Transport and Communication System 7. The Components of business environment environment consist the elements that directly affects the company.
The success of the business depends upon identifying the needs, wants, likes and dislikes of the customers and meeting with their satisfaction. The businessman must closely monitor the technological changes taking place in his industry because he will have to implement these changes to remain in the competitive market.
The competing firms can influence business in a number of ways. Technological environment refers to changes taking place in the method of production, use of new equipment and machineries to improve, the quality of product.
To run the business successfully, it is necessary to understand the environment with in which the business operates. Shift from steam locomotives its diesel and electric engine.
They can do so by bringing new and cheap products in the market, by launching some sale promotion scheme or other similar methods. Removal of control from the foreign exchange and liberalisation in investment is encouraging foreign investors and NRIs to invest in Indian capital market.
Digital watches have killed the prospects and the business of traditional watches. External environment is further classified as: These factors are as under: What are the Different Components of Business Environment?
The common instances of Indian legal environment which have influenced business transactions recently are: The social behaviour of the employees greatly affects the working of the business. They are one of the most important factors in the external environment.
It includes the standard of living, taste, preferences and education level of the people living in the society where business exists. This clearly indicates that the customers do influence business. This helps in creating a corporate image and strengthens the standard of the firm in the market.
Values and ideology of political parties iv Legal Environment: For example, in when Janata Government came in power they made the policy of sending back all the foreign companies. Rather, each organization operates in an environment that affects everything, from the availability of skilled workers, to the price of raw materials.
Various laws and legislative acts.Internal environment includes all those factors which influence business and which are present within the business itself. These factors are usually under the control of business.
The study of internal factors is really important for the study of internal environment. These factors are: (i. Business Environment: The Elements of Business Environment ( Words) Article shared by: This article provides complete information about the elements/components of business environment!
The business environmental factors may be classified into different types. There are broadly two types of environment that affects the organisation.
COMPONENTS OF BUSINESS ENVIRONMENT After discussing the meaning of business environment, now we will discuss the various components of business environment. The various components of business environment are- External environment consists of those factors that affect a business enterprise from.
Free Essay: Components of business environment On the basis of extent of intimacy with the firm, the environmental factors may be classified into different. Components of business environment On the basis of extent of intimacy with the firm, the environmental factors may be classified into different levels or types.Download