The document discusses business environment and its factors. It defines business, environment, and business environment. It explains that business environment refers to external forces influencing business decisions, including social, political, economic, and technological factors outside a business's control. The document outlines various internal and external environmental factors that affect a business, categorizing external factors as micro (e.g. customers, suppliers) and macro (e.g. political, economic, social). It concludes that environmental factors significantly impact businesses and must be considered when analyzing changes to implement.

1. M.P. INSTITUTE OF MANAGEMENT & COMPUTER APPLICATION MBA- 1ST YEAR ( 2ND SEM.) DATE: 5TH MARCH 2011

2. Environmental Factors & Business Presented By: Archana Priya Nimisha Khatri Sonam Verma

3. Contents What is business? What is environment? What is business environment? Its Environmental Factors Conclusion

4. What is Business? A business is an organization that provides goods and services to others who want or need them with a profit motive. It may also be understood as an organized effort of enterprises to supply consumers with goods and services. The main purpose of any business is to earn profit.

5. What is Environment? Environment refers to the surroundings of an object. It also refers to the surroundings of a physical system that may interact with the system by exchanging mass, energy, or other Properties.

6. What is Business Environment? The environment of a business means the external forces influencing the business decisions. These can be social, political, economic or technological factors and these are outside the control of the business.

7. Environmental Factors An identifiable element in the physical, cultural, demographic, economic, political, regulatory, or technological environment that affects the survival, operations, and growth of an organization or business. Internal factors Environmental Factors External Factors Micro Macro

8. Understanding Environment Scanning the environmental factors Politico- Legal Economic Demographic Socio- Cultural Technological Natural MICRO ENVIRONMENTAL FACTORS Suppliers Employees Customer MACRO ENVIRONMENTAL FACTORS Shareholders INTERNAL FACTORS Value System Mission & Vision Competitors

9. Internal Factors Mission and Vision Value system Management structure Internal power relations Human resource Financial factors Research & Development

10. External factors The external environmental factors are of two Types: Micro Factors Macro Factors

11. Micro Factors Customers Employees Suppliers Shareholders Competitors

12. Macro Factors Political-Legal Economic Social Technological Cultural Natural Demographic Global

13. Conclusion The environmental factors have an important impact on the business. These factors affects a business a lot. The environmental factors are never stable and can change quickly. These factors also help in analyzing the changes and implementing them in the business.

14. India’s progress in 62 years is a matter of legitimate pride……..