PREPARED BY:VIJAY DEWANI

CLASS :P.G.D.M 2
ND
SEM.
BUSINESS ENVIRONMENT
CONCEPT OF ENVIRONMENT
THE ENVIRONMENT OF ANY ORGANISATION IS
THE AGGREGATE OF ALL CONDITIONS ,
EVENTS AND INFLUENCES THAT SURROUNDS
AND AFFECT IT.
THE BUSINESS ENVIRONMENT CONSISTS OF
INTERNAL AND EXTERNAL FACTORS THAT MAY
INFLUENCE THE NATURE AND SCOPE OF
BUSINESS ACTIVITIES.
CONCEPT OF ENVIRONMENT
DEFINITIONS OF BUSINESS ENVIRONMENT:
BUSINESS ENVIRONMENT CONSISTS OF ALL
EXTERNAL AND INTERNAL FACTORS THAT
INFLUENCE THE COMPLEX INTERACTION OF
MARKET , PRODUCTION AND FINANCE THE
3 BASIC COMPONENTS OF THE BUSINESS
WORLD - J.A. KRITZ & C.T. DUGGAN
CONCEPT OF ENVIRONMNET
THE ENVIRONMENT INCLUDES FACTORS
OUTSIDE THE FIRM WHICH CAN LEAD TO
OPPURTINITIES FOR AND THREATS TO THE
FIRM.ALTHOUGH , THERE ARE MANY FACTORS
, THE MOST IMPORTANT OF THESE FACTORS
ARE SOCIO-ECONOMIC, TECHNOLOGICAL,
SUPPLIERS, COMPETITORS & GOVERNMENT
- W.F GLUECK & L.R. JOUCHO
CHARACTERSTICS OF BUSINESS
ENVIRONMENT
BUSINESS ENVIRONMENT
IS EXTERNAL.
IT IS COMPLEX IN
NATURE.
IT IS MULTI
DIMENSIONAL.
IT IS EVER CHANGING.
IT MAY BE FAVOURABLE
OR UNFAVOURABLE.
IT DEMANDS A HIGH
DEGREE OF ADAPTABILITY.
BUSINESS ENVIRONMENT
CONSTITUENTS
CONSTITUENTS OF BUSINESS
ENVIRONMENT
BUSINESS
ENVIRONMENT
EXTERNAL
ENVIRONMENT
INTERNAL
ENVIRONMENT
CONSTITUENTS OF BUSINESS
ENVIRONMENT
BUSINESS ENVIRONMENT CONSISTS OF TWO
SETS OF FACTORS:
a) INTERNAL FACTORS.
b) EXTERNAL FACTORS.
EXTERNAL ENVIRONMENT IS FURTHER
CLASSIFIED AS:
A. MICRO EXTERNAL ENVIRONMENT
B. MACRO EXTERNAL ENVIRONMENT




INTERNAL FACTORS
INTERNAL FACTORS: THE INTERNAL FACTORS
CONSIST OF FORCES OPERATING WITHIN THE
ORGANISATION SUCH AS QUALITY AND
QUANTITY OF MANPOWER ,
ORGANISATIONAL STRUCTURE ETC. THE FIRM
HAS CONTROL OVER THESE FACTORS.
INTERNAL FACTORS
VALUE SYSTEM
VISION , MISSION AND OBJECTIVES.
ORGANISATION STRUCTURE.
ORGANISATION RESOURCES.
COMPANY IMAGE AND BRAND EQUITY.
EXTERNAL ENVIRONMENT
EXTERNAL
ENVIRONMENT
EXTERNAL
MACRO
ENVIRONMENT
EXTERNAL
MICRO
ENVIRONMENT
EXTERNAL MICRO ENVIRONMENT
EXTERNAL MICRO ENVIRONMENT:MICRO
ENVIRONMENT IS ALSO KNOWN AS THE TASK
ENVIRONMENT OR OPERATING ENVIRONMENT.
1. FIRM
2. SUPPLIERS
3. DISTRIBUTORS
4. CUSTOMERS
5. COMPETITORS
6. PUBLIC

EXTERNAL MACRO ENVIRONMENT
THE MACRO ENVIRONMENT IS ALSO KNOWN AS
GENERAL ENVIRONMENT OR REMOTE
ENVIRONMENT.
1. PHYSICAL ENVIRONMENT.
2. DEMOGRAPHIC ENVIRONMENT.
3. ECONOMIC ENVIRONMENT.
4. POLITICAL ENVIRONMENT.
5. SOCIAL AND CULTURAL ENVIRONMENT.
6. TECHNOLOGICAL ENVIRONMENT.
7. INTERNATIONAL ENVIRONMENT.
S.W.O.T ANALYSIS