt to, or otherwise control these factors. To Characteristics of business environment
survive and grow, the company must constantly assess its Complex
environment and adjust.
• It is complicated in the sense that it is highly challenging to
Any company's primary difficulty is staying alive. A business determine the precise influence of a given component on the
must have at least the following two capabilities to survive in the
entity.
long run. • Different elements of the business environment are closely
• The capacity for growth and interrelated and interdependent.
• The capacity for transformation • The other elements are impacted when one element changes.
The non-economic environment has an impact on the
In this chapter, the components of the business and commercial economy, which in turn has an impact on the economy.
environment are explained. The relationship between an
organisation and its environment, environmental analysis and Dynamic
scanning, and an organization's response to the environment are • Dynamic means are always changing, and the environment is
also covered in this chapter. volatile as a result of the various contributing variables'
constant shifts in nature, shape, and character.
Importance of business environment • Relativity.
Business environment is the sum of all internal and external • The term "business environment" is ambiguous. It varies from
aspects, including employees, customer wants and expectations, nation to nation and even from region to region.
supply and demand, management, clients, suppliers, owners, • Compared to communist economies, capitalist economies like
government activities, technical advancement, social trends, the US and the UK have a distinct type of atmosphere. A
market trends, and economic changes, among others. These country's economic system has an impact on the business
elements have a direct or indirect impact on how a firm operates climate.
and performs its functions. The environment and circumstance • The state of technology varies from one nation to the next.
of businesses or corporate entities are impacted by these aspects
when they are considered collectively. Uncertainity

By assisting in the identification of business possibilities, • The business environment is highly unpredictable since it is
utilising useful resources, and assisting in planning, the very difficult to predict the future.
organisational environment improves the overall performance, • Uncertainty also rises in volatile environments, or
growth, and profitability of the business. Business environments environments that change quickly.

Correspondence to: Stephen Rogerson, Department of Hotel and Business Management, Jamia Millia Islamia University, Jamia Nagar, Okhla, New
Delhi, India, E-mail: Rstephen123@gmail.com
Received: 18-Oct-2022, Manuscript No. JHBM-22-20718; Editor assigned: 25-Oct-2022, PreQC No. JHBM-22-20718 (PQ); Reviewed: 15-Nov-2022, QC
No. JHBM-22-20718; Revised: 23-Nov-2022, Manuscript No. JHBM-22-20718 (R); Published: 30-Nov-2022, DOI: 10.35248/2169-0286.22.11.026.
Citation: Rogerson S (2022) Importance and Characteristics of Business Environment. J Hotel Bus Manag.11:026.
Copyright: © 2022 Rogerson S. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which
permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.

J Hotel Bus Manag, Vol.11 Iss.6 No:1000026 1

Rogerson S
Multi-faceted
• The phrase suggests "having a variety of sections or sides."
• The perception of the observer is crucial since a new shift or
development may present new opportunities to one person
while being a threat to another due to the complexity,
ambiguity, and volatility of the business environment.
Far reaching impact
• The phrase means that anything "has significant and broadly
relevant impacts or ramifications."
• Every business organisation functions in a certain
environment that it both shapes.
• The business climate has a significant impact on the
organization's survival as well as growth. The business may fail
if you don't adapt to the new circumstances.
J Hotel Bus Manag, Vol.11 Iss.6 No:1000026
CONCLUSION
The phrase "business environment" refers to all the people,
groups, organisations that compete with one another, as well as
the government, courts, media, investors, and other factors that
are out of the control of business organisations but have an
impact on how well businesses perform. Because of this, changes
in government economic policies, quick technological
advancements, shifts in consumer preferences and tastes, rising
market competition, etc. are all beyond the control of business
organisations but have a significant impact on the performance
of the business.
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