What are the characteristics of business environment?
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Business environment refers to all those factors that affect the working of the business internally as well as externally..
Characterstics of business environment are..
1// flexible - - Most important feature of business environment is flexible because it is changing every time.
2/ Uncertainty - - Business environment is uncertain as it comes change any time and makes some changes in business... Future is also uncertain..
3/ Factors - - Business environment has many internal as we as external factors that affect its working. Internal factors include policy, rules regulations etc.. External include social, economic, political environment etc..
Characterstics of business environment are..
1// flexible - - Most important feature of business environment is flexible because it is changing every time.
2/ Uncertainty - - Business environment is uncertain as it comes change any time and makes some changes in business... Future is also uncertain..
3/ Factors - - Business environment has many internal as we as external factors that affect its working. Internal factors include policy, rules regulations etc.. External include social, economic, political environment etc..
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Totality of External Forces:
Business environment is the sum totals of all those factors/forces which are available outside the business and over which the business has no control. It is the group of many such forces that is why, its nature is of totality.
(2) Specific and General Forces:
The forces present outside the business can be divided into two parts – specific and general.
(i) Specific:These forces affect the firms of an industry separately, e.g., customers, suppliers, competitive firms, investors, etc.
(ii) General:
These forces affect all the firms of an industry equally, e.g., social, political, legal and technical situations.
(3) Interrelatedness:
The different factors of business environment are co-related. For example, let us suppose that there is a change in the import-export policy with the coming of a new government.
In this case, the coming of new government to power and change in the import-export policy are political and economic changes respectively. Thus, a change in one factor affects the other factor.
(4) Dynamic Nature:
As is clear that environment is a mixture of many factors and changes in some or the other factors continue to take place. Therefore, it is said that business environment is dynamic.
(5) Uncertainty:
Nothing can be said with any amount of certainty about the factors of the business environment because they continue to change quickly. The professional people who determine the business strategy take into consideration the likely changes beforehand.
But this is a risky job. For example, technical changes are very rapid. Nobody can anticipate the possibility of these swift technical changes. Anything can happen, anytime. The same is the situation of fashion.
Business environment is the sum totals of all those factors/forces which are available outside the business and over which the business has no control. It is the group of many such forces that is why, its nature is of totality.
(2) Specific and General Forces:
The forces present outside the business can be divided into two parts – specific and general.
(i) Specific:These forces affect the firms of an industry separately, e.g., customers, suppliers, competitive firms, investors, etc.
(ii) General:
These forces affect all the firms of an industry equally, e.g., social, political, legal and technical situations.
(3) Interrelatedness:
The different factors of business environment are co-related. For example, let us suppose that there is a change in the import-export policy with the coming of a new government.
In this case, the coming of new government to power and change in the import-export policy are political and economic changes respectively. Thus, a change in one factor affects the other factor.
(4) Dynamic Nature:
As is clear that environment is a mixture of many factors and changes in some or the other factors continue to take place. Therefore, it is said that business environment is dynamic.
(5) Uncertainty:
Nothing can be said with any amount of certainty about the factors of the business environment because they continue to change quickly. The professional people who determine the business strategy take into consideration the likely changes beforehand.
But this is a risky job. For example, technical changes are very rapid. Nobody can anticipate the possibility of these swift technical changes. Anything can happen, anytime. The same is the situation of fashion.
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