Business Environment

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THE TERM OF BUSINESS ENVIRONMENT IS COMPOSED OF TWO WORDS BUSINESS AND ENVIRONMENT.Business Environment

WHAT IS BUSINESS..??ABUSINESSIS A LEGALLY RECOGNIZEDORGANIZATION DESIGNED TO PROVIDEGOODSANDSERVICES TOCONSUMERS WITH THE MOTIVE OF EARNING PROFITS.

WHAT IS ENVIRONMENT..??CIRCUMSTANCES,INFLUENCES, STRESSES, ANDCOMPETITIVE, CULTURAL, DEMOGRAPHIC,ECONOMIC, NATURAL, POLITICAL, REGULATORY, AND TECHNOLOGICALFACTORS(CALLEDENVIRONMENTAL FACTORS) THAT EFFECT THE SURVIVAL,OPERATIONS, ANDGROWTHOF ANORGANIZATION.

Business EnvironmentBusiness decisions are influenced by two sets of factorsInternal factors (The Internal Environment) External Factors( The External Environment)BUSINESS ENVIRONMENTINTERNAL FACTORSEXTERNAL FACTORS

The Internal factorsThe External factorsBusiness factors

INFLUENCING BUSINESS ENVIRONMENT

EXTERNAL MICRO MACROSUPPLIERS CUSTOMERCOMPETITORS ECONOMIC POLITICAL LEGAL TECHNOLOGICAL SOCIAL

SUPPLIERS

THOSE WHO SUPPLY THE INPUTS TO THE COMPANY.

COMPETITORS

ECONOMIC

It concerns with society as a whole; it covers health, media, education,minorities, women, organized labour , legal system and demographics.The biggest challenge to firms is the society's changing demands.POLITICAL

POLITICAL ENVIRONMENT GIVES SHAPE TO BUSINESS. POLITICAL STABILITY, GOVERNMENTADMINISTRATION, PHILOSOPHY OF THE POLITICAL PARTIES ARE SOME OF POLITICAL FACTOR WHICHAFFECTS THE BUSINESS ENVIRONMENT

LEGAL

Legal Environment has a permanent and lasting impact in shaping business .Labour law act, Industrial dispute act, Minimum wages act, Law of contract,Import & Export control act and tax law act are few legal factors.

TECHNOLOGICAL

TECHNOLOGY IS ABOUT APPLICATION OF TOOLS, METHODS AND TECHNIQUES TO IMPROVEPRODUCTION AND PROCESSES. TECHNOLOGY IS LIFE FOR GROWTH AND COMPETITIVENESS OFBUSINESS.

SOCIAL

It concerns with society as a whole; it covers health, media, education,minorities, women, organized labour , legal system and demographics.The biggest challenge to firms is the society's changing demands.Economic EnvironmentEconomic policiesSome types or categories of business are favourably affected by government policy, some adversely affected, while it is neutral to some others.E.g. a restrictive import policy may greatly help the import competing industries, while a liberalisation of the import policy may create difficulties for such industries

Economic SystemThe scope of the private business depends on the economic system.The freedom of the private enterprise is the greatest in the free market economy.

CONCLUSION. THE BUSINESS ENVIRONMENT OF INDIA IS BETTER THAN THE OTHER COUNTRIES. THE GDP OF INDIA IS RECORDED 5.9% IN THE YEAR 2013-14 WHICH IS BETTER THAN OTHER COUNTRIES. THE INDIAN GOVERNMENT HAS TAKEN MANY STEPS TO IMPROVE THE CONDITIONS OF THE COUNTRY AND WHICH HAVE HELPED THE BUSINESS ENVIRONMENT TO IMPROVE AND EXPAND.

By Ashad ahmad Himanshu singhPrasoon agnihotriHimanshi choudharyAshish pandat