ppt

1. Business environment is a macro
framework within which a business
enterprise – a macro unit – operates. The
influence of external factors constitute
business environment. Business
environment refers to all forces-economic,
social, political, technological etc and
institutions like suppliers, consumers,
competitors, financiers, government etc.
which are external to business.

2. Business Environment is
the aggregate of all
conditions, events and
influences that surround and
affect it.
- Keith
Davis

3. 1) Economic environment
2) Non-economic
environment

4. Economic environment
consists of factors like
industrial policy, monetary
policy, fiscal policy, nature of
economic system, pace of
economic development etc.

5. Non-economic
environment refers to social,
cultural, political, legal,
technological factors etc.

6. Forces external to business.
Beyond control of business.
Differs from place to place.
Creates uncertainty for the business.
Provides opportunities to the business.