This document summarizes key aspects of business and the business environment. It defines business, commerce, and industry. It also defines the business environment and lists its internal and external components. The external components include the micro environment of customers, suppliers, competitors, and intermediaries, as well as the macro environment of economic, political, social, legal, and technical factors. Globalization is discussed in terms of increasing integration and connectivity between markets through trade, investment, and cultural exchange. The economic environment and factors affecting it are also summarized, including the economic system, economic conditions like GDP and unemployment, and economic policies.

1. Presented To :
Dr. C.P. Thakor
Asst. Professor
S.K.School of Business Management,
HNGU, Patan
S.K. School of Business Management
H.N.G.U , Patan
Presenting By :
Name Roll No.
Desai Dhaval 09
Pankhaniya Nikunj 33
Thakkar Manisha 45
Rabari Reshma 40

2. • Business :
Business is an economic activity, concerned
with the provision of goods and services with
an aim of earning a profit.
the industry is all about the production goods,
whereas commerce focuses on their
distribution of goods and services.

3. Business
environmentBusiness Environment

4. Business environment
may be defined as the
total surroundings,
which have a direct or
indirect bearing on
the functioning of
business.

5. Components of business environment
• A) Internal environment
– Plans & policies
– Human resources
– Financial resources
– Plant & machinery
– Labour management

6. • B) external environment
– 1)micro environment
• Customer
• Supplier
• Competition
• Intermediate

7. • 2) macro environment
– Economic environment
– Political environment
– Social environment
– Legal environment
– Technical environment

9. Meaning of Globalization
Globalization essentially means integration of
the national economy with world economy.
It implies a free flow of information , ideas,
technology, goods & services, capital and
even people across different countries and
societies.
It increases connectivity between different
markets in the from of trade, investment and
cultural exchange.

10. • Improved Communication
• Improved Transport
• Global Banking
• The Growth of MNC’s

11. • Export and Import of goods and service
become easier.
• Adaptation of new Technology.
• Increase export promotion scheme.
• Connect world wide economy
• Open economy.

12. Global Market
Foreign Trade
Transfer of Resources
Foreign Investment
Competition

13. Job insecurity
Loss of domestic industries
Unemployment
Transfer of natural resources
Dominance of foreign institutions.

15. • The economic environment refers to all the
economic factors that affect commercial and
consumer behavior.
• The economic environment consists of
external factors in a business market and the
broader economy that can influence a
business.

16. •Factors Affecting the Economic Environment
Economic Systems:
Capitalist Economy:
no restrictions
private ownership of factors of production.
UAE
Socialist Economy:
characterized by government control and central planning
authority.
 North Korea
Mixed Economy:
India

17. Economic Conditions:
GDP
 4.5% (Q2, FY 2019-20)
per capita income :
 $2,172 (2019 est.)
• National income:
9.45 lakh crores PPP dollars (2017)
• Balance of payments:
• Unemployment
– 6.1% (FY 2018)

18. Economic Policies:
Industrial Policy:
Fiscal Policy:
Monetary Policy:
Foreign Investment Policy:
Import Export Policy: