Business Environment its benefits and types and what are the drawbacks of this business environment. Why it is important for our business.

1. BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT

2. What is Business ?
What is Business ?
It is a continuous production and distribution
of goods and services with the aim of earning
profits under uncertain market conditions.
Objectives Of Business
Objectives Of Business
Profit
Growth
Customer Satisfaction
Employee Satisfaction
Market Leadership
1.
2.
3.
4.
5.

3. BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
Business Environment consists of individuals,
institutions and other forces which are outside
the control of business but that potentially affect
is performance.
TYPES OF BUSINESS ENVIRONMENT
TYPES OF BUSINESS ENVIRONMENT
Internal Environment
External Environment

4. INTERNAL ENVIRONMENT
INTERNAL ENVIRONMENT
The factors which can be controlled by company
TYPES OF INTERNAL ENVIRONMENT
TYPES OF INTERNAL ENVIRONMENT
Value System
Mission And Objectives
Human Resources
Internal Power Relationship
Company Image And Brand Equity

5. EXTERNAL
EXTERNAL ENVIRONMENT
ENVIRONMENT
Those factors which are beyond the control of business
enterprise are included in external environment.
TYPES Of External Environment
TYPES Of External Environment
External Environment is divided into two parts :-
Micro Economics which is close to business and
affects its capacity to work.
Macro Economics include factors that create
opportunities and threats to business units.
1.
2.

6. Identify opportunities and give first mover
advantage
Identify threats and give warning signals.
Tap useful resources
Cope with rapid changes
Improves Performance
IMPORTANCE
IMPORTANCE

7. Totality of External Forces
Specific and General Forces
Inter Related
Dynamic Nature
Uncertain
Relative
Complex
CHARACTERISTICS
CHARACTERISTICS

8. Increasing Competition
More demanding customers
Necessity for change
Market Orientation
Need for developing human resource
IMPACT Of GOVT. POLICY CHANGES
IMPACT Of GOVT. POLICY CHANGES