Business Studies, asked by akshayakshi2614, 10 months ago

Distinguish between social environment and economic environment

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Answered by NeverMind11
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Explanation:

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Answered by smartbrainz
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Business can be understood as a firm's coordinated efforts to provide products and services to customers for profit. The number of companies or the amount of sales varies according to their scale. Nonetheless, all businesses have the same goal: benefit.

Explanation:

  • Environment refers to all external factors that affect the activity of the company. Environmental influences "are mainly, if not completely, external and beyond the control of and management of individual industrial companies. The competitive climate challenges a organization or offers massive opportunities to potentially dominate the market.
  • Environment includes social-economic, technical, manufacturer, competitive and governmental influences. There are two additional variables that have a major market impact. They are physical or or  natural  environment  and global environment
  1. Economic Environment: The company and its economic climate are closely linked. The organization obtains all necessary inputs from the economy and absorbs business units 'output. The term economic environment refers to all external economic factors which influence consumer and business purchasing habits and thus affect a company's output. Sometimes, these variables are beyond the control of a organization and can be big (macro) or low (micro). Macro factors comprise income, inflation, employment, tax rates, saving rates, currency exchange rate, and micro factors comprise competition, size of the available market, and availability and quality of suppliers.
  2. Social Environment: This refers to the attitude of people towards employment and wealth; position of the family, marriage, religion and education; ethical issues and corporate social responsiveness. Some of the customs, values, activities and behavior of various cultures are similar and some are various. If a organization operates in a multicultural society, the social external social environment becomes much more complex as the environment comprises of different sub-population with their distinctive unique values, beliefs and customs. The services and goods provided by businesses need to be tailored to the preferences of the customer and complement their behaviour. Every business, for example a loss of market shares to quick reactors, can be costly due to the lack or slow reaction to change in society.

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Various micro environmental factors which have an impact a business

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