Meaning : A business (also known as enterprise or firm) is an organization involved in the trade ofgoods, services, or both to consumers.

[1] Business plan and Business model determine the outcome of an active business operation. Businesses are predominant in capitalisteconomies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit or state-owned. A business owned by multiple individuals may be referred to as a company, although that term also has a more precise meaning. The etymology of "business" relates to the state of being busy either as an individual or society, as a whole, doing commercially viable and profitable work. The term "business" has at least three usages, depending on the scope the singular usage to mean a particular organization; the generalized usage to refer to a particular market sector, "the music business" and compound forms such

as agribusiness; and the broadest meaning, which encompasses all activity by the community of suppliers of goods and services. However, the exact definition of business, like much else in the philosophy of business, is a
matter of debate and complexity of meanings.

Definition : An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of invest ment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, not-forprofit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.

Introduction to Business Environment: The formula for business success requires two elements - the individual and theenvironment. Remove either value and success becomes impossible. Businessenvironment consist of all those factors that have a bearing on the business. The term'business environment implies those external forces, factors and institutions that are beyond the control of individual business organisations and their management and affectthe business enterprise. It implies all external forces within which a business enterpriseoperates. Business environment influence the functioning of the business system. Thus, business environment may be defined as all those conditions and forces which areexternal to the business and are beyond the individual business unit, but it operates withinit. These forces are customer, creditors, competitors, government, socio-culturalorganisations, political parties national and international organisations etc. some of thoseforces affect the business directly which some others have indirect effect on the business

5 Business Features Adopted by Raymonds : Control Environment : A company's control environment reflects top management's ethical values and leadership styles, corporate policies, human resource procedures and operating mechanisms. A control environment also includes all controls---or tools to prevent losses---relating to financial accounting, technology systems and regulatory compliance methodologies. Two types of factors affect a firm's operating environment: external and internal. External factors could relate to industry trends, regulatory changes or competitors' actions. Internal elements might relate to departmental policies, employee safety programs or the organization's mission statement, vision and values.

Risk Assessment : Risk assessment activities help a company's departmental and segment-level managers understand risks involved in corporate activities. There are a variety of business risks, including operational, regulatory, reputation, market and credit risks. Risks also could be political---for a firm operating internationally---or relate to currency fluctuations. Internal and external auditors partner with departmental risk managers to evaluate, document, assess and report risks. Risk classifications could be "High," "Medium" and "Low," or "Tier 1," "Tier 2" and "Tier 3," depending on the loss amount that managers expect. Sponsored Links Career Enhancement Oppn Business Continuity Management-BCM Top companies recruit BCM trained Control Activities:

Control activities relate to procedures, mechanisms and policies that employees perform in corporate activities. Such procedures ensure that employees comply with regulatory standards, senior management's guidelines and industry practices. A control is a set of instructions that management puts into place to prevent losses due to error, fraud or technology malfunction. A control must be adequate and effective to prevent or mitigate---that is, reduce---losses. An adequate control indicates rules for task performance, problem reporting and decision making. An effective control remedies internal weaknesses appropriately. Information and Communication : Information and communication systems are the backbone of a company's activities. Computer software, technology infrastructure and information technology (IT) employees are parts of these systems. A corporation's information controls must be adequate and effective; they also must comply with regulatory requirements, company policies and the Information Systems Audit and Control Association (ISACA) standards.

ISACA is an organization that provides training and professional development opportunities for information systems auditors. Monitoring Monitoring activities are procedures that a company's management, departmental risk managers and internal auditors put into place to track major risks across the company. An organization typically achieves monitoring goals by requiring each segment or department to prepare monthly or quarterly risk and control self-assessment---or RCSA --reports and rate risks based on potential losses. Senior managers and audit committee members focus more on "Tier 1" or "Tier 2" risks while lower-level employees remedy "Tier 3" risks.

Main External Factors The main factor that affects most business is the degree of competition how fiercely other businesses compete with the products that another business makes. The other factors that can affect the business are:

Social how consumers, households and communities behave and their beliefs. For instance, changes in attitude towards health, or a greater number of pensioners in a population.

Legal the way in which legislation in society affects the business. E.g. changes in employment laws on working hours.

Economic how the economy affects a business in terms of taxation, government spending, general demand, interest rates, exchange rates and European and global economic factors.

Political how changes in government policy might affect the business e.g. a decision to subsidise building new houses in an area could be good for a local brick works.

