what is the meaning of business environment and component of business environment
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Answer:
Business environment is the sum total of all factors external to the business firm and that greatly influence their functioning. It covers factors and forces like customers, competitors, suppliers, government, and the social, cultural, political, technological and legal conditions.
The term business environment means “the aggregate of all the forces, factors and institutions which are external to and beyond the control of an individual business enterprise but which exercise a significant influence on the functioning and growth of individual enterprises.” Keith Davis defines business environment
Components of Business Environment – Economic Environment, Technological Environment, Social Environment, Demographic Environment and a Few Others. The general environment of an organisation is made up of vital components such as economic, technological, social, demographic, political and legal and global forces.