BUSINESS ENVIRONMENT Sm t. Suvarna Walikar Assistant Professor G F G College, Khanapur

1) Large size: Mittal, reliance, sbi, ongc, DLF 2) Market driven not Govt. regulated 3) Technology based 4) Modern and new type of business 5) MNC’s 6) Diversification 7) Role of government 8) Mergers and acquisitions 9) Power 10) Good corporate citizenship

BUSINESS ENVIRONMENT Environment is the surrounding or conditions in which a society is existing Business environment refers to the factors or conditions that influence the behaviours and practices of business

DEFINITIONS Keith Davis “Business environment is the aggregate of all conditions, events and influences that sorround and affect it”

LINKAGE BETWEEN BUSINESS AND ENVIRONMENT Environment NaturalSocial Business

CLASSIFICATION OF ENVIRNOMENT INTERNAL EXTERNAL FIRMS ORGANIZATION MANAGEMENT OBJECTIVES VALUES MISSION ASSETS HUMAN RESOURCE SUPPLIERS CUSTOMERS MARKETING SYSTEM POLITICAL SET UP TECHNOLOGICAL ASPECTS DEMOGRAPHY NATURE

Business environment is of two types 1 internal factors: are the conditions existing within the organization. Also called as controllable factors 2 External factors: are conditions prevailing outside the business organization. Also called as un controllable factors

COMPONENTS OF BUSINESS ENVIRONMENT INTERNAL FACTORS: 1. ORGANIZATION STRUCTURE AND MANAGEMENT 2. VALUE SYSTEM 3. MISSION AND OBJECTIVES 4. HUMAN RESOURCE 5. FINANCIAL FACTORS 6. MARKETING FACTORS 7. R&D FACILITIES 8. ASSETS EXTERNAL FACTORS I. Micro: suppliers, customers, employees, competitors, marketing intermediaries, publics and other entities II. Macro: A) Economics:- internal and international B) Non Economic:- political, legal, socio- cultural, demographic, technological, natural, geographical, and sectorial

MAJOR PLAYERS IN ENVIRONMENT / Environment factors affecting BUSINESS  Customers  Workers and trade union  Government and political parties  Suppliers  Intermediaries  Publics  Competitors  Financial institutions

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