Business environment

2. Environment mainly refers to
external and internal forces
that influence business
working.

3. It includes all those factors which
influence business and which are
present within the business itself.
These factors are usually under the
control of business.

4. 1. Objectives of Business.
2. Policies of Business.
3. Production capacity.
4. Production methods.
5. Management information System.
6. Organizational Structure.
7. Features of human resource.

5. External environment includes
all those factors which
influence business and exist
outside the business.
Business has no control over
these factors.

6. 1. Customers.
2. Suppliers.
3. Competitors.
4. Public.
5. Marketing Intermediaries.

7. a) Natural/Physical Environment
b) Technological Environment
c) Legal Environment
d) Social Environment
e) Political Environment
f) Economic Environment

8. Factors like climate, earth quakes,
land slides, drought, floods,
natural resources etc., have
considerable influence on the
functioning of a business.

9.  It affects inputs, ex:- mining, drilling which
may be affected by nature(non – availability
of resources and materials).
 It affects production at times of
earthquakes, land slides etc.,
 It affects trade/distribution of goods at
times of floods or goods may perish/spoil
due to climatic conditions.

10. It means the development in the
field of technology which affects
business by new inventions of
production and other
improvements in techniques to
perform the business work.

11.  New inventions to produce
products.
 New inventions relating to
marketing like BPO(Business
Process Outsourcing) for e-
selling online in international
market.

12. Advantages:-
1. Increased reach.
2. Speed of flexibility.
Disadvantages:-
1. Competition.
2. Homogenization.

13. Government controls the
business activities in many
ways directly and
indirectly.

14.  Controlling what they produce:-
In order to safeguard the interest
of the community government may
ban or limit the production of
certain goods and services.

15. Employees protection
legalizations:-
Government may pass laws
to protect the interest of
employees.

16.  Legalizations for health and
safety at work.
 Protect employees against
unfair dismissal.
 Ensure fair wages for the
employees.

17. Weight and measures act.
Trade description act.
Sale of goods act.

18. Social and societary environment of
business means all factor which affects
business socially, every business works
in a society, so society's different
factors like family, educational
institutions and religion affects
business.

19. 1. Family:- it’s a basic part of society, a
person from birth to death lives in
family so personal decisions of
buying and selling of goods are
affects from family. In some
situations parents may not allow to
use certain products. So, business
men must analyse different family
needs

20. 2. Educational institutions:- they are main part
of society. They provide good knowledge,
education, awareness. They teach whether use
of some products are good or bad. Suppose if
a student is habitual to drink tea and if his
teacher advises him that its harmful to his
health after guidance students may avoid tea
after this sale of tea may come down.

21. 3. Religion:- religion also affects
business in some or the other way.
People may avoid use of some products
due to religious beliefs

22. The political environment is
one of the less predictable
elements in an organization's
business environment.

23.  Stability of government
 International relations
 Government bureaucracy

24.  Economic environment refers to all
those economic factors, which have a
bearing on the functioning of a
business. Business depends on the
economic environment for all the
needed inputs. It also depends on the
economic environment to sell the
finished goods.

25. a) Economic system
b) Economic planning
c) Industry
d) Agriculture
e) Infrastructure
f) Financial and fiscal sectors
g) Removal of regional imbalances
h) Price and distribution controls
i) Economic reforms etc.,