Words of Wisdom:

"Don't you hate pants?" - Essay4free

Business Environment

  1. Influencing Others In Business Environments
    Influencing Others in Business Environments Throughout human civilization, the art of selling ideas or products has been a cornerstone of society. Some...
  2. This Essay Outlines And Evaluates The Main Weaknesses When Understanding The Business Environment
    its benefits are numerous as it enables a better understanding of the business environment; however managers have to be vigilant when doing so. Some weaknesses come...
  3. Understanding International Business Environments
    intended outflow for a period of one year. Conclusion Scanning the business environment is an activity that needs to be conducted on a continual basis by...
Date Submitted:
12/04/2010 04:37 AM
Flesch-Kincaid Score:
30.1 
Words:
1384
Essay Grade:
no grades
Flag
Join Now!

Already a Member? Login Now

Business Environment
The term ‘business environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance. As one writer has put it– “Just take the universe, subtract from it the subset that represents the organisation, and the remainder is environment”. Thus, the economic, social, political, technological and other forces which operate outside a business enterprise are part of its environment. So also, the individual consumers or competing enterprises as well as the governments, consumer groups, competitors, courts, media and other institutions working outside an enterprise constitute its environment. The important point is that these individuals, institutions and forces are likely to influence the performance of a business enterprise although they happen to exist outside its boundaries. For example, changes in government’s economic policies, rapid technological developments, political uncertainty, changes in fashions and tastes of consumers and increased competition in the market — all influence the working of a business enterprise in important ways. Increase in taxes by government can make things expensive to buy. Technological improvements may render existing products obsolete. Political uncertainty may create fear in the minds of investors. Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones. Increased competition in the market may reduce profit margins of firms.
On the basis of the foregoing discussion, it can be said business environment, has the following features:
    (i) Totality of external forces: Business environment is the sum total of all things external to business firms and, as such, is aggregative in nature.
    (ii) Specific and general forces: Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers)...
Join Now to View the Full Essay

Comments

Express your owns thoughts and ideas on this essay by writing a grade and/or critique.

  1. No comments