these slides will help you in knowing that how different factors affect the business environment what is business environment and all. this will help you to enhance your knowledge more. and it describes all the factors clearly and in a very simple language

2. SUBMITTED TO: SUBMITTED BY:
Mr. GAURAV SHREEKANT MEHUL CHOPRA(24)
GOURAV GUPTA (18)
AMITANSHU GUPTA(30)
NISHKARSH KAUSHIK (38)
SAKSHAM AGARWAL (51)

4. Business environment is the
sum total of all external and
internal factors that influence
a business. You should keep in
mind that external factors and
internal factors can influence
each other and work together
to affect a business.

5.  Business Environment is a direct relationship
between successful management and the
influence and impact of environmental change.

6. External business environment:
 External Business environment is a set of political,
economic, social and technological (PEST) forces
that are largely outside the control and influence of a
business, and that can potentially have both a positive
and a negative impact on the business.

7.  Technological innovation
 Globalization
 Growth of poverty
 Collapse of emerging markets
 Shift from manufacturing jobs to service jobs
 New methods of manufacturing

8.  Internal Business Environment is the set of
elements or forces which affects a
organization's or firm’s behaviour.
 Examples are like personnel, finance,
marketing, production, operational research
and so on.

9. Micro environment is the environment that an
organization can influence. It may not be able to
Correct all flaws in the microenvironment, but it
has a much better control over the macro
environment.

10.  Consumers – needs , purchasing power and
behavior
 Suppliers
 Market intermediaries
 Competitors

11. I. Micro environment of business.
1) Suppliers
Supply raw materials and other components (Inputs)
Importance
- Reliable supply – continuous supply for smooth
functioning

12. 2) CUSTOMERS
Different categories of customers
i. Industrial customers
ii. Wholesale customers
iii. Retail customers
iv. Government customers
v. Foreign customers

13. 3) Market intermediaries
i. Middlemen.
ii. Physical distribution Firms: (warehouses and transport
firms)
iii. Marketing service agencies (Advertising agencies market
research firms, media firms, consulting firms)
iv. Financial intermediaries

14. 4. Competitors:
 The Threat of entry of new firms
 The Power of Buyers
 The Power of Suppliers
 The Power of Substitutes
 The Intensity of Rivalry among existing firms

15.  Macro Environment are major external and
uncontrollable factors that influence an
organization's decision making, and affect its
performance and strategies.

16.  Sociological
Factors
 Political Factors
 Legal Factors
 Educational
Factors
 Technological
Factors
 Economical
Factors
 Natural Factors
 Historical Factors

17. SOCIOLOGICAL FACTORS
It concerns with society as a whole; it covers health, media, education,
minorities, women, organized labour , legal system and demographics.
The biggest challenge to firms is the society's changing demands.
POLITICAL FACTORS
Political environment gives shape to business. Political stability, Government
administration, Philosophy of the political parties are some of political factor
which
affects the business environment

18. LEGAL FACTORS
Legal Environment has a permanent and lasting impact in shaping business .
Labour law act, Industrial dispute act, Minimum wages act, Law of contract,
Import & Export control act and tax law act are few legal factors.
EDUCATIONAL FACTORS
Educational cum cultural environment affects business activities and
managerial skills.These factors include literacy, attitude toward training and
skill required for a businesslike specialized, vocational and technical training

19. TECHNOLOGICAL FACTORS
Technology is about application of tools, methods and techniques to improve
production and processes. Technology is life for growth and competitiveness of
Business.
ECONOMICAL ENVIRONMENT
Economic environment conditions such as business cycle, unemployment,
Inflation,monitory policies, Industrial policies, trade policies etc also affects the
businessenvironment.

20. NATURAL & ECOLOGICAL FACTORS
Use of modern technology sometimes involves huge social cost in term of
Deterioration of environmental pollution and ecological balance. So business
environment should also consider about natural resources, weather & climatic
conditions, health hazards etc.
HISTORICAL FACTORS
Business Environment is also affected by historical factors. Business
environment in anumber of newly independent countries has been determined
by their past colonial status.