BUSINESS ENVIRONMENT Business environment refers to forces factors individuals and institutions which are outside the control of business enterprise but these may effect its performance The environment of any organisation includes all condition events and influences that surround and affect it Features of Business Environment a All external forces Factors outside business organisation are included in Business Environment Internal factors such as relation between employees superior subordinate relationship etc Are not part of Business Environment b Specific general Specific which effect your business only general which effect all the businesses Inter relation All components of Business environment are interdependent c d Uncertainty No one can predict Business environment 100 accurately e Dynamic Condition in environment keep on changing f Complex it is difficult to scan environment g Relativity Same condition has different impart on different business Importance of Business Environment i First Mover Advantage Maximum benefits or profit by grabbing the opportunity at the earliest ii Warning Signal Come to know in advance for the coming constraints iii iv v vi or threats o Business due to scan of environment Help in Tapping Resources Collecting right type of resources as per present requirements of business by foreseeing the requirement due scan of Business Environment Help to Adapt Changes Bringing changes in your organisation as per changes in environment Help in making Planning and Policy Making plans and policies Keeping in mind conditions prevailing in environment Improvement in Performance With timely changes and innovation performance improves
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