Commerce ISC Business environment Notes presentation Salient features Dimensions

1. Chapter 1
Business Environment
• CONCEPT OF BUSINESS ENVIRONMENT
• SALIENT FEATURES OF BUSINESS ENVIRONMENT
• DIMENSIONS OF BUSINESS ENVIRONMENT

2. Business Environment
• The term business environment' refers to the sum total of all
individuals, institutions and other forces that lie outside a
business enterprise but that may influence its functioning and
performance.
• Business environment is the aggregate of all conditions events
and influences that surround and effect the business
organization.
- Keith Davis

3. Salient Features of business environment
Multi-faceted
Dynamic
Inter-
relatedness Diversity
Far-reaching
impact
Relativity
Uncertainty Complex

4. Dimensions
Business
Environment
Micro
Environment
Internal
Corporate
Culture
Mission and
Objectives
Top
Management
Power Structure
Corporate Image
Company
Resources
External
Customers
Competitors
Suppliers
Middlemen
Financiers
Publics
Macro
Environment
Political
forces
Economic
forces
Social forces
Technological
forces
Legal Forces