The term business environment of a company is defined as a pattern of all external influences that effect its life and development.
The survival of a business firm depends on its innate strength resources at its command and its adaptability to the environment and the extent to which the environment is favorable to development of the firm
Significance of Business Environment
There is a mutual interdependence between business and its environment. A business enterprises is an open system. It continuously interacts with its environment. Business takes inputs raw materials, capital, labor, energy etc. from its environment, and transform them into goods and services and then send them back to the environment.
COMPONENT OF BUSINESS ENVIRONMENT
- Marketing intermediaries
Macro Dimensions of Business Environment:
- Economic environment
- Political and regulatory environment
- Social and cultural environment
- Demographic environment
- Technical environment
- National environment
- Global environment