What is the nature and scope of business environment ?
Answers
here is ur answer
A business can be established, but to successfully sustain a business, the business needs resources like finance, for which it has to depend on financial institutions. Acceptance of social norms, for which it has to depend on society. Proper market conditions, for which it has to depend on the market. The sale of products/services, for which it has to depend on the customers. The labour, for which it has to depend on society.
Then there are natural resources and raw material, for which it has to depend on Nature. Also, the legal support of the government, for which it has to depend on the government. There are many factors and dimensions that affect Business Environment. These factors are many different components of a single concept called Business Environment.
These factors which business depends upon aren’t standstill, they are very dynamic and ever-changing. For example, trends, the trend of fidget spinners gave the biggest big push the silicone mold industry has ever received.
The changing needs of customers and new innovations in the market are a part of the business environment. The challenge for businesses in this technological era is not to enter the market but to survive in the market. To survive in the market means to adapt to the changes as fast as possible. To adapt to the changes means to be aware of the business environment.
Hopeit's help you!
Be Brainly!
Nature and scope of business environment are as follows :-
As the business is always changing and uncertain . Business environment encompasses all those factors that affect a management of a company and its operations which includes its important elements customers, suppliers, competitors, stakeholders.
Nature of business environment are:-
Dynamic – business has to be dynamic to cope up with the changing and competitive environment.
Impact –The impact of business factors helps in analyzing the position of the business and forecasting the changes to be made to attain stability .
Strategies and policies- The strategies and policies are the approach incorporated in the business to attain success in the competitive market situation . It can be said as the detailed knowledge of the business environment can help the organisation to design its strategies and policies for long-term .
*Nature of business environment are :-
Environment and business have the same identity – Environment is the most essential factor in a business . There is a mutual relationship between environment and business . So it can be said as the success and failure of a business is influenced by the changes in the environment .
Internal and External factors-The factors such as business objectives , policies , framework , employees , etc ., combine to form the internal environment . The external environment involves the legal, competitors, cultural , technological basis .
Going concern concept – The business can be affected by the duration of the business . This can bring long lasting impact on a business .Therefore , strategies are so formed which can avoid risks and threats of the environment .