Business Environment

what is Business Environment ?

Firstly you know that what is Business?

Business that a group of people that work together for a common goal, that benefit to the organization and its employees.

Environment :- Such factors that exist around the business.

Business Environment :- Business environment is that factors which affect the business organization. on the other hand,  such factors which influence the ability of company to serve the its customers.

There are two types of factors that affect the business organization.

1. Macro Environment:- political.technologocal,leagal,socials etc 
2. Micro Environment:-company policy, employees,machinery etcmdjawedakbar@gmail.com

Four characteristics of Business Environment

In trying to understand the environment and its influence on business, managers face many problems, mainly because of the following characteristics of the business environment:

a) Environment is complex:

The environment is not made of any one simple constituent but consists of a number of factors, events, conditions and influences, arising from different sources.

It is difficult to guess the factors that constitute a given environment. Hence, environment is at the same time complex and somewhat easy to understand in parts, but difficult in totality.

b) Environment is dynamic:

The environment does not remain constant but keeps on changing, For instance, the environment changes with the competitor's products and strategies, govt, policies, customers' preferences, etc.

Hence, in order to survive and grow, it becomes very important for every organization to understand its impact and adapt itself with such changes.

c) Environment is multi-faceted:

Same element or influence of environment affects different firms in different ways.

This is frequently seen when the same development, say liberalization, is welcomed as an opportunity by one company while another company perceives it as a threat.

d) Environment has a far reaching impact:

The environment has a long term and lasting impact on organisations. The growth and profitability of an organization depend critically on the environment in which it exists.