Business Environment Lecture #1
Meaning, Features and its Importance
Meaning:- Business Environment as such is the total of all external forces which affects the organisation and its various operations.Features:- 1. Totality of External Factors:-Business Environment includes all external factors such as political, economical, legal and technical factors. So, it is aggregative in nature. 2. Specific and General Forces:- It also includes both specific as well as general forces of environment. Specific forces such as customer base, suppliers, investors which affects business directly & general forces such as political change or economic changes impacts business generally to all. 3. Inter Relatedness:- All those above stated forces are inter-related. These forces can’t be explained in isolation. 4. Dynamic In nature:-Business environment is dynamic in nature. It keeps on changing eg. Technological or political change. 5. Uncertainty:- Business Environment are uncertain in nature. It is difficult to predict the changes accurately. 6. Complexity:- Business environment is difficult to understand due to its complex nature.
Importance:- 1. Environment provides Opportunity:- After the thorough understanding of environment , it provides the various opportunity for businesses. 2. Threats and Warnings:- It provides the early warning signals about various future threats. 3. Helps in successful Implementation of planning :- Proper Implementation of planning can be easily done after analysing the environment factors. 4. Creates Dynamic Environment:- It helps to create the dynamic environment in an organisation which further helps the organisation to cope up with the rapid changes into the organisation. 5. Provides useful Insights about the organisation :- It helps to provide the useful information about the internal matters of the organisation. 6. Tapping useful resources:- Those resources which can’t be tap by someone, can easily be found after the proper analysis of environment. 7. Improves work Performance:- It helps to improve the work performance into the organisation after the scanning of various aspects of businesses on regular basis. Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos - www.youtube.com/tarunanejaclasses
