BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT

BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Today, we are going to provide basic notes introduction business environment in management notes CBSE study material for commerce students to become great and better managers in any organization. Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT

BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT
BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT

MEANING OF BUSINESS ENVIRONMENT 

The word ‘business environment’ involves that total of all individuals, organizations, and other forces that are outside the power of a business enterprise but that may change its performance. As one author has put it- “Just take the universe, subtract from it the subset that represents the organization, and the remainder is the environment”. 

Thus, the financial, cultural, political, technological, and other factors which run outside a business enterprise are part of its environment. So, the individual users or facing companies as well as the governments, consumer groups, competitors, courts, media, and other institutions working outside an enterprise constitute its environment. The major point is that these individuals, organizations, and forces are likely to affect the performance of a business enterprise although they happen to exist outside its limits.

For example, variations in government’s financial strategies, fast technological developments, political uncertainty, changes in styles and flavors of consumers, and increased opposition in the market – all impact the working of a business enterprise in big ways. An increase in taxes by the government can make things expensive to buy. Technological improvements may render existing products obsolete.

Political uncertainty may generate fear in the minds of investors. Changes in trends and flavors of consumers may change demand in the market from being products to new things. Increased competition in the market may reduce the profit margins of firms.

The business environment is termed as “the forces, factors and the institutions with which the businessman has to trade with to achieve its goals”. In general, we can say that a business environment is the surroundings in which the market exists. Whenever any businessman is managing or working then he has to communicate with the customers, suppliers and he has to make the transactions within the rules and regulations of the government. All these persons, institutions, and policies form a part of the business environment. Understanding all these factors, characters and institutions carefully is a must for every businessman. The complete awareness and understanding of the business environment are known as environment scanning. Environment scanning is managed to find out the importance of different factors and characters on business transactions. Environment scanning is described as a process by which companies monitor their appropriate environment to identify opportunities and threats affecting their business. 

No company can survive in the market by ignoring the effects of the Business Environment. Efficient management analyses the environment and makes changes in organizational policies to integrate its activities with the Business Environment. The most suitable example to prove the pact of Business Environment is the controversial case of Pepsi and Coke Company. Recently Consumer Organization (CES) has claimed to find pesticide contents in the cola drinks of Pepsi and Coke. Although the government, health ministry, and court have given clean chit to Pepsi and Coke Company then also both the companies are continuously advertising to prove and convince customers that these drinks are safe. They are doing so because the business and success of these companies not only depend upon the internal environment but these depend on external forces also.

Business Environments give conditions as well as opportunities for the businessman. For example, the organization such as MRTP Act and wealth restriction put controls on the businessman. On the other hand, the liberalization strategies, import repose policies bring opportunities for the businessman.

CATEGORIES OF BUSINESS ENVIRONMENT 

The business environment can be classified into two major categories : 

  • Economic Environment
  • Non-Economic Environment

Economic Environment: 

It consists of parts like fiscal policy, monetary policy, industrial policy, and the economic system of our country.

Non-Economic Environment: 

It consists of social, political, legal, and technological aspects of the business environment. 

Here, we are trying to provide you some information about basic notes for business studies, business studies tutorials, CBSE business studies notes for class 11 class 12 BBA MBA BCA MCA B.com M.com BMS MMS PGDM Entrepreneur other further management class.

Previously, we studied BASIC NOTES NATURE SIGNIFICANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CHARACTERISTICS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES CONCEPTS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES OBJECTIVES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES FEATURES NATURE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES IMPORTANCE OF MANAGEMENT BUSINESS STUDIESBASIC NOTES LEVELS OF MANAGEMENT BUSINESS STUDIESBASIC NOTES SIGNIFICANCE PRINCIPLES OF MANAGEMENT BUSINESS STUDIESBASIC NOTES TAYLOR SCIENTIFIC MANAGEMENT for BUSNIESS STUDIESBASIC NOTES PRINCIPLES OF SCIENTIFIC MANAGEMENTBASIC NOTES TECHNIQUES OF SCIENTIFIC MANAGEMENT, BASIC NOTES FAYOL PRINCIPLES OF MANAGEMENT, BASIC NOTES INTRODUCTION OF BUSINESS ENVIRONMENT

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