business environment and its structure

SUBMITTED BY :

Deepak

MBA 1st

Roll No. = 6

• Introduction of Business Environment

•Types of Environment

• External Environment Factor

• Internal Environment Factor

Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business

External Environment : conditions , entities , events and factors surrounding an organization that influence its activities and choice , and determine its opportunities and risk. Also called external environment.

Internal Environment : in multicellular organisms , the aqueous environment that is outside the sells but inside the body.

External Environment

MICRO MACRO

customer economical

prospective investor Political

competitors Technological

suppliers Social

management Legal

Employees Demographic

“the immediate small-scale environment of an organism or a part of an organism, especially as a distinct part of a large environment.”

“ the environment external to a business, including technological, economic , natural , and regulatory forces that marketing efforts can not control.”

MACRO ENVIRONMENT

Economic

Non Economic

Economic Problems

Functioning of Economy

Economic stages that exists at a given time in a country

Economic planning , such as five year plan , budget, etc.

Economic policies e.g., monetary policy

Regulatory Environment

Socio-Cultural Environment

Demographic Environment

Technological Environment

Political Environment

Regulatory Environment

. Constitutional Framework

. Policies relating to pricing and foreign investment

. Policies related to the public sector

Socio- Cultural Environment

. Social Customs & Rituals and practices

. Lifestyle patterns

. Family Structure

. Role & Position of men , women , children and aged in family & society.

Demographic Environment

. Growth of population

. Age Composition

. Life Expectancy

. Sex Raito

. Inter-state Migration

Technological Environment

. Sources of technology

. Technological development

. Impact of technology

Political Environment

. Political parties in power

. Political Philosophy