PPT - Business Environment | Business for A Level PDF Download

 Page 1


Prof S R Rawat
Page 2


Prof S R Rawat
? Understanding the environment within which 
the business has to operate is very important 
for running a business unit successfully at 
any place. 
? The environmental factors influence almost 
every aspect of business, be it its nature, its 
location, the prices of products, the 
distribution system, or the personnel policies
Page 3


Prof S R Rawat
? Understanding the environment within which 
the business has to operate is very important 
for running a business unit successfully at 
any place. 
? The environmental factors influence almost 
every aspect of business, be it its nature, its 
location, the prices of products, the 
distribution system, or the personnel policies
? Business environment may be defined as the total 
surroundings, which have a direct or indirect 
bearing on the functioning of business. 
? It may also be defined as the set of external 
factors, such as economic factors, social factors, 
political and legal factors, demographic factors, 
technical factors etc., which are uncontrollable in 
nature and affects the business decisions of a 
firm. It also includes the internal factors of the 
business i.e. owners , employees and their 
relationship with each other which can be 
controlled to some extent
Page 4


Prof S R Rawat
? Understanding the environment within which 
the business has to operate is very important 
for running a business unit successfully at 
any place. 
? The environmental factors influence almost 
every aspect of business, be it its nature, its 
location, the prices of products, the 
distribution system, or the personnel policies
? Business environment may be defined as the total 
surroundings, which have a direct or indirect 
bearing on the functioning of business. 
? It may also be defined as the set of external 
factors, such as economic factors, social factors, 
political and legal factors, demographic factors, 
technical factors etc., which are uncontrollable in 
nature and affects the business decisions of a 
firm. It also includes the internal factors of the 
business i.e. owners , employees and their 
relationship with each other which can be 
controlled to some extent
? The features of business environment can be 
summarized as follows.
? (a) Business environment is the sum total of 
all factors external to the business firm and 
that greatly influence their functioning.
? (b) It covers factors and forces like 
customers, competitors, suppliers, 
government, and the social, cultural, political, 
technological and legal conditions.
Page 5


Prof S R Rawat
? Understanding the environment within which 
the business has to operate is very important 
for running a business unit successfully at 
any place. 
? The environmental factors influence almost 
every aspect of business, be it its nature, its 
location, the prices of products, the 
distribution system, or the personnel policies
? Business environment may be defined as the total 
surroundings, which have a direct or indirect 
bearing on the functioning of business. 
? It may also be defined as the set of external 
factors, such as economic factors, social factors, 
political and legal factors, demographic factors, 
technical factors etc., which are uncontrollable in 
nature and affects the business decisions of a 
firm. It also includes the internal factors of the 
business i.e. owners , employees and their 
relationship with each other which can be 
controlled to some extent
? The features of business environment can be 
summarized as follows.
? (a) Business environment is the sum total of 
all factors external to the business firm and 
that greatly influence their functioning.
? (b) It covers factors and forces like 
customers, competitors, suppliers, 
government, and the social, cultural, political, 
technological and legal conditions.
? (c )It also includes the internal factors of the 
business i.e. owners , employees and their 
relationship with each other .
? Business Environment differs from place to 
place, region to region and country to 
country. Political conditions in India differ 
from those in Pakistan. 
? Taste and values cherished by people in India 
and China vary considerably.