Business refers to an organization that provides goods or services to consumers, businesses, and governments. A business environment comprises both internal and external uncontrollable factors that influence how a business operates. The external factors include economic, social, political, legal, demographic, and technological conditions that impact decisions. Internally, the owners and employees also affect the business environment through their relationships. Understanding the business environment is crucial for companies to adapt and succeed in different regions and countries as conditions vary significantly depending on location.

1. Business
Environment
MEANING AND CONCEPTS

2. What is a Business?
 A business is a legally recognized organization
designed to provide goods or services, or both, to
consumers, businesses and governmental entities.

3. What is the meaning of the word
Business?
 The original meaning of "business" relates to
the state of being busy either as an
individual or society as a whole, doing
commercially viable and profitable work.

4.  Business: Business is a human activity carried
out by the unified efforts of different categories of
people, to produce the wealth through production
and distribution of the goods and services.

5. Definition:
 According to Malvin Anshen :
“ Business is the way by which men make their living.”
 According to Bayard O’Wheeler :
“Business is an institution organized and operated to
provide goods and services to society under the
incentive of private gain.”

6.  The term "business" has at least three usages,
depending on the scope — the singular usage to
mean a particular company or corporation, the
generalized usage to refer to a particular market
sector, such as "the music business" and compound
forms such as agribusiness, or the broadest meaning
to include all activity by the community of suppliers of
goods and services.

7. WHAT IS
BUSINESS ENVIRONMENT?
 Meaning: - The term Business Environment is
composed of two words ‘Business’ and
‘Environment’.
 In simple terms, the state in which a person remains
busy is known as Business.
 The word Business in its economic sense means
human activities like production, extraction or
purchase or sales of goods that are performed for
earning profits.

8.  On the other hand, the word ‘Environment’ refers to
the aspects of surroundings.
 Therefore, Business Environment may be defined as
a set of conditions– Social, Legal, Economical,
Political or Institutional that are uncontrollable in
nature and affects the functioning of organization.

9.  Environment: The birth, growth and continuous
development of organization are influenced by a wide
range of variables like employees, customers,
suppliers, producers, competition etc.

10.  Business Environment: Business Environment
refers to those aspects of the surroundings of
business enterprise, which affect or influence its
operations and determine its effectiveness.

11. Definition:
 According to Keith Davis: “Business environment is
the aggregate of all conditions, events and influence
that surrounds and affects it”

12.  Understanding the environment within which the
business has to operate is very important for running
a business unit successfully at any place.
 The environmental factors influence almost every
aspect of business, be it its nature, its location, the
prices of products, the distribution system, or the
personnel policies

13.  Business environment may be defined as the total
surroundings, which have a direct or indirect bearing
on the functioning of business.

14.  It may also be defined as the set of external
factors, such as economic factors, social factors,
political and legal factors, demographic factors,
technical factors etc., which are uncontrollable in
nature and affects the business decisions of a firm.
It also includes the internal factors of the business
i.e. owners , employees and their relationship with
each other which can be controlled to some extent.

15. Concepts:
 Business environment is the sum total of all factors
external to the business firm and that greatly
influence their functioning.
 It covers External factors and forces like
customers, competitors, suppliers, government,
and the social, cultural, political, technological and
legal conditions.

16.  It also includes the internal factors of the business i.e.
owners , employees and their relationship with each
other .
 Business Environment differs from place to place, region
to region and country to country.
 Political conditions in India differ from those in
Pakistan.
 Regional factor i.e. Taste and values cherished by
people in India and China vary considerably.

17. Thank You!