Business environment

1. Presented to : Dr.Tabassum
By
Vanshika Gupta
Course – MBA 2.1

2. Business environment is the sum total of all
external and internal factors that influence a
business.
Business environment refers to “the total of all
things external to firms and industries which affect
their organisation and operation.

3.  Complex
 Dynamic
 Uncertain
 Interdependence
 Relativity
 Social Responsibility Approach

4.  It Helps in Identifying Opportunities and Making First Mover Advantage
 It Helps the Firm Identify Threats and Early Warning Signals
 It Helps in Assisting in Planning and Policy Formulation
 It Helps in Coping With Rapid Changes
 It Helps in Improving Performance

5. Business environment
Micro
Environment
Macro
Environment

6.  Micro environment is defined as the nearby environment, under
which the firm operates. Here are some factors that affect micro
Environment of Business :
 Customers
 Suppliers
 Competitors
 Investors
 Employees
 Public

7.  Macro environment refers to the general environment, that can
affect the working of all business enterprises. Here are some factors
that affect macro Environment of Business :
 Political factors
 Economical factors
 Social factors
 Technological factors
 Environment factors
 Legal factors

8. For the smooth functioning and operation of the
business we will have to mainly focus on the Micro
and Macro factors that affects our business
organisation.

9. Thank you