Business its nature and environment

Concept of business environment

The post era is characterized by liberal economic policies and globalization. General environment forces exercise their influence on a business unit in an indirect manner, i. The knowledge about increase and decrease in demand, supply, monopolistic practices, government participation in business etc. In the past, the environment of man consisted of only the physical aspects of the planet Earth air, water and land and the biotic communities. In such case an effective management information system will help to predict the business environmental changes. For instance, economic environment in India in the pre era and the post era can be distinguished clearly. The business brings about changes in the society by giving attention to the needs of the people. But in due course of time and advancement of society, man extended his environment through his social, economic and political function. Specific environment such as investors, customers, competitors, suppliers, etc. These include economic, political, social, technological and global or international forces as of the business enterprises are not influenced directly by the general forces.

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.

business environment wikipedia

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Business, Its Nature and Environment : Richard D Steade :