Concept of Business Environment
Business environment refers to sum total of all individuals, institutions and forces that lie outside a business enterprise but may influence its functioning and performance.
Business environment is a combination of internal and external factors that influence a company’s operations. The business can include factors such as ; clients, suppliers; its competition and owners; improvements in technology; Government laws and activities; and market, social and economic trends etc.
Importance of Business Environment:
- First Mover Advantage:
- Early Warning Signal
- Customer Focus:
- Strategy Formulation:
- Coping with Change:
- Public Image:
- Continuous Learning