The document discusses the internal and external analysis of a business environment. It defines business environment as the totality of all forces surrounding a business that impact its activities. The business environment has both internal factors, like a company's resources and capabilities, and external factors. Externally, the micro environment consists of elements like customers, competitors and suppliers that directly affect the business. The broader macro environment includes demographic, economic, government, technological and other societal forces from the larger region or country. Analyzing the internal and external environment is important for a business to identify strengths, weaknesses, opportunities and threats and adapt successfully over time.

1. B Y
S U J AYA K U M A R S
M . C O M . , N E T
External and Internal Analysis

2.  Meaning of Environment:
The term Environment has been derived from a
French word “ Environia” means “to Surround”.
Environment Means the surrounding , objects,
influence or circumstances under which someone or
something exist.
 Definition:
According to K. Davis, “ An aggregate of all conditions,
events and influences that surround and effect it”.
According to C.C.Park, “ Environment refers to sum
total of conditions which surround man at given point
in space and time”.

3.  Business means is an economic activity where goods
and services are exchanged for money.
 Business environment refers to totality of all forces
of surrounding of business and have a greater impact
on its activities.
 Characteristics of Business Environment
1) It is complex
2) It is dynamic
3) It consists of internal and external factors
4) It is multifaceted
5) It is uncertainty
6) It varies country to country
7) It is interrelated

4.  Importance of Business Environment:
 Identification of strength
 Identification of Weakness
 Identification of Opportunities
 Identification of Threats
 Exploitation of business opportunities
 Keeping business enterprise alert
 Keeping Business flexible and dynamic
 Ensures optimum utilization of resources
 Ensures survival and Growth
 Maintaining adaptability to changes

5.  Types of Business Environment:
 1) Internal Environment
 2) External Environment
a) Micro Environment
b) Macro Environment

6. 1) Internal Environment
 Vision, Mission and Objectives
 Value system
 Management structure and nature
 Internal power relationship
 Company image and brand equity
 Human resources
 Physical Assets and facilities
 R &D and Technological capabilities
 Marketing resources
 Financial Factors

7. a) Micro/Operating Environment
The micro/operating environment consists of the
organization or company’s immediate environment that
affects the performance of the organisation/company.
They are listed in below:
 Elements of micro environment
 Consumers/Customers
 Competitors
 Organization
 Publics
 Market
 Suppliers
 Intermediaries

8. b) Macro Environment elements:-
 Demographic
 Economics
 Government
 Legal
 Political
 Cultural
 Technological
 Global

9. THANK YOU…..