Business Environment under Strategic Management for M.com 4th sem students by Dr. Anita Pandey.

1. PREPARED BY:-
Dr. Anita Pandey
HOD, Commerce Department
SHRI SHANKARACHARYA
MAHAVIDYALAYA
STRATEGIC
MANAGEMENT
UNIT-1
BUSINESS
ENVIRONMENT

2. MEANING AND DEFENITION OF
BUSINESS ENVIRONMENT
Business environment includes all of the internal and
external factors that effect the business functions, it’s
employees, customers, management, supply, demand
and business regulations.
In other words we can say that business environment
is the collection of all factors like employees,
customers, customers needs and expectations, supply
and demand, management, suppliers, owners,
government rules, changes in technology, social and
market trends, economic changes etc. These factors
affect the functions of a business organization and
how an organization works.

3. FRAMEWORK TO UNDERSTAND THE
ENVIRONMENTAL INFLUENCES
 Useful to take an initial view of organization’s environment
 The auditing of environmental influences
 To focus more towards an explicit consideration of immediate
environment of the organization
Example: Competitive arena in which the organization operates.
In competitive environment we study about force analysis that aims to
identify the key force at work.

4. CHARECTERISTICS OF BUSINESS
ENVIRONMENT
 Environment is complex
 Environment is dynamic
 Environment has a far-reaching impact
 Environment is multi-phased
 Environment is micro and macro

7. Reference:
Strategic Management Module for IPCC of
ICAI