What do you mean by Business

Environment??
• The environment of any organization is “
the aggregate of all conditions, events and
influences that surround and affect it.”

• In other words , business environment is

individual and organisation that exists
outside the business and have influence
direct and indirect to the business.
 Why study Business
Environment??
• The success of every business depends upon
adapting itself to the environment within which it
functions.
• For Example: When there is a change in
government policies, the business has to make
the necessary changes to adapt itself to the new
policies.
• Change in technology may render the existing
products obsolete, introduction of colour T.V
television replaced the black and white T.V or
introduction of computers replaced type writers.
• Introduction of Jeans affected traditional
wear. Etc. All these aspects are external
factors that are beyond the control of
business.
 Importance Of Business Environment
• Firm to identify Opportunities and getting the
first mover advantage. E.g. Maruti for small
cars.
• Firms to identify threats and early warning
signals. E.g.. Multinational entering Indian
market.
• Continuous learning: Environmental analysis
makes the tasks of managers easier in dealing
with business challenges.
• Image Building: By showing their sensitivity
towards the environment. E.g. Captive power
plants in factories.
• Meeting competition: It helps the firms to
analyse the competitors strategies and
formulate their own strategies accordingly.
• Identifying firms strengths and weaknesses
 TYPES OF BUSINESS ENVIRONMENT
There are two types of business Environment

 External Environment
 Internal Environment
 INTERNAL ENVIRONMENT
• Internal environmental factors are events that
occur within an organisation:
• Human resource
• Management
• Organisational culture
 HUMAN RESOURCE
• The characteristic of Human Resource is the
skill,ability,quality and commitment of the
Employee.
• Human Resource contribute to the strength
and weakness to the organisation.
• If a person in the super market does not
satisfy our wants we will not have the mind
set to go to the super market again.
 MANAGEMENT
• Managing the whole super market set up is an
important task.
• All hands should come together to form a
perfect management.
• In an supermarket from the manager till the
worker all should have enough ability to
mange the supermarket or else it will lead to
loss in customers.
 ORGANISATIONAL CULTURE
• Each organisation has each style of culture it
can be the dress code etc.
• Super markets emphasise of wearing uniforms
so that the organisation is properly
maintained.
• Its helps the supermarket to look perfect and
neat.
 EXTERNAL ENVIRONMENT
• The external environment of an organisation
are those factors outside the company that
affect the company's ability to function
• Climate
• Technology
• Political Climate
 CLIMATE
• Climate is a natural factor that can affect the
environment in any time.
• Due to Earthquake the whole supermarket
would have become un arranged.
• So it would affect the sale of the super
market for few days.
 TECHNOLOGY
• Technology is known as the systematic
application change.
• Technology is not constant it keeps on
changing.
• In a super market various technologies are
being used.
• Change in billing systems will lead to a
necessity in the change particular device
 POLITICAL
• The political environment is the government
and its policies.
• Often change in government leads to change
in policies this affects the business.
• In a super market change in government lead
to change in policies and it also leads to
change in the product.
• so there are high chance of affects.