This video covers the topic: (a)Business environment, concept of business environment (b)Characteristics of business environment For video format of this presentation: https://www.youtube.com/watch?v=xty0KX3Ekl4&feature=youtu.be The presentation is for education purpose only.

1. PREPARED BY:VIJAY DEWANI
CLASS :P.G.D.M 2ND SEM.
BUSINESS ENVIRONMENT

2. CONCEPT OF ENVIRONMENT
• THE ENVIRONMENT OF ANY ORGANISATION IS
“THE AGGREGATE OF ALL CONDITIONS ,
EVENTS AND INFLUENCES THAT SURROUNDS
AND AFFECT IT”.
• THE BUSINESS ENVIRONMENT CONSISTS OF
INTERNAL AND EXTERNAL FACTORS THAT MAY
INFLUENCE THE NATURE AND SCOPE OF
BUSINESS ACTIVITIES.

3. CONCEPT OF ENVIRONMENT
• DEFINITIONS OF BUSINESS ENVIRONMENT:
BUSINESS ENVIRONMENT CONSISTS OF ALL
EXTERNAL AND INTERNAL FACTORS THAT
INFLUENCE THE COMPLEX INTERACTION OF
MARKET , PRODUCTION AND FINANCE – THE
3 BASIC COMPONENTS OF THE BUSINESS
WORLD” - J.A. KRITZ & C.T. DUGGAN

4. CONCEPT OF ENVIRONMNET
THE ENVIRONMENT INCLUDES FACTORS
OUTSIDE THE FIRM WHICH CAN LEAD TO
OPPURTINITIES FOR AND THREATS TO THE
FIRM.ALTHOUGH , THERE ARE MANY FACTORS
, THE MOST IMPORTANT OF THESE FACTORS
ARE SOCIO-ECONOMIC, TECHNOLOGICAL,
SUPPLIERS, COMPETITORS & GOVERNMENT”
- W.F GLUECK & L.R. JOUCHO

5. CHARACTERSTICS OF BUSINESS
ENVIRONMENT
BUSINESS ENVIRONMENT
IS EXTERNAL.
IT IS COMPLEX IN
NATURE.
IT IS MULTI
DIMENSIONAL.
IT IS EVER CHANGING.
IT MAY BE FAVOURABLE
OR UNFAVOURABLE.
IT DEMANDS A HIGH
DEGREE OF ADAPTABILITY.

6. BUSINESS ENVIRONMENT
CONSTITUENTS

7. CONSTITUENTS OF BUSINESS
ENVIRONMENT
BUSINESS
ENVIRONMENT
EXTERNAL
ENVIRONMENT
INTERNAL
ENVIRONMENT

8. CONSTITUENTS OF BUSINESS
ENVIRONMENT
• BUSINESS ENVIRONMENT CONSISTS OF TWO
SETS OF FACTORS:
a) INTERNAL FACTORS.
b) EXTERNAL FACTORS.
• EXTERNAL ENVIRONMENT IS FURTHER
CLASSIFIED AS:
A. MICRO EXTERNAL ENVIRONMENT
B. MACRO EXTERNAL ENVIRONMENT

9. INTERNAL FACTORS
• INTERNAL FACTORS: THE INTERNAL FACTORS
CONSIST OF FORCES OPERATING WITHIN THE
ORGANISATION SUCH AS QUALITY AND
QUANTITY OF MANPOWER ,
ORGANISATIONAL STRUCTURE ETC. THE FIRM
HAS CONTROL OVER THESE FACTORS.

10. INTERNAL FACTORS
VALUE SYSTEM
VISION , MISSION AND OBJECTIVES.
ORGANISATION STRUCTURE.
ORGANISATION RESOURCES.
COMPANY IMAGE AND BRAND EQUITY.

11. EXTERNAL ENVIRONMENT
EXTERNAL
ENVIRONMENT
EXTERNAL
MACRO
ENVIRONMENT
EXTERNAL
MICRO
ENVIRONMENT

12. EXTERNAL MICRO ENVIRONMENT
• EXTERNAL MICRO ENVIRONMENT:MICRO
ENVIRONMENT IS ALSO KNOWN AS THE TASK
ENVIRONMENT OR OPERATING ENVIRONMENT.
1. FIRM
2. SUPPLIERS
3. DISTRIBUTORS
4. CUSTOMERS
5. COMPETITORS
6. PUBLIC

13. EXTERNAL MACRO ENVIRONMENT
• THE MACRO ENVIRONMENT IS ALSO KNOWN AS
GENERAL ENVIRONMENT OR REMOTE
ENVIRONMENT.
1. PHYSICAL ENVIRONMENT.
2. DEMOGRAPHIC ENVIRONMENT.
3. ECONOMIC ENVIRONMENT.
4. POLITICAL ENVIRONMENT.
5. SOCIAL AND CULTURAL ENVIRONMENT.
6. TECHNOLOGICAL ENVIRONMENT.
7. INTERNATIONAL ENVIRONMENT.

14. S.W.O.T ANALYSIS