The document discusses the business environment and its internal and external factors. It defines business as an economic activity undertaken to make a profit through the production or exchange of goods and services. The business environment consists of conditions that affect business decisions and is made up of an internal and external environment. The internal environment includes factors within a business's control, while the external environment provides opportunities and threats outside its control, including the micro environment of direct influences and macro environment that indirectly affects operations.

1. Manish Sharma
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Business
Environment

2. Meaning of Business
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It is an economic activity undertaken in a systematic manner
with the intention of making profit which involves risk and it
results in the production or exchange of goods or services.

3. Business Environment
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Business environment includes set of conditions or situation
that affect business activities or decision making.
These conditions are broadly classified into internal
environment and external environment.

4. Internal Environment
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• Internal environment consists of factors which are within the
control of the organization.
• Business ethics, Objective of the firm, Value system,
Management structure, Physical assets, Technological
resources, Financial resources, Stakeholders, Human
resources etc. are part of the internal environment of
business.

5. External Environment
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External environment include factors which are outside the
control of the business organization but it provide
opportunities or pose threats.
External environment is further classified into two categories
micro environment and macro environment.

6. Micro Environment
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Micro environment include factors which have a direct
impact on the functioning of the organization.
Micro environment consist of general public, competitors,
customers, suppliers, trade union, marketing intermediaries
(distributors, dealers, retailers) etc.

7. Macro Environment
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Macro environment provides the business firms a framework
within which they have to operate and adapt themselves. It
indirectly affect any business firm’s operation and working
condition.
Macro environment can be categorized into economic
environment and non-economic environment.