Definition of Business Environment is sum or collection of all internal and external factors such as employees, customers needs and expectations, supply and demand, management, clients, suppliers, owners, activities by government, innovation in technology, social trends, market trends, economic changes, etc. These factors affect the function of the company and how a company works directly or indirectly. Sum of these factors influences the companies or business organisations environment and situation.
Business environment helps in identifying business opportunities, tapping useful resources, assists in planning, and improves the overall performance, growth, and profitability of the business. There are various types of Business Environment like Micro Environment and Macro Environment. Business Environment is the most important aspect of any business. The forces which constitute the business environment are its suppliers, competitors, media, government, customers, economic conditions, investors and multiple other institutions working externally. So let us start with the introduction to business environment and learn its importance.
Forms of Business Organizations:
Forms of the business organization depend on the criteria like the nature of the business, size of operations and on many more things. Here let us take a look at the various forms of business organisation and some important points about business ownership, Scales of Business We always keep hearing things small business, large business, MNCs on a regular basis.
These terms are nothing but a way to define the scales of business. Here in this chapter, we will study about different small-scale, medium-scale, etc. Also, we will focus on the factors used to distinguish the scale of one industry from the other. Let us study more about scales of business in detail.
Emerging Trends in Business:
Like in any other industry, business industries to witness various changes in the fashion of it’s working.
Business Functions :
The term ‘Business Functions’ encompasses a lot more than one may think. From the resources to the management of the resources, all comes under the study of business functions. A business can be established, but to successfully sustain a business, the business needs resources like finance, for which it has to depend on financial institutions.
Acceptance of social norms, for which it has to depend on society. Proper market conditions, for which it has to depend on the market. The sale of products/services, for which it has to depend on the customers. The labour, for which it has to depend on society. Then there are natural resources and raw material, for which it has to depend on Nature. Also, the legal support of the government, for which it has to depend on the government.
There are many factors and dimensions that affect Business Environment. These factors are many different components of a single concept called Business Environment. These factors which business depends upon aren’t standstill, they are very dynamic and ever-changing. For example, trends, the trend of fidget spinners gave the biggest big push the silicone mold industry has ever received.
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