Module 2 Business Environment ppt for beginners

Business environment for beginners The business environment refers to the combination of external and internal factors that influence a company's operating situation, including economic conditions, legal and regulatory frameworks, technological advancements, competitive dynamics, social and cultural trends, and environmental considerations. It encompasses everything from market trends and consumer behavior to government policies and technological innovations that can affect a company's performance, opportunities, and risks.

Navigating the business environment requires a strategic approach, where companies continuously monitor and analyze these factors to make informed decisions. This includes assessing market opportunities, managing risks, and leveraging strengths while addressing weaknesses. A dynamic business environment means that companies must be agile and responsive, adapting to changes in consumer preferences, emerging technologies, and shifting regulatory landscapes. Successful businesses often engage in environmental scanning, SWOT analysis, and strategic planning to stay ahead of competitors and meet the evolving demands of the market. By aligning their operations with the external environment, companies can better achieve sustainable growth and long-term success.Understanding and adapting to this environment is crucial for businesses to thrive and maintain a competitive edge in their respective industries.

1. Definition of Business Environment According to Davis, Keith: “ Environment of a business means the aggregate of all conditions, events and influences that surround and affect it.” Main Features/ Nature of Business Environment:- Environment is the surrounding situation Environment is multi-faceted and dynamic It has a far reaching impact on business It needs adaptability Two broad components Environment is complex and uncertain

2. Inter- Relationship between Business and Environment Closely related concepts Business has limited capacity to influence environment Continuous interaction with environment Integrated approach to business environment is a must for survival

3. BUSINESS ENVIRONMENT EXTERNAL INTERNAL

4. COMPONENTS OF INTERNAL ENVIRONMENT Goals of the organization Value based management Corporate image Physical and Financial resources Human Resources Labour Relations R&D facilities Strong Financial Base

5. EXTERNAL ENVIRONMENT MACRO MICRO

6. Components of Micro Environment Corporate Resources Suppliers Customers Middlemen Competitors Society

7. Components of Macro Environment Political Economic Social and Cultural Technological Legal Ecological/ Natural Demographic International Ethical

8. Educational Environment Educational Environment is the economic surrounding or situation within which the education , training and manpower development activities are undertaken. It is the education system which creates human capital. Features of educational environment in India Influencing factors Close connection with business Business supports education Position of educational environment in India

9. Impact of Education on Business Growth of Professionalism in business Change in attitude Inflow of social skills in business Trained leadership in business sector Creativity and innovation in business Ensures optimum utilization of resources in business

10. Measures to improve standards in education Management Courses- high calibre Sponsored educational institutions Privatization and globalization in higher education Use of modern techniques Training to teachers Industry and Academics Quality education

11. Measures to improve education environment in India Expenditure to be raised Adequate opportunities Literacy rate to be increased Funds for research Quality education Autonomy Vocational education and Skill development