Specific environment such as investors, customers, competitors, suppliers, etc. These forces may be divided under two categories, namely: i General environment; and ii Specific environment. But big enterprises are many a time directly influenced by the general external environment forces such as, introduction of new technology, trends in international business, trade policies of foreign governments, etc.
It should be noted that every business unit also has internal environment which includes production, finance, marketing, personnel, legal, etc. These include customers, owners and investors, suppliers, creditors, employees, trade unions, competitors, governments, etc.
This includes socio-economic conditions, technology and political conditions. The significance of business environment is explained with the help of the following points: i Help to understand internal Environment: It is very much important for business enterprise to understand its internal environment, such as business policy, organisation structure etc.
For instance, economic environment in India in the pre era and the post era can be distinguished clearly. Toynbee On the basis of the above definitions, it is very clear that the business environment is a mixture of complex, dynamic and uncontrollable external factors within which a business is to be operated.
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