Business environment is the sum total of all external and internal factors that influence a business. You should keep in mind that external factors and internal factors can influence each other and work together to affect a business. For example, a health and safety regulation is an external factor that influences the internal environment of business operations.

1. Business Environment

2. WHAT IS BUISNESS ENVIRONMENT?
Business environment is the sum total of all external and internal factors that
influence a business. You should keep in mind that external factors and internal
factors can influence each other and work together to affect a business. For
example, a health and safety regulation is an external factor that influences the
internal environment of business operations.
The term Business Environment imply as external forces, factors and institutions
that are beyond the control of the business and they affect the functioning of a
business enterprise. These include customers, competitors, suppliers,
government, and the social, political, legal and technological factors etc. While
some of these factors or forces may have direct influence over the business firm,
others may operate indirectly.

3. OBJECTTIVES-
Economic Objectives : Business is basically an economic activity.Therefore,its primary objectives
are economics in nature. The main economic objectives of business are as follows.
Earning profits
Creating customers
Innovations
Social Objectives : Business does not exist in a vacuum. It is a part of society. It cannot survive
and grow without the support of society. Business must therefore discharge social responsibilities
in addition to earning profits.
Human Objectives : Business is run by people and for people. Labour is a valuable human
element in business. Human objectives of business are concerned with the well-being of labour.
These objectives help in achieving economics and social objecting of business.
Labour welfare
Developing human resources
Participative management
Labour management cooperation

4. FACTORS EFFECTING BUISNESS
ENVIRONMENT-
External Factors : External environmental factors are events that take place
outside of the organization and are harder to predict and control.
Internal Factors : Internal environmental factors are events that take place
Inside of the organization and are easy to predict and control.

5. EXTERNAL FACTORS-
Micro(Task / Operating) Environment
Customers
Suppliers
Competitors
Publics
Financiers
Marketing Intermediaries
Macro(General/Remote) Environment
Economic
Social/Cultural
Demographic
Political/Government
Natural
Technological
Global

6. INTERNAL FACTORS-
Promoters'/Shareholders'
Mission/Objectives
Management Structure/Nature
Internal Power Relationship
Corporative Image/Brand Equity
Physical Assets/Facilities
Research, development and Technological Capabilities
Human Resources
Marketing Capabilities