Explain scope of business environment
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Answer:
Meaning of Business Environment …
Business environment refers to the surrounding or factors which affect the operations of the business. It refers to the area where the business exists. It consists of several factors that affect the functioning, growth, profitability and even continuation of the business. Factors that constitute a business environment are customers, suppliers, competitors, investors, technology, economic conditions, government, etc. These all factors affect the success or failure of any business and bring several opportunities, threats, and challenges to it.
Business environment refers to the surrounding or factors which affect the operations of the business. It refers to the area where the business exists. It consists of several factors that affect the functioning, growth, profitability and even continuation of the business. Factors that constitute a business environment are customers, suppliers, competitors, investors, technology, economic conditions, government, etc. These all factors affect the success or failure of any business and bring several opportunities, threats, and challenges to it.The business environment is a dynamic concept as it comprises of several factors which keep on changing continuously. It can be broadly classified into two different categories: Internal environment and External environment. Internal environment includes all those factors which are internal to organisation and are under its control. These factors provide strengths and weaknesses to the organization. Internal environment consists of physical resources, plan and policies, corporate culture, vision and objectives, human resources, and organization culture. Whereas the external environment includes all those factors which are external to the organization and are not under its control. The external environment brings opportunities or threats to the business. It includes factors like customers, suppliers, competitors, society, technology, economic, political, and cultural environment.
Business environment refers to the surrounding or factors which affect the operations of the business. It refers to the area where the business exists. It consists of several factors that affect the functioning, growth, profitability and even continuation of the business. Factors that constitute a business environment are customers, suppliers, competitors, investors, technology, economic conditions, government, etc. These all factors affect the success or failure of any business and bring several opportunities, threats, and challenges to it.The business environment is a dynamic concept as it comprises of several factors which keep on changing continuously. It can be broadly classified into two different categories: Internal environment and External environment. Internal environment includes all those factors which are internal to organisation and are under its control. These factors provide strengths and weaknesses to the organization. Internal environment consists of physical resources, plan and policies, corporate culture, vision and objectives, human resources, and organization culture. Whereas the external environment includes all those factors which are external to the organization and are not under its control. The external environment brings opportunities or threats to the business. It includes factors like customers, suppliers, competitors, society, technology, economic, political, and cultural environment.Proper understanding of the business environment helps in framing better strategies as per business opportunities and enhances the overall performance.
Scope of Business Environment is explained in points given below:
• Identifies Business Opportunities and Threats
• Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation
• Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation• Provides Useful Resources
- • Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation• Provides Useful ResourcesImproves Performance
- • Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation• Provides Useful ResourcesImproves PerformanceHelps in Coping with Rapid Changes
- • Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation• Provides Useful ResourcesImproves PerformanceHelps in Coping with Rapid ChangesEnhances Business Image
- • Identifies Business Opportunities and Threats• Helps in Planning and Policy Formulation• Provides Useful ResourcesImproves PerformanceHelps in Coping with Rapid ChangesEnhances Business Image Assist in Facing Competition
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