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Business and Its Environment
Business and Its Environment
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Business Law
Edition (3)
S.S. Gulshan
Excel Books
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Business Law
Edition (3)
S.S. Gulshan
Excel Books
What is the Environment of Business? Systems approach considers business unit as an open system which has continuous interaction with its external environment for its survival and growth. Thus, a business unit exchanges information, materials and other resources with the environment. It gets inputs such as materials, capital, energy, human resources, information from the ENVIRONMENT environment.
E N V I R O N M E N T
Business
E N V I R O N M E N T
Cont.
ENVIRONMENT 1 3
Business Law
Edition (3)
S.S. Gulshan
Excel Books
Also, the relationship between business and its environment is one of mutual benefit and therefore, it has been shown as a two-way relationship in Figure. This may be referred to as a symbiotic relationship as business functions in such a way that it both takes from and gives nurture to the various segments of its environment. Only through such a relationship, a business can survive and prosper.
Social System Including Moral Political System Including Legal
Business
Scientific And Technology System
Economic System
Cont.
Business Law
Edition (3)
S.S. Gulshan
Excel Books
What are the Different Segments Constituting Environment of Business? Business cannot function in isolation or in a vacuum. Its environment has, more
or less, a direct bearing on its success or otherwise. Business is a part of the total environment in which we live, being influenced by it, while being a force in influencing it. The environment of business comprises several segments which may be classified as under:
Social environment
Economic environment Politico-legal environment Technological environment International environment
1 5
Business Law
Edition (3)
S.S. Gulshan
Excel Books
Business Law
Edition (3)
S.S. Gulshan
Excel Books