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 ByNaga 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 EnvironmentBusiness 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 innovationGlobalizationGrowth of povertyCollapse of emerging marketsShift from manufacturing jobs to service jobsNew methods of manufacturing

5. Internal Business EnvironmentInternal 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 anorganization 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 –EnvironmentConsumers – needs , purchasing power and behaviorSuppliersMarket intermediariesCompetitors

9. Micro environment of business.SuppliersSupply raw materials and other components (Inputs)ImportanceReliable supply – continuous supply for smooth functioningCUSTOMERSDifferent categories of customersIndustrial customersWholesale customersRetail customersGovernment customersForeign customers

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

11. 4. Competitors:The Threat of entry of new firms

12. The Power of Buyers

13. The Power of Suppliers

14. The Power of Substitutes

15. The Intensity of Rivalry among existing firmsMACRO ENVIRONMENT

16. Macro Environment are major external anduncontrollable factors that influence anorganization's decision making, and affect itsperformance and strategies.

17. These factors include :-Sociological FactorsPolitical FactorsLegal FactorsEducational FactorsTechnological FactorsEconomical FactorsNatural FactorsHistorical 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, Governmentadministration, Philosophy of the political parties are some of political factor whichaffects 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 FACTORSEducational cum cultural environment affects business activities and managerial skills.These factors include literacy, attitude toward training and skill required for a businesslike specialized, vocational and technical training

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

21. NATURAL & ECOLOGICAL FACTORS Use of modern technology sometimes involves huge social cost in term ofDeterioration of environmental pollution and ecological balance. So businessenvironment should also consider about natural resources, weather & climaticconditions, health hazards etc.HISTORICAL FACTORS Business Environment is also affected by historical factors. Business environment in anumber of newly independent countries has been determined by their past colonialstatus.

22. The Determinants of Business PerformanceStructure  conduct  performancerelationship between business structure and business conduct (behaviour)competitive markets and competitive behaviourlimited competition and collusionrelationship between business conduct and business performancedifferent indicators for measuring performanceprofitability, market share, growth, etc.