The document provides an overview of business environment, its nature, components, dynamics and importance. It discusses the internal and external factors affecting a business. The external environment includes micro factors like suppliers, customers, competitors and macro factors like economic, political, social, technological, demographic and international elements. It also outlines the risks faced from the business environment and various measures to manage such risks.

1. Business Environment

2. Nature, Components, Dynamics & Importance of Business Environment.

3. “ Business is an economic activity because it includes all those activities whose purpose is to earn profit by transfer of goods & services.”

4. “ Environment consists atoms & molecules agglomeration of things in motion, alive of men emotions, or force & resistances. There numbers are infinite & they are always present; they are always changing. -Chester Bernard “ Business, Like weather is with us everyday.” -Wheeler “ Business may be defined as human activity directed towards producing or acquiring wealth through buying or selling of goods. -C.H.Haney

6. Business Environment

7. Components of Business Environment

8. “ The process by which strategist monitors the economic, legal, governmental, market, competitive supplier, technological, geographic & social setting to determine opportunities & threats of their firm.” -William F Gluicck

9. Business Decisions Internal Environment External Environment

10. INTERNAL BUSINESS ENVIRONMENT ATTITUDES INTERNAL POWER RELATIONSHIP MISSION & OBJECTIVE VALUE SYSTEM MANAGEMENT STRUCTURE & NATURE HUMAN RESOURCE COMPANY IMAGE & BRAND EQUITY OTHER FACTORS

12. External Environment

13. Micro Environment “ Micro or task environment is more specific and immediate environment in which an organization conducts its business.” -Dunham & Pierce

22. Political Environment

28. Dynamics of Business Environment

32. Importance of Business Environment

34. COUNTRY RISK & POLITICAL RISK BUSINESS ENVIRONMENT

47. BALANCE OF PAYMENTS

50. Balance of payments Visible Invisible Capital Transfers

56. FOREIGN DIRECT INVESTMENT

67. INDUSTRIAL POLICY BUSINESS ENVIRONMENT

112. TYPES OF ECONOMIC REFORMS TYPES OF ECONOMIC REFORMS LIBERALISATION PRIVATISATION GLOBALISATION

128. FINANCIAL ENVIRONMENT