What Is Business Environment And Component Of Business Environment

What Is Business Environment And Component Of Business Environment

Business Environment  


  • 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 

 

Micro Environment:

  • Suppliers
  • Customers
  • Competitors
  • Marketing intermediaries
  • Financiers
  • Publics

Macro Dimensions of Business Environment:

  • Economic environment
  • Political and regulatory environment
  • Social and cultural environment
  • Demographic environment
  • Technical environment
  • National environment
  • Global environment

 

 

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