The formula for business success requires two elements - the individual and the environment. Remove either value and success becomes impossible. Business environment consist of all those factors that have a bearing on the business. The term 'business environment’ implies that those external forces, factors and institutions are beyond the control of individual business’, organizations and their management and can affect the business enterprise as a whole.
A business’ environment influences the functioning of the business system. Therefore, a business environment may be defined as all those conditions and forces which are external to the business and are beyond the individual business unit, but they all operate within it. These forces are customers, creditors, competitors, government, socio-cultural organizations, political parties national and international organizations etc. Some of these forces affect the business directly whilst some others have an indirect effect on the business.
Business environments are the sum total of all things external to business firms and are aggregative in nature.
The external environment covers parts of the organization which are usually unable to be controlled within the organization and include factors such as social, legal, technological and political factors. The external environment can also include the people outside your organization who are also a part of it in some or the other way This can include society, government and stakeholders.
The internal environment is the environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has power over these factors. It can alter or modify factors such as its personnel, physical facilities, and organization and functional means, like marketing, to suit the current environment. The value system of the founders and those at the helm of affairs has an important bearing on the choice of the business, its mission and the objectives of the organization, including its business policies and practices.
A business’ environment influences the functioning of the business system. Therefore, a business environment may be defined as all those conditions and forces which are external to the business and are beyond the individual business unit, but they all operate within it. These forces are customers, creditors, competitors, government, socio-cultural organizations, political parties national and international organizations etc. Some of these forces affect the business directly whilst some others have an indirect effect on the business.
Business environments are the sum total of all things external to business firms and are aggregative in nature.
The external environment covers parts of the organization which are usually unable to be controlled within the organization and include factors such as social, legal, technological and political factors. The external environment can also include the people outside your organization who are also a part of it in some or the other way This can include society, government and stakeholders.
The internal environment is the environment that has a direct impact on the business. Here there are some internal factors which are generally controllable because the company has power over these factors. It can alter or modify factors such as its personnel, physical facilities, and organization and functional means, like marketing, to suit the current environment. The value system of the founders and those at the helm of affairs has an important bearing on the choice of the business, its mission and the objectives of the organization, including its business policies and practices.