Technological how the rapid pace of change in production processes and product innovation affect a business.

Ethical what is regarded as morally right or wrong for a business to do. For instance should it trade with countries which have a poor record on human rights.

The Internal Business Environment The purpose of an organisation: must be communicated establishes culture Mission statement relays purpose of business Vision/Mission Statements A Mission statement attempts to capture (in simple terms) what the business does and how it works. Or why it exists. A Vision statement states in broad terms where a business wishes to be. Mission Statement Our reason for being is to: Dedicate our business to the pursuit of social and environmental change. Creatively balance the financial and human needs of our stakeholders: employees, customers, franchisees, suppliers and shareholders. Courageously ensure that our business is ecologically sustainable, meeting the needs of the present without compromising the future. Meaningfully contribute to local, national and international

communities in which we trade, by adopting a code of conduct which ensures care, honesty, fairness and respect. Passionately campaign for the protection of the environment, human and civil rights, and against animal testing within the cosmetics and toiletries industry. Tirelessly work to narrow the gap between principle and practice, whilst making fun, passion and care part of our daily lives.

Mission StatementWe assist and encourage informed decision making,research and discussion within governments and thecommunity, by leading a high quality, objective andresponsive national statistical service. is committed to protecting the environment, health and safety of our employees, customers and the globalcommunities where we operate. We recognize that byintegrating sound environmental, health and safetymanagement practices into all aspects of our

business, we canoffer technologically innovative products and services whileconserving and enhancing resources for future generations. strives for continuous improvement in ouren vironmental, health and safety management systems and inthe environmental quality of our products, processes andservices.

Corporate Culture refers to a businesss values beliefs business principles traditions ways of operating and internal work environment closely linked to ethical behaviour Official corporate culture can be expressed in ads, slogans eg Delivering more than ever Making Life Easier The real corporate culture Real corporate culture (usually unwritten) is likely to be evident only in some form of direct contact with the business and from observing the following indicators: management style attitude of

management to staff and staff to management relations among staff budgets and other statements of the organisations practices customer relations style of dress and language within organisation

Business Ethics the moral standards and principles that guide peoples decisions and actions. Ethical people do what they believe is the right thing. Modern business ethics are expected to include a sense of social responsibility or a concern for the condition of society. Self-interest and the profit motive are very strong in some cultures: management can see ethical concerns as soft and a waste of time and money. Other cultures give prominence to business ethics, with many organisations having fully operational codes of ethics in place. the observation of the manner in which these organisations operate will confirm whether such a code is truly practised.

internal factors are: 1) Organizational structure 2) Production 3) Marketing 4) Finance 5) Human Resource 6) R & D

Definition Of External Environment : Conditions, entities, events,and factors surrounding an organization that influence its activities a nd choices, and determine its opportunities and risks. Also called operating environment.

The External Business Environment : A business converts inputs into outputs in order to make a profit. But a business does not function in a vacuum. It has to act and react to what happens outside the factory and office walls. These factors that happen outside the business are known asexternal factors or influences. Duncan (1972) defined business external environment as all the factors outside an organization that are taken into consideration by the organization in its decision making. Some examples of external factors A change in government A change in the funding model New legislation e.g. relating to Data Protection, Freedom of Information, Disability, Health and Safety A change in the market for particular subjects Economic recession in a country that provides a large proportion of your overseas students A competitor merges with another institution or

changes its course portfolio A major system supplier goes out of business

Introduction : Incorporated in 1925, Raymond Group (BSE: 500330) is one of India's largest branded fabric and fashion retailers. It is one of the leading, integrated producers of worsted suiting fabric in the world, with a capacity of producing 31 million meters of wool & wool-blended fabrics. The Group owns apparel brands like Raymond, Raymond Premium Apparel, Park Avenue, Park Avenue Woman ColorPlus & Parx. All the brands are retailed through The Raymond Shop (TRS) One of the largest network of over 700 retail shops spread acrossIndia and overseas, in over 200 cities. In addition, the Group also has business interests in readymade garments, designer wear,cosmetics & toiletries, engineering files and tools, prophylactics and air charter operations.

Defination of internal Business Environment : A business can never be profitable if it is ignoring the dynamic internal and external environment. By examining the internal and external environment, an organization develops its long term objectives and then it chooses a particular strategic pathway to achieve those objectives. But this entire process can be completed only after a careful analysis of internal andexternal environment. Although it is an aspect of strategic management, but for the convenience lets discuss it under the subject of managerial environment.