The document discusses business environment and its various components that affect business performance. It defines business environment as the sum of all external forces outside a business's control that influence its operations. It then outlines the key features of business environment and describes the different factors that comprise the economic, social, technological, political, and legal environments. The document also provides details about India's economic reforms in 1991 that liberalized, privatized, and globalized the economy as well as the impact of government policies like demonetization on businesses and industries in India.

1. Business
Environment
SANGEETA MAM RAJVEER SIR
Name: EERAM
Class: 12
HIMANSHU SIR

2. Business Environment
It is the sum total of all individuals, institution and other forces that
are outside the control of business enterprise but affects the
performance of the business.
Meaning:

3. Features of Business Environment
• Totality of external forces
• Dynamic Nature
• Complexity
• Uncertainty
• Specific and general forces

5. Economic
Environment
Social
Environment
Technological
Environment
Political
Environment
Legal
Environment Factors of
Business
Environment

6. Economic Environment
GDP
Inflation
Tax Rates
Demonetization
Import & Export

7. Social Environment
Social trends
Customer & Tradition
Human development
Education
Society development

8. Technological Environment
Innovation
Artificial Intelligence
Digital marketing
Internet connectivity
Change in
Technology

9. Political Environment
Political system
Corruption
Peace of country
Rules and Regulation

10. Legal Environment
Act
Law
Judgment
Amendment

11. Economic Environment in India
Till 1991 India followed an economic policy with a
socialist basis.
The policy was based on the primacy of public sector and
control and regulations on private sector

12. New Industrial Policy 1991

13. Liberalization
 Liberating the economy from the regulations and
restrictions on economic growth.
 The new policy of liberalization through de-licensing and de-controls
frees the economy from restrictions.

14. Privatization
 It refers to greater role to private sector and decreasing the role of
public sector.
 Its means allowing the private sector to come foreword for establishing
more Industries in private sector.

15. Globalization
 Globalization means free movement of goods, capital and labour across the
globe.
 Its means linking the economy of a country and free trade and free mobility
capital and labour etc.

16. Impact of changes in government policy on
business and industry

17. Demonetization
 Govt. of India made an announcement on Nov 8, 2016 that the two largest
denomination notes Rs.500 and Rs.1000 were demonetized.
 The aim of demonetization was to curb corruption, fake notes, use of
currency for illegal activities like terrorism, accumulation of black money
generated by income that has not been declared to the tax authorities.

18. Aims and Features of Demonetization