mthe state of being busy is

known as Business.
mi.e. production, extraction
or purchase or sales of
goods that are performed
for earning profits.
m `heword ¶Environment· refers to the
aspects of surroundings.

m `herefore, Business Environment

may be defined as a set of conditions
² Social, Legal, Economical, Political
or Institutional that are
uncontrollable in nature and affects
the functioning of organization.


m rccording to Keith Davis,µ Business environment
refers to the aggregate of all conditions, events,
and influences that surround and affect itµ

m rccording to J.KRIZ and C.DUGGr , µBusiness

environment consists of all external and internal
factors that influence the complex interaction of
the market, production, finance, the three basic
components of our business worldµ
1. Business environment is complex in nature.

2. Business environment is constantly changing

process.

3. Environment is Dynamic.

4. Environment regulates the scope of business.

5. Environment is Multi-faceted.

6. Environment is very uncertain.

º.Environment and planning.

8.Environment is inseparable part of

Business.

9.Swot analysis

10.Direct and long-lasting impact.

11.Business lacks control over

environment.

12.It includes both internal and external

environment.
j
   



m Itincludes 5 Ms-
m man,

m material,

m money,

m machinery and

m management,usually within the control of

business. Business can make changes in
these factors according to the change in
the functioning of enterprise.

   


`hose factors which are beyond the control
of business enterprise are included in
external environment. `hese factors are:
Government and Legal factors, Geo-
Physical Factors, Political Factors, Socio-
Cultural Factors, Demo-Graphical factors
etc.
It is of two `ypes:
1. Micro/Operating Environment
2. Macro/General Environment
m `he environment which is close to business and affects its
capacity to work is known as Micro or Operating Environment. It
consists of Suppliers, Customers, Market Intermediaries,
Competitors and Public.
m r
  `hey are the persons who supply raw material
and required components to the company. `hey must be reliable
and business must have multiple suppliers i.e. they should not
depend upon only one supplier.
m r


 Customers are regarded as the king of the
market. Success of every business depends upon the level of their
customer·s satisfaction. `ypes of Customers:
(i) Wholesalers
(ii) Retailers
(iii) Industries
(iv) Government and Other Institutions
(v) Foreigners
r

j
  
m `hey work as a link between business and final
consumers. `ypes:-
(i) Middleman
(ii) Marketing rgencies
(iii) Financial Intermediaries
(iv) Physical Intermediaries
r





Every move of the competitors affects the business.
Business has to adjust itself according to the strategies
of the Competitors.
r
 
rny group who has actual interest in business enterprise
is termed as public e.g. media and local public. `hey
may be the users or non-users of the product.
m It includes factors that create opportunities and threats to
business units. Following are the elements of Macro
Environment:
m r


   

 It is very complex and
dynamic in nature that keeps on changing with the change
in policies or political situations. It has three elements:
(i) Economic Conditions of Public
(ii) Economic Policies of the country
(iii)Economic System
(iv) Other Economic Factors: ² Infrastructural Facilities,
Banking, Insurance companies, money markets, capital
markets etc.
m r



   


m Following are included in non-economic environment:-
m r


  


m `he political environment in which the firm operates (or plan to operate)
will have a significant impact on a company's international marketing
activities. `he greater the level of involvement in a foreign markets, the
greater the need to monitor the political climate of the countries business
is conducted. Changes in government often result in changes in policy
and attitudes towards foreign business. Bearing in mind that a foreign
company operates in a host country at the discretion of the government
concerned, the government can either encourage foreign activities by
offering attractive opportunities for investment and trade, or discourage
its activities by imposing restrictions such as import quotas, etc. rn
exporter that is continuously aware of shifts in government attitude, will
be able to adapt export marketing strategies accordingly.

Read
more:http://www.exporthelp.co.za/modules/1_considering_exporting/env_p
olitical.html#ixzz15SPjo6GD
m Itaffects different business units extensively.
Components:
(a) Political Belief of Government
(b) Political Strength of the Country
(c) Relation with other countries
(d) Defense and Military Policies
(e) Centre State Relationship in the Country
(f) `hinking Opposition Parties towards
Business Unit




m S-strength: studying the internal environment helps

you to indentify are strengths & help us to develop it.
m W-weakness: weaknesses are also a part of internal
environment. it helps you to know where to improve
on.
m O-opportunities: we should know the opportunities
available in the market and grab them before are
competitor does that which forms a part of external
environment.
m `-threat: this being a part of external environment be
help us to b aware about the competitions which
might hamper our prestiege in the market.
 POLI`ICrL

› j SOCIrL
j

`ECH OL
OGICrL