1. STRUCTURE OF THE ENVIRONMENT

2. BUSINESS ENVIRONMENT Environment refers to the surroundings or milieu in which a person or organization operates . Business environment means the political , social, economic, technological and cultural forces outside a business firm with which the entity deals.

3. THREE STRUCTURAL LEVELS External Environment Operating Environment Internal Environment

4. EXTERNAL ENVIRONMENT The components in the external environment are broad in scope and are uncontrollable by the management of the organization. It include social factors, political factors ,legal factors, technological factors and economic factors. while economic factors constitute the economic environment, the other factors are clubbed together under the head non-economic environment.

5. OPERATING ENVIRONMENT The operating environment , though they are external to the organization, will directing interact and influence the organization. These components include- Customers, suppliers, competitors, Employees, Government, creditors and owners.

6. INTERNAL ENVIRONMENT The internal environment consists of functional areas of an enterprise. These includes- production , personnel, finance and marketing.