This document discusses business environment. It defines business environment as consisting of all external factors that influence a business, such as strengths, weaknesses, government policies, etc. It notes that the business environment is total, dynamic, uncertain, and contains both specific and general forces. The environment can be classified as internal (controllable) or external (uncontrollable). Internal factors include values, mission, management, resources, and brand. External factors include the microenvironment (suppliers, customers, competitors) and macroenvironment (economic, technological, political factors). Environmental scanning monitors and analyzes these factors. A business can analyze its environment through SWOT analysis and consider opportunities and threats.

1. (MACROECONOMICS)
SUBMITTED BY:
SUBMITTED TO:
AMAN THAKUR
Dr. RENUKA
DIVYA SINGH
SHARMA
EKTA
KANIKA BANSAL
MUSTAFA

2. What is business Environment?
 Business environment consists of all those factors that
have a bearing on the business such as the strengths,
weaknesses, internal power relationships and
orientations of the organization, government policies
etc….

3. Features of Business Environment
 Totality of the external forces
 Dynamic nature
 Uncertainty
 Specific and general forces

4. Types of environment
 On the basis of the extent of intimacy with the firm,
the environmental factors may be classified in to
different types of levels:
 Internal factors: controllable and direct impact on
business
 External factors: unctrollable and indirect impact on
business

5. Internal Environment
 Important Internal factors are:
 Value system
 Mission and Objectives
 Management structure and nature
 Internal Power Relationship
 Human Resources
 Company Image
 Brand Equity

6. Types of External Environment
 Micro-environment
 Macro-environment

7. Micro-environment
 Micro environment is also known as task environment
and operating environment because the micro
environmental forces have a direct bearing on the
operations of the firm:
 Suppliers
 Financers
 Customer
 Marketing Intermediaries
 Public
 Competitors

8. Macro-environment
 Macro environment is also known as general
environment and remote environment. Macro factors
are generally more uncontrollable than micro
environment factors.
 When the macro factors become uncontrollable, the
success of company depends upon its adaptability to
the environment.

9. The External
Environment

10. Environment Scanning
 Environmental Scanning is the monitoring, evaluating
and disseminating of information from the external
and internal environment to key people within the
corporation

11. Techniques for Environmental
Scanning
 Verbal and written information
 Search and Scanning
 Spying
 Forecasting
 Five force analysis

12. ANALYSIS OF THE BUSINESS
ENVIRONMENT
 SWOTs analysis
 Environmental conditions may be favourable or unfavourable:
 Opportunity
Represents favourable (positive) conditions in
micro, market, macro environments
Advantageous to firm
• Threat
Represents unfavourable (negative) conditions in
micro, market, macro environments
Detrimental to firm
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13.  Thank You