What Is the Business Environment?
Business Environment includes all those internal and external factors, players which have an important impact on the function of the business.
It is divided into 2 types:
- Internal Environment
2. External Environment
What Is the Internal Environment?
Internal environment includes all those factors or forces or players operating inside of an organization. It can be controlled by an organization.
Example: Technology, Work Force, Work Process and Organization Objective
What Is the External Environment?
External environment includes all those factors or forces or players operating outside of an organization. It can not be controlled by an organization. It is divided into 2 types:
I. Micro Environment
ii. Macro Environment
What Is a Micro Environment?
Micro Environment includes all those factors or processes or players which have a direct impact on the function of the business. It is also known as the Operating Environment.
Example; Customers, Competitors, Government, Supplier and Public
What Is a Macro Environment?
Macro Environment includes all those factors, forces or players which have an indirect and general impact on the function of the business. It is also known as the General Environment.
Example:
- Political Environment
- Economical Environment
- Natural Environment
- Socio-Cultural Environment
- Technological Environment
- Legal Environment
Political Environment: Political Environment includes all those factors, forces or players which have a political impact on the function of the business.
Economical Environment: Economical Environment includes all those factors, forces or players which have an economical impact on the function of the business.
Natural Environment: Natural Environment includes all those factors, forces or players which have a natural impact on the function of the business.
Socio-Cultural Environment: It includes all those factors, forces or players which have a social and cultural impact on the function of the business.
Technological Environment: Technological Environment includes all those factors, forces or players which have a technological impact on the function of the business.
Legal Environment: Legal Environment includes all those factors, forces or players which have a legal impact on the function of the business.