BUSINESS ENVIRONMENT

DIGITAL ALBUM

Submitted by,
GEETHU MERIN BLAISE
Roll No. 96
1st B.Ed
St. Thomas College of
Teacher Education,
Mylacombu
 CONTENTS

MEANING OF CHARACTERISTICS DIMENSIONS OF SIGNIFICANCE OF

BUSINESS OF BUSINESS BUSINESS BUSINESS
ENVIRONMENT ENVIRONMENT ENVIRONMENT ENVIRONMENT
 MEANING OF BUSINESS ENVIRONMENT
The sum total of all individuals, institutions and other forces that are outside the
control of a business enterprise but that may affect its performance.
 CHARACTERISTICS OF BUSINESS ENVIRONMENT

• Business environment is the totality of external forces

• Business environment includes specific forces that have direct impact on business
environment and general forces that affect indirectly
• Different elements of business environment are closely interrelated
• Business environment is dynamic in nature
• Business environment is largely uncertain
• Business environment is a complex phenomenon which is relatively easier to understand in
parts but difficult to understand in totality.
• Business environment is a relative concept since it differs from country to country and
region to region.
DIMENSIONS OF BUSINESS ENVIRONMENT

ECONOMIC SOCIAL LEGAL

ENVIRONMENT ENVIRONMENT ENVIRONMENT

POLITICAL TECHNOLOGICAL
ENVIRONMENT ENVIRONMENT
 COMPONENTS OF ECONOMIC ENVIRONMENT

• Rate of GNP
• Rate of saving and Investment
• Volume of imports and exports
• BOP and foreign exchange reserves
• Money supply in the economy
• Public debt
• Interest rates, Inflation rates
• Stock market indices
• Agricultural and industrial production trends
 COMPONENTS OF SOCIAL ENVIRONMENT

• Population
• Culture
• Literacy
• Standard of living
• Birth and death rates
• Life expectancy
• Consumption habits
 COMPONENTS OF LEGAL ENVIRONMENT

• Legislations passed by Government

• Administrative orders
• Court judgements
• Decisions rendered by various commissions and agencies at each government level
 COMPONENTS OF POLITICAL ENVIRONMENT

• The constitution of the country

• Level of political morality
• Political ideology of ruling party
• Prevailing political system
• Nature of relationship of our country with other countries
 COMPONENTS OF TECHNOLOGICAL ENVIRONMENT

• Nature of research and development

• Innovation
• New methods and techniques for operating business
 SIGNIFICANCE OF BUSINESS
CHARACTERISTICS OF BUSINESSENVIRONMENT
ENVIRONMENT
• Enables the firm to identify opportunities and getting the first mover advantage

• Helps the firm in identifying threats and early warning signals

• Helps the firm in tapping useful resources
• Helps the firm in coping with rapid changes
• Helps in assisting in planning and policy formulation
• Helps in improving performance
THANK YOU