The Business Enviroment
The word ‘Environment’ refers to the aspects of surroundings. Therefore, Business Environment may be defined as a set of conditions – Social, Legal, Economical, Political or Institutional that are uncontrollable in nature and affects the functioning of organization. Business Environment has two components:
1. Internal Environment
2. External Environment
Internal Environment: It includes 5 Ms i.e. man, material, money, machinery and management, usually within the control of business. Business can make changes in these factors according to the change in the functioning of enterprise.
External Environment: Those factors which are beyond the control of business enterprise are included in external environment. These factors are: Government and Legal factors, Geo-Physical Factors, Political Factors, Socio-Cultural Factors, Demo-Graphical factors etc. It is of two Types:
1. Micro/Operating Environment
2. Macro/General Environment
Why Study Business
There is a strong argument that in the future everyone will need to have had a business education. Whatever you do in your professional life, the chances are that it will involve some ‘business’. Scientists, engineers, even artists, will inevitably have to understand at least the basics of business, and probably a lot more.
What is Business
An economic system in which goods and services are exchanged for one another or money, on the basis of their perceived value. Every business requires some form of investment and a sufficient number of customers to whom its output can be sold at profit on a consistent basis.