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