The business environment refers to all internal and external factors that influence a business. It is complex, dynamic, uncertain, and features interdependence between factors. Understanding the business environment helps companies identify opportunities and threats, assist in planning, and improve performance. The micro environment consists of nearby factors like customers, suppliers, and competitors, while the macro environment includes broader factors like political, economic, social, technological, environmental, and legal conditions. Analyzing both the micro and macro environment is important for businesses to effectively operate.

1. Presented to : Dr.Tabassum
By
Vanshika Gupta
Course – MBA 2.1

2. Business environment is the sum total of all
external and internal factors that influence a
business.
Business environment refers to “the total of all
things external to firms and industries which affect
their organisation and operation.

3.  Complex
 Dynamic
 Uncertain
 Interdependence
 Relativity
 Social Responsibility Approach

4.  It Helps in Identifying Opportunities and Making First Mover Advantage
 It Helps the Firm Identify Threats and Early Warning Signals
 It Helps in Assisting in Planning and Policy Formulation
 It Helps in Coping With Rapid Changes
 It Helps in Improving Performance

5. Business environment
Micro
Environment
Macro
Environment

6.  Micro environment is defined as the nearby environment, under
which the firm operates. Here are some factors that affect micro
Environment of Business :
 Customers
 Suppliers
 Competitors
 Investors
 Employees
 Public

7.  Macro environment refers to the general environment, that can
affect the working of all business enterprises. Here are some factors
that affect macro Environment of Business :
 Political factors
 Economical factors
 Social factors
 Technological factors
 Environment factors
 Legal factors

8. For the smooth functioning and operation of the
business we will have to mainly focus on the Micro
and Macro factors that affects our business
organisation.

9. Thank you