Presented by : Rika Agarwal B.

com -1 Sec - B

Submitted to: Mona Jain

Business includes all activities connected to production , trade ,banking, insurance, finance, advertising , packaging and numerous other related activities.
The environment include factors outside the firms which can lead to opportunities & threats to the firm. Although there are many factors, the most important of the sectors are socio-economic, technological, suppliers, competitors & governments.

Exchange of goods and services Profit motive Customer satisfaction Innovation and research Human activity

Business Environment is a complex internal & external environment of a business firm. Internal environment is controllable & External environment is uncontrollable by the business. Business is affected by the environment & the environment is also affected by business.

MACRO ENVIRONMENT

Socio-cultural Forces

MICRO Environment

Economic Factors Shareholders

Business Env. Variables

Ever Changing

Governments Special Interest Groups Creditors Communities

Internal Environment

Time to time
Place to place

Suppliers

Men, Money, Machine, Material, Minutes

Competitors Trade Associations

Political Factors

Employees/ Labor Unions

Technological Factors

Internal factors or the Internal Environment

include 5 Ms: Men, Money, Machinery, Materials and management.

THE MICRO-ENVIRONMENT

influences the organization directly. includes suppliers, customers ,market intermediaries, competitors, public.

Supplier is a person who supplies raw material and components to the company. Customers : a company having different categories of customers like individuals households and industries.

Competitors: are those firm who supplies same or similar product in the market and create competition in the market. Market intermediaries: It play a role of mediator between customer and company.

Public : A public is any group that has an actual or potential interest in organisation's.

Includes all factors influencing organization & out of its direct control.
Includes Political, Economic, Social-Cultural, Technological, Natural, Demographic Enviornment.

Political

Political stability in the country Defence and military policy Government policy Relation of our Nation with other countries

Economic

Economic conditions economic policies Inflation Employment

Social Cultural
set of values, beliefs, rules, & institutions held by a specific group of people or learned norms based on attitudes, values, beliefs & rules.

Technological
It includes economic development & human progress like computer ,mobile, internet.

Natural
It includes natural Resources, weather and climatic conditions, Location, pollution control etc. Demographic Population size, Family size, Age structure, education.

Any Questions?

Thank you