Notes on Business environment

[Nymphs]

I passed my 12th exam and now i am planning for BBA (Bachelor in Business Administrator). I want to know about Business environment. Business Environment paper will be in the first semester and it consists of five units. What is a Business environment? What is a different Types of Business Environment? What is a Characteristics of Business environment? If anyone have any idea about it then Please reply me as soon as possible.

[Recruiter]

Business Environment is collected of two words ‘Business’ and ‘Environment’. In easy language, the situation in which a person remains busy is known as Business. The word Business in its economic sense means human behavior like construction, extraction or purchase or sales of goods that are performed for earning profits. ‘Environment’ refers to the aspects of surroundings. Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are out of control in environment and affects the performance of organization.

[Masters]

Business Environment has two components:
1. Internal Environment
2. External Environment

Internal Environment:
It includes 5 Ms i.e. man, material, money, machinery and management, generally within the control of business. Business can build changes in these factors according to the change in the performance of activity.

External Environment:
Those factors which are away from the control of business activity are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types:
1. Micro/Operating Environment
2. Macro/General Environment

[Educated]

Business environment is a set of political, economic, social and technological (PEST) forces that are mostly outside the control and authority of a business and that can potentially have both a positive and a negative impact on the business.

Characteristics:-
1. Business environment is compound in nature.
2. Business environment is continuously changing process.
3. Business environment is different for dissimilar business units.
4. It has both long term and short term impact.
5. Unlimited influence of external environment factors.
6. It is very unsure.
7. Inter-related components.
8. It includes both internal and external environment.