This presentation is concerned with the business environment which is very dynamic in nature. It tells the factors which directly or/and indirectly influence a business concern.I Hope it will do for you Thanks

1. UNIT-01
BUSINESS
ENVIRONMENT
Jaswant Sen (M.Com.)
92-7879-4057

2. What is business
environment…?
•The total surroundings which have
a direct or indirect bearing on the
business activities.

3. Why do we Study Business
Environment..?
•The environment in which a business operates
is full of opportunities as well as threats.
•An organization formulates its strategies in such
a way that it is able to capitalize on the
available opportunities and protect itself from
the threats which the environment may e
posing.

4. Business
environment
Internal
Environment
External
Environment
Micro
Environment
Macro
Environment

5. Internal
Environment External
Environment

6. Internal Environment
Controllable
• The value system, ethical standards
• Mission and objectives
• Culture
• Organizational structure
• Physical assets and facilities(technology, production capacity)
• Financial position, composition of funds, capital structure, financial
policies
• Determine strength and weakness which a company has

7. External Environment
(uncontrollable)
Micro
• Customer
• competitors
• Marketing intermediaries
• Workers and unions
• Publics
Macro
• Economic
• Political and Legal
• Socio-cultural
• Demographic
• Technological
• International
• Natural

8. Why do we study Business Environment….?
•A proper understanding of business
environment helps an organization to
use its sources more effectively and
adapt itself to its dynamism in a better
way.

9. Significance of Business Environment
•Dynamic in nature
•Complex
•Multifaceted
•Far reaching impact

10. Importance of Business
Environment
• Continuous environment scanning helps in visualizing the impact of the socio-
economic and political-legal changes at the national and international levels on its
business and take timely corrective steps.
• It helps in identifying the opportunities for and threats to, the business.
• It helps in identifying firm’s strength and weaknesses in view of the technological
and global developments.
• It helps in evaluation the present strategies, formulating long-term policies, and
developing future strategies.
• It enables the firm to analyse competitors’ strategies and formulate the necessary
counter strategies.
• Lastly, it helps the firm to adapt to the prevailing conditions and, sometimes even
influence the environment in order to make it congenial (friendly) to the business.

11. Thank
You..