Subject: Business Studies
The forces of business environment are its components. They influence the operation the operation of business. They are internal and external components. business environment refers to the aggregate of all the factor which influences the business operation. It is composed of an internal and external environment. The internal environment is controlled by business whereas externally is not controllable by business.
The sum total of all factors and forces that affect and influence the operation of a business is called business environment. It is surrounding where the business organization exists. Business starts, operate and die in an environment. Business environment either provide opportunities or threat.
According to S.P Robbins, "Environment refers to the institution or forces that affect business performance."
According to Keith Davis, "Business environment refers to institutions or forces that affect the organization's performance."
Business is surrounded by many factors like employees, politics, technologies, suppliers, customers etc. A business institution gets the input from the environment and transfers them into the output to supply again in an environment. When the environment in the business is supportive it will be a reason for success. In another case, it will import the threat to business.
In conclusion, the business environment refers to the aggregate of all the factor which influences the business operation. It is composed of an internal and external environment. The internal environment is controlled by business whereas externally is not controllable by business.
The business environment is broadly categorized into two types that is an internal and external environment.
The sum total of all factor and process that are inside the business and affects the operation of a business is called internal environment. The environmental factors such as employee, organization structure, corporate culture, employees, union etc. compose the internal environment. Internal environment makes the organization stronger or weak if they are supportive and against the business respectively. Internal environment factors are controllable and can be managed by the business. The elements of the internal environment are as follows:
The sum total of all the factor and forces that are outside the business and affects the operation of a business is known as the external environment of business. The environmental factors like legal, political, technological, social, competitors, customers, suppliers etc. are the elements of the external environment. As these factors are outside the business they can't be controlled by business. Business has to accept and adopt the external environment that will provide opportunities and the threat to business.
The external environment is broadly classified in the following ways:
1. General environment:
The environmental factor that belongs to the external environment and business has long-term effects with this. Some of the factors of the general environment are as follows.
2. Task/Specific Environment:
The environmental factors which are outside the business and are not controllable but can be managed are called task/ specific environment. The effects in the task environment in business can be seen directly in the general environment. The task environment is composed of the following factors:
References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu: Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.
What do you mean by business environment?
Business environment established and operated in the environment. The sum total of all factors and forces that affect and influence the operation of a business is called business environment. It is a surrounding where the business organization exists. Business starts operate and die in an environment. Business environment either provide opportunities or threat. Monitoring environmental changes have a very important place and role in the efficient functioning of a business.
According to S.P Robbins, "Environment refers to the institution or forces that affect business performance”
According to Keith Davis, "Business environment refers to institutions or forces that affect the organization's performance.
Business is surrounded by many factors like employees, political, technological, suppliers, customers, etc. A business institution gets the input from the environment and transfers them into the output to supply again in an environment. When the environment in the business is supportive it will be a reason for success. In another case, it will import the threat to business.
In conclusion, business environment refers to the aggregate of all the factor which influences the business operation. It is composed of an internal and external environment. The internal environment is controlled by business whereas externally is not controllable by business
What are the components of the business environment with a figure.
Business environment has two factors:
Components of External environment:
Components of Internal environment:
What do you mean by business environment? Explain the components of the internal environment.
ThBusiness Organization establishes, grows , operates in the environment. The sum total of all factors and forces that affect and influence the operation of a business is called business environment. It is a surrounding where the business organization exists. Business starts operate and die in an environment. Business environment either provide opportunities or threat.
According to S.P Robbins, "Environment refers to the institution or forces that affect business performance”
According to Keith Davis, "Business environment refers to institutions or forces that affect the organization's performance.
Business is surrounded by many factors like employees, political, technological, suppliers, customers, etc. A business institution gets the input from the environment and transfers them into the output to supply again in an environment. When the environment in the business is supportive it will be a reason for success. In another case, it will import the threat to business.
In conclusion, business environment refers to the aggregate of all the factor which influences the business operation. It is composed of an internal and external environment. The internal environment is controlled by business whereas externally is not controllable by business.
Components of Business Environment
Internal Environment
The sum total of all factor and process that are inside the business and affects the operation of a business is called internal environment. The environmental factors such as employee, organization, structure, corporate culture, employees, union etc. compose the internal environment. Internal Environment includes all those factors which influence business and which are present within the business itself. The components of internal environment are described below:
Employee
They are the people who work for the organization for salary. They provide mental and physical when employees are talented, skilled, experience, it will make the business strong. In opposite case, the organization will be weak. They are the assets of an organization and part of the organization.
Organizational Structure
Organizational structure is concerned with an overall framework for different roles, functions, and authority. The flow of communication and proper position relation in business is called organizational structure. It is a framework of an organization. The structure of the organization as well has the impact operation of business. When the organization structure is simple and easy to understand it will help in the achievement of an objective.
Co-operative Culture
The feeling that members in ana organization share is called culture. The production organization supportive of goal achievement. The non-cooperative and conflicting culture makes organization weak.Sometimes, companies allot shares to its employees which encourage employees to work hard. Therefore, co-operative culture is an important internal environment to affect the business operation.
Shareholders
The shareholders are the owners and have a direct interest in the performance of business. They are the key people to elected board of directors. The experiences effective directors are available only when there are educated shareholders. Therefore, the e shareholders of the company are important internal environment factors.
Employee Union
The labour union is formed to solve the problems of labour involved in the organization. It is there a preventive body of employees. It helps and solves the employee's problem when employees union is stronger and against to the business. Some business includes labour union leaders on the management board. They involved in decision-making process of an oganization
Explain the components of Business Environment.
Business environment is classified into internal and external which are explained below:
Internal Environment
The sum total of all factor and process that are inside the business and affects the operation of a business is called internal environment. The environmental factors such as employee, organization, structure, corporate culture, employees, union etc. compose the internal environment. Internal Environment includes all those factors which influence business and which are present within the business itself. The components of internal environment are described below:
Employee
They are the people who work for the organization for salary. They provide mental and physical when employees are talented, skilled, experience, it will make the business strong. In opposite case, the organization will be weak. They are the assets of an organization and part of the organization.
Organizational Structure
Organizational structure is concerned with an overall framework for different roles, functions, and authority. The flow of communication and proper position relation in business is called organizational structure. It is a framework of an organization. The structure of the organization as well has the impact operation of business. When the organization structure is simple and easy to understand it will help in the achievement of an objective.
Co-operative Culture
The feeling that members in ana organization share is called culture. The production organization supportive of goal achievement. The non-cooperative and conflicting culture makes organization weak.Sometimes, companies allot shares to its employees which encourage employees to work hard. Therefore, co-operative culture is an important internal environment to affect the business operation.
Shareholders
The shareholders are the owners and have a direct interest in the performance of business. They are the key people to elected board of directors. The experiences effective directors are available only when there are educated shareholders. Therefore, the e shareholders of the company are important internal environment factors.
Employee Union
The labour union is formed to solve the problems of labour involved in the organization. It is there a preventive body of employees. It helps and solves the employee's problem when employees union is stronger and against to the business. Some business includes labour union leaders on the management board. They involved in the decision-making process of an organization.
External Environment
External environment includes all those which influence business and exist outside the business. It is also referred as macro-environment. The environmental factors like legal-political technological, social, competitors, customer’s suppliers, etc. are the element of the external environment. As these factors are outside the business they can't be controlled by business. Business has to accept and adopt the external environment will provide opportunities and the threat to business. The following are the components of external environment:
The environmental factors which are outside the business and are not controllable but can be manage are called task specific environment. The effects in task environment in business can be seen directly in the general environment. The task environment is composed of the following factors:
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