CHAPTER 3 BUSNESS ENVRONMENT

Includes interest uinem Envirmnent refers, try tt

Economic Environment:
rates, e t .
surroundins or ttality h hCos in
rates,inflation Includes social forces like
which the buineN ELIsts
Social Environment: Dime Concept
custos,

Technical
traditions,

technological
social trends, etc.

Environment:
values,

innovations
Includes scientific and
and improvements.
mensions of Features
wwwwn
Totality of external forces
Specific and general forces
Environment :
Includes political Inter-relatedness
Political
conditions of a country. Dynamic in nature
Includes various policies, ment
gent
Legal Environment:
the government.
Uncertainty
rules and regulations of Complexity

situation where the Central Bank

country withdraws the old currency

of the
notes
Concept
Demonetizatio
10 tion
mportance Relativity

of certain denomination as an official mode Busines It enables the firm to identify opportunities
of payment.

Tries to decrease the corruption in an

eature Busines
Envinonment andgetting the first mover advantage.
It helps the firm to identify threats and early
warningsignals.
economy I thelpsin optimum utilisationof useful
Decreases the development rate. Tesources
Tries to aontrol the Black money inan It helps in coping with changes
Economy I t helpsin assistingin planning and policy
formation
t helps in improving pertormance

Increase in competition
Increase in demand
Rapid change in technological environment
Necessity of modificationsin operations
Development of human resources
Shift from product orientation to market orientation|