Business Enviroment

The term Business Environment consists of two words 'Business' and 'Environment'. Put simply, the country where a person remains busy known as Business. Business words in the economic sense is the human activity such as production, extraction or the purchase or sale of goods is done for profit.On the other hand, the word 'environment' refers to environmental aspects. Therefore, the Business Environment can be defined as a set of conditions - Social, Legal, Economic, Political or uncontrolled institutional in nature and affect the functioning of the organization. Business Environment has two components:1. Internal Environment2. External Environment

Internal Environment: This covers 5 Ms. namely human, material, money, machinery and management, usually in control of the business. Businesses can make changes in these factors in accordance with changes in the functioning of the company.External Environment: The factors that are beyond the control of the company's business is included in the external environment. These factors are: the Government and Law, Geo-Physical Factors, Political Factors, Socio-Cultural Factors and Demo-graphic factors, etc. These are two types:
1. Micro / Business Environment2. Macro Environment / Public

Micro / Business Environment: The environment is close to the business and affect the ability to work was known as Micro or Business Environment. It consists of Suppliers, Customers, Market Intermediaries, Competitors and General.

(1) Suppliers: - They are the people who supply raw materials and components required for the company. They must be reliable and the business must have some suppliers that they should not just rely on one supplier.

(2) Customer: - Customer regarded as the king of the market. The success of every business depends on their customer satisfaction levels. Customer Type:(I) Traders(Ii) Retailer(Iii) Industry(Iv) The Government and Other Institutions(V) Foreign

(3) Market Intermediary: - They work as a liaison between businesses and final consumers. Type: -(I) intermediary(Ii) Marketing Agent(Iii) Financial Intermediaries(Iv) Intermediary Physical

(4) Competitors: - Every step of competitors affects the business. Business to conform in accordance with the strategy of competitors.

(5) General: - Any group which has interests in the company's actual business referred to as media such as public and local communities. They may be users or non-users of the product.Macro / General Environment: - This includes the factors that create opportunities and threats to the business units. Here are the elements of Macro Environment:(1) Environmental Economics: - It is very complex and dynamic in nature is constantly changing with changes in policy or political situation. He has three elements:(I) Public Economic Conditions(Ii) State Economic Policy(Iii) Economic Systems(Iv) Other Economic Factors: - capital market infrastructure facilities, Banking, Insurance companies, money market, etc.

(2) Non-Economic Environment: - The following is included in non-economic environment: -(I) Environmental Politics: - It affects the different business units extensively. Component:(A) Government's Political Beliefs(B) Strength Homeland Politics(C) Relations with other countries(D), Defense and Military Policy(E) Centre State Relations in Soil Water(F) Thinking Party Opposition to the Business Unit(Ii) Socio-Cultural Environment: - Effects of culture and carried out by social factors, not in control of the business, known as the Social-Cultural Environment. These factors include: the attitude of people to work, family system, caste system, religion, education, marriage etc.(Iii) Environmental Technology: - A systematic application of scientific knowledge to practical tasks is known as technology. Every day there have been major changes in products, services, lifestyle and living conditions, these changes must be analyzed by each business unit and must adapt to these changes.(Iv) Natural Environment: - This includes natural resources, weather, climate conditions, port facilities, topographic factors such as land, sea, river, rainfall, etc. Each business unit should look for these factors before choosing a location for their business.(V) Environment Population: - This is the study of perspective that is the size of the population, living standards, growth rate, age sex composition, family size, income level (top level, middle level and lower level), education level etc.. Each business unit should look at the features recongnise population and their needs and produce appropriate.(Vi) International Environment: - This is especially important for the industry is directly dependent on imports or exports. Factors that affect businesses are: Globalization, Liberalization, foreign business policy, cultural exchanges.(sources:http://www.thegeminigeek.com/what-is-business-environment/)