Archive | Business Environment

Business Firm and Its Environment

After reading this article you will learn about business firm and its environment. Business firm may be visualized as an institution in society surrounded by environment i.e., various external forces influencing its functioning. It is said that business is a product of environment OR Business is the creation of its environment. (1) The nature of […]

Environment of Business: Micro and Macro

After reading this article you will learn about the micro and macro environment of business. Micro Environment of Business: The micro environment consists of the factors of the firm’s immediate environment, (Fig. 37.2). These include: a. Suppliers, b. Customers c. Competitors, d. The public, and e. Marketing intermediaries. a. Suppliers: Suppliers or vendors are those […]

Classification of Business Environment: Internal and External

After reading this article you will learn about the internal and external business environment.  Internal Environment: Survival of a business depends upon its strengths and adaptability to the environment. The internal strengths represent its internal environment. It consists of financial, physical, human and technological resources. Financial resources represent financial strength of the company. Funds are […]

Characteristics of Business Environment (7 Characteristics)

Seven essential characteristics of business environment are: 1. Totality of External Forces 2. Specific and General Forces 3. Inter-Relatedness 4. Dynamic Nature 5. Uncertainty 6. Complexity 7. Relativity! 1. Totality of External Forces: Business Environment is the sum total of all the external factors that influence the functioning of the business. (more…)

Understanding the Importance of Business Environment

Points that would help us to understand the importance of business environment are: 1. Enabling the identification of opportunities and getting the first mover advantage 2. Helping in the identification of threats and early warning signals or Radar effect 3. Tapping useful resources 4. Coping with the rapid changes 5. Assisting in planning and policy […]