explain the dimention of business environment
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Answer:
There are 5 dimensions to business environment. These are economic, social, legal, political and technological. ... The social environment of business include the social forces like customs and traditions, values, social trends and societys expectations from business.
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Answer:
5 Important Dimensions of Business Environment
(1) Economic Environment
Among the various factors of macro environment, the economic environment has a special significance. Economic environment can be divided into three parts. We shall now study their effect on business.
(2) Political Environment
Political environment is the outcome of a combination of various ideologies advocated by different political parties.
Factors connected with the activities of the government are included in it, e.g., the type of government (single-party government or multi-party government), the attitude of the government towards different industries, progress in passing different laws.
The platforms of the political parties, the tendency of the applicants for different posts, efforts by various groups to get effective support for themselves, etc. Every political party has a different attitude towards business community.
A living example of this can be seen during elections in the shape of fluctuations in the share market. It is quite possible that the mere possibility of a particular political party coming into power can make the prices of share rise sky high. It is true conversely when the possibility of some other political party coming into power may bring the price of shares really nose-diving.
It clearly shows that the attitude of the first political party towards business is positive which gets reflected in the positive effect on the share market. On the other hand, the negative attitude of the second political party towards business is reflected in the nose-diving of prices of shares in the share market merely on the possibility of its coming to power.
(3) Social Environment
Business originates and develops in society. Therefore, the effect of various social factors on business is but natural.
Social factors include customs, fashions, traditions, wishes, hopes, level of education, population, standard of living of the people, religious values, distribution of income, corruption, family set-up, consumers’ consciousness, etc.
(4) Legal Regulatory Environment
Many Acts are passed from time to time in order to control and regulate business activities.
The sum total of all these Acts creates legal regulatory environment. Acts are mossy passed to regulate such business activities as sale-purchase, industrial disputes, labour, regulating partnership business, regulating company business, foreign exchange, etc.
(5) Technological Environment
Technological environment includes the discovery of new methods and implements for the production of goods and services. Technological changes make available better methods of production and that makes the optimum use of the raw material possible.
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