Question

name and explain briefly the different types of environments that impact any business.

Answer 1

Business environment is also the main impact on business earning. There are mostly 5 types of the environment that affect the business.... such as


➡Economic environment
➡ Social environment
➡ Political environment
➡ Legal environment
➡ Technological environment.

But mainly first two environment are affect the most...

Economic environment is related the economiy of the business. Business mostly affected with changes in economic policies. which result in most flexibility in the business.

Some measure include in this are...
Rate of GDP
Rate of GNP
Communication facilities
Transportation facilities. etc

Social environment include social factors which affected the business. earnings. Most the business impacted by this environment. It is the main component of any business environment.... Some measures for this environment are---

Quality of life
Standard of life
Consumption pattern
Birth rate
Death rate
Literacy rate

etc.



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Answer 2

Political Factors

This analysis is concerned with the kind of influence a local government might have on the business environment. Is there a new tax or duty to worry about? The fiscal policy of the government is also important as it will determine which industries receive the most government support. Other issues include any tariffs the government may impose on certain industries.

Economic Factors

This factor looks at the performance of the economy in the area in which a company operates. Is there a rise in inflation that the company should worry about when they consider future running costs of the business? Who is the competition? What models can they adapt to analyze the demand and supply? Other things to consider include interest rates, the purchasing power of the consumers and foreign exchange rates.

Social Factors

For social factors, the business analyzes aspects of the social environment such as the demographics, the population size and dominant cultural trends that might affect business strategy.

Technological Factors

Technological factors have always been important for businesses to consider, but have gained even more importance recently. They represent the prevalent technological trends in an area and how they can be either beneficial or detrimental to the success of the business. They include such things as the devices owned, the internet and cellular connectivity and any emerging trends in technology that might affect the business’s activities in the future.

Legal Factors

The business analyzes the specific laws that affect the businesses operating in that area. There are also internal policies that the company may already have adopted for itself, and they will have to be analyzed in relation to the environment they consider operating in.

Environmental Factors

Environmental factors are vital in an increasingly environmentally conscious world. The company has to determine how its practices and location will affect the surrounding environment and take mitigating measures to ensure the environment is preserved.