This document provides an introduction to business environment. It defines business environment as all external factors that influence business operations and discusses its key characteristics. The document also outlines the importance of studying business environment, which includes helping businesses recognize opportunities and threats, ensure optimal resource use, and adapt to changing dynamics in order to achieve stability, growth and survival. Finally, the document briefly mentions different classifications of business environment.

1. Introduction to business
environment

2. Introduction
• Economic & social activity
• Provides Goods n services to society
• Earlier profit oriented then converted to
Customer oriented and now Societal Oriented
• Basis of need satisfaction
• Narrow in terms of environment hence has to
adapt to changing environment

3. Definition of business
• The activity of buying and selling goods,
manufacturing goods or providing services in
order to make profit. “
• Business is an institution organized and
operated to provide goods and services to
society under the incentives of private gain”-
Wheeler B .O

4. Features /characteristic of
business
• Buying selling activity
• Continuous in nature
• Deals with goods and services
• Activity for private gain
• Risk & uncertainty involved
• Supports Society
• Creativity & innovation
• Takes from the society
• Employment generation

5. Function / needs of business
• Regular supply Goods & Services
• Satisfaction Of Need & wants
• Optimum use of natural resources
• Better standard of living
• Must for growth of economy
• Revenue to govt
• Employment generation

6. Role of Business

7. What is business environment?
• Business environment is “the total of all things
external to firms and individuals, which affect
their organization and operations”
– B.O Wheeler
• Business environment “ Consist of all external
and internal factors that influence the complex
interaction of the market, production and
finance, the three basic components of our
business world.” – Joseph A Kriz & Curtiz J
Duggan

8. Characteristics/ Features of business
environment
• Broadly divided in two component
• Surrounding Situation
• Complex & dynamic in nature
• Multi-faceted
• Study involved-as varied aspect
• Influences business activity
• Must be adaptable
• Creates framework for planning
• Challenging & opportunity oriented
• Direct & lasting effect
• Business is inseparable

9. Significance / importance/ need of
study of business environment
• Recognize opportunity & threat
• Ensures optimum use of resources
• Accuracy in decision making
• Helps adapt to changing dynamics
• Stability, growth, survival
• Makes business socially acceptable
• Study level of competition

10. Classification of Business Environment

12. Business Structure