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
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
