This document discusses the business environment and factors that influence it. It can be summarized in 3 sentences: The business environment includes external factors like the political, economic, social and technological landscape that are outside a business's control, as well as internal factors like personnel, finance and operations that a business can influence. The micro environment comprises suppliers, customers, competitors and other organizations a business interacts with. Macro environmental factors such as sociological, technological and economic conditions also shape the broader business climate.

1. BUSINESS ENVIRONMENT ` Presented By Naga S Sridhar N (A-34) Venkatesh Ravada (A-17) Neha Sharma (A-39) Kapil Sharma (A-20) Abhishek Verma (A-42) Sandeep Dasmanthrao (A-19)

2. Business Environment Business Environment is a direct relationship between successful management and the influence and impact of environmental change.

3. 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.

4. Factors influencing the business environment : Technological innovation Globalization Growth of poverty Collapse of emerging markets Shift from manufacturing jobs to service jobs New methods of manufacturing

5. 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.

6. MICRO 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 –Environment Consumers – needs , purchasing power and behavior Suppliers Market intermediaries Competitors

10. Market intermediaries Middlemen. Physical distribution Firms: (warehouses and transport firms) Marketing service agencies (Advertising agencies market research firms, media firms, consulting firms) Financial intermediaries

12. The Power of Buyers

13. The Power of Suppliers

14. The Power of Substitutes

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

17. These factors include :- Sociological Factors Political Factors Legal Factors Educational Factors Technological Factors Economical Factors Natural Factors Historical Factors

18. 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. 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

19. 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

20. TECHNOLOGICAL FACTORS Technology is about application of tools, methods and techniques to improve production and processes. Technology is life for growth and competitiveness of Business. ECONOMICAL ENVIRONMENT Economic environment conditions such as business cycle, unemployment, Inflation, monitory policies, Industrial policies, trade policies etc also affects the business environment.

21. 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. HISTORICAL FACTORS Business Environment is also affected by historical factors. Business environment in a number of newly independent countries has been determined by their past colonial status.

22. The Determinants of Business Performance Structure  conduct  performance relationship between business structure and business conduct (behaviour) competitive markets and competitive behaviour limited competition and collusion relationship between business conduct and business performance different indicators for measuring performance profitability, market share, growth, etc.

23. Internal aims and organisation profit maximisation as the prime goal distinction between owners and managers importance of managers’ own objectives

24. Other factors affecting performance internal structure information competence of management quality of the workforce