2. ““Business is an economic activity because itBusiness is an economic activity because it
includes all those activities whose purpose isincludes all those activities whose purpose is
to earn profit by transfer of goods &to earn profit by transfer of goods &
services.”services.”
3. “Environment consists atoms & molecules
agglomeration of things in motion, alive of men
emotions, or force & resistances. There numbers are
infinite & they are always present; they are always
changing.
-Chester Bernard
“Business, Like weather is with us everyday.”
-Wheeler
“Business may be defined as human activity
directed towards producing or acquiring wealth
through buying or selling of goods.
-C.H.Haney
4. NatureNature
1. Interdependence
2. Dynamic
3. Unlimited effect of uncontrollable factors.
4. Media & Social Change
5. Uncertainties & Restrictions.
6. Adverse conditions
7. To keep regular vigil on the changing
environment.
8. Danger of casual change
5. Business EnvironmentBusiness Environment
S t r e n g t h s W e a k n e s s
I n t e r n a l E n v i r o n m e n t
O p p o r t u n i t i e s T h r e a t s
E x t e r n a l E n v i r o n m e n t
B u s i n e s s E n v i r o n m e n t
7. ““The process by which strategist monitors theThe process by which strategist monitors the
economic, legal, governmental, market,economic, legal, governmental, market,
competitive supplier, technological, geographic &competitive supplier, technological, geographic &
social setting to determine opportunities &social setting to determine opportunities &
threats of their firm.”threats of their firm.”
-William F Gluicck
12. Micro EnvironmentMicro Environment
“Micro or task environment is more specific and
immediate environment in which an organization
conducts its business.”
-Dunham & Pierce
18. • MACRO ENVIRONMENT means general
environment of business. Macro factors are
uncontrollable in comparison to the micro forces
of environment. The growth and survival of
business depend upon its adaptability to macro
environment factor which include
20. 2. POLITICAL ENVIRONMENT2. POLITICAL ENVIRONMENT
Political Ideology of Govt.
Political stability in the Economy.
Foreign Policy of Govt.
Defense & Military Policy.
Centre state relationship.
21. Political EnvironmentPolitical Environment
L e g i s l a t u r e
E x e c u t i v e
J u d i c i a r y
P o l i t i c a l S y s t e m
P r e a m b l e
F u n d a m e n t a l R i g h t s
D i r e c t i v e s
P r i n c i p l e s o f S t a t e P o l i c y
C o n s t i t u t io n
E n v i r o n m e n t
P o l i t c a l E n v i r o n m e n t
22. 3. Socio-Cultural Environment3. Socio-Cultural Environment
Urbanization
Religion
Tastes & Preferences
Customs & Tradition in Society
Health & Quality of Life
Language
23. 4. Technological Environment4. Technological Environment
Innovation
Research & Development
Inflow of foreign Technology etc.
24. 5. Natural Environment5. Natural Environment
Climatic & weather condition.
Availability of Natural resources.
Topographical factors: Physical features of
place.
Pollution Control
32. For incorporating dynamic behavior of environment
Complete knowledge of internal environment
To understand international events, pressures&
impact
Economic policies of the govt.
To face business problems &challenges
Vigilant regarding dangers
Administrative system
Optimum utilization of resources
Market conditions
Scientific & industrial advancement
Development & success of business
39. KEY INDICATORS are the most
valuable variables which reflect the
overall state of economy.
They are of two types i.e.
microeconomics and
macroeconomics
40. The major key indicators areThe major key indicators are
1. GROSS DOMESTIC PRODUCT
2. SECTORAL DISTRIBUTION
3. AGRICULTURAL DISTRIBUTIONS
4. ELECTRICITY GENERATION
5. ECONOMIC INFRASTRUCTURE
6. MONEY SUPPLY
41. The major key indicatorsThe major key indicators
7. RATE OF INFLATION
8. FOREIGN TRADE
9. FOREIGN EXCHANGE
RESERVES
10. EXCHANGE RATE
11. SOCIAL INDICATORS
42. GDPGDP
GDP is generally defined as
the market value of the
goods and services
produced by a country in a
given period of time
43. SECTORAL DISTRIBUTIONSECTORAL DISTRIBUTION
It means the different components or sectors of GDP from which it is
calculated.
Such as :- A. AGRICULTURE SECTOR
B. INDUSTRIAL SECTOR
C. SERVICES SECTOR
(A+B+C) = GDP