Buisness Environment internal & external types and its types examples

1. ANUJ SINGH
13BBAH022

2. The combination of internal and external
factors that influence a company's operating situatio
n.

4. Internal Business Environment
Internal Business Environment is the set of
elements or forces which affects a organization's
or firm’s behaviour. Examples are like personnel,
finance, marketing, production, operational
research and so on.

5. External business environment
External Business environment is a set of
political, economic, social and technological
(PEST) forces that are largely outside the control
and influence of a business, and that can
potentially have both a positive and a negative
impact on the business.

6. Macro
Environment
Micro
Environment
External
Environment

7. Micro environment is the environment that
an organization can influence. It may not be able
to Correct all flaws in the microenvironment, but
it has a much better control over the macro
environment.

8. 
Factors Influencing Micro
i) Environment Consumers – needs ,
purchasing power and behaviour
ii) Suppliers
iii) Market intermediaries
iv) Competitors

9. • Suppliers Supply raw materials and other components (Inputs)
maintains continuous supply for smooth functioning.
• Market intermediaries Middlemen Physical distribution Firms:
(warehouses and transport firms)Marketing service agencies
(Advertising agencies market research firms, media firms,
consulting firms)Financial intermediaries.
• Competitors:
i. The Threat of entry of new firms
ii. The Power of Buyers
iii. The Power of Suppliers
iv. The Power of Substitutes
v. The Intensity of Rivalry among existing firms

10. Macro Environment are major external and
uncontrollable factors that influence an
organization's decision making, and affect its
performance and strategies.

11. These factors include
 SOCIOLOGICAL FACTORS
It concerns with society as a whole; it covers health, media,
education, minorities, women, organized labour , legal system
and demographics. The biggest challenge to firms is the
society's changing demands.
 NATURAL & ECOLOGICAL FACTORS
Use of modern technology sometimes involves huge social cost
in term of Deterioration of environmental pollution and
ecological balance. So business environment should also
consider about natural resources, weather & climatic
conditions, health hazards etc.

12.  POLITICAL FACTORS
Political environment gives shape to business. Political stability,
Government administration, Philosophy of the political parties are
some of political factor which affects the business environment.
 LEGAL FACTORS
Legal Environment has a permanent and lasting impact in shaping
business .Labour law act, Industrial dispute act, Minimum wages act,
Law of contract, Import & Export control act and tax law act are few
legal factors.
 EDUCATIONAL FACTORS
Educational cum cultural environment affects business activities and
managerial skills. These factors include literacy, attitude toward
training and skill required for a business like specialized, vocational and
technical training

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