BUSINESS ENVIRONMENT

Business Environment

Business Environment

Introduction

Business environment comprises of two words, business and environment. The term Business refers to such organization that is engaged in the industrial, professional and commercial activities. Environment talks about the surrounding around every object. Accordingly, business environment is defined as a group of social, political, economical and legal conditions which could affect the overall operations and their functioning of the organization (Cherunilam, 2010). There are several organizations around the world, which are formed for different purposes. These organizations consist of different people working together to achieve the desired purpose. They deal in a business environment, which consists of several competitors competing to maintain their position in the market. Businesses provide customers with different products and services, which help in satisfying their needs. The demands and needs of customers are changing with the passage of time (Daniels, 2004, pp.45.48). These days it is known as the era of technology, which is helping human life in many ways. It has enhanced the lifestyle of people, and has helped them in getting their work done easily, efficiently and quickly. Similarly, different businesses are taking advantage of technology for making their business efficient. There lie two of the basic components of business environment (Brooks, 2004, pp.67-72).

The Internal Environment; these involve those factors within the overall organization that are in control of the organization. The business has this potential and environment which brings in change in the internal processes and functioning of the business. Since there are many organizations that changes their internal environment for maintaining balance within the organization. This change is important and healthy for bringing positive and efficient production within the organization.

The External Environment; this involves those factors which are beyond organizational control; however, these involve the socio- economic factors, legal, governmental and political factors, etc. All these factors have got crucial importance in workplace. Mostly, the external environment factors provide a scope to organization in making its path smooth, facing the environmental complexities. These have got much significance for the business operations that are mainly running in the external environment.

Therefore, it is very important for the organization to perform its business operations keeping in view the internal and external business surroundings and understand the environment for continuing a successful business in accordance to the prevailing environment (Steiner, 1994, pp.78-83).

There are a lot of external factors involved which present an obstacle for many Organizations. Each factor needs to be given adequate importance. The failure of any Organization attributes to its ignorance of external factors and not tackling with them in an appropriate manner. Similarly, Organizations who understand the significance of External Factors and have appropriate mechanisms in place are bound to succeed (Worthington, 2005, pp.52-56).

There are diverse external factors involved in each story. The four different stories present different nature of External Factors. But, each factor poses a big threat to the Organization (Steiner, 1994, pp.78-83).

This study is mainly about the business environment of particular organization and the comparison of some other business environments ...