write the name of any four factor of business environment?
Answers
Factors of Business Environment and its Influence
Business Environment is not concerned with a single factor. It comprises of several factors and each factor influences the business firm in its own way. Some factors influence the performance of the firm directly while the influence of some other factors is only indirect. These factors provide opportunities, threats and challenges to the firm. Thus, environment is multi-dimensional and very complex in nature. At the same time, each factor should be studied individually.
Geographical and Ecological or Natural Factors.
Demographic Factors.
Economic Factors.
Political and Legal Factors.
Social and Cultural Factors.
Physical and Technological Factors.
1. Geographical and Ecological or Natural Factors
Geographical conditions exert influence on the decisions as to the type of industries and business to be carried on in a region. This is because the people of a particular geographical region will have similar tastes, preferences and requirements.
Generally, goods, which are largely preferred by people in one region, may not be liked in another region. For instance, tastes, likes etc. as to consumption of goods in the people of South India may not be similar to that of in North India. Even in South India, people in different states may not have similar tastes, likes etc.
The geographical situation, the physical feature, the climate, rainfall, humidity, the vegetation etc. decide the type of living in a particular region. Hence those industries, which could cater to the needs of the people, could develop.
In India, cotton textile industries are located in Mumbai and Coimbatore regions due to favorable climate. Jute industry is located at Kolkatta due to the favorable geographical and climatic conditions to grow the raw material. The particular type of industry develops, only where its raw materials are available.
Ecological factors consist of natural resources like farmland, fisheries, forests, minerals like coal, metals, oils etc., energy, air and water. The supply of the resources is very much limited. A decade ago, we were all under an impression that natural resources like air and water are not exhaustible and their supply is unlimited. But now the situation is changed and we came to know that such resources are also very much limited in supply.