The Business Environment and its Impact

Davis and Keith define the business environment as the aggregate of all conditions, events, and influences affecting a business. It is a multi-faceted and dynamic entity with far-reaching impacts requiring adaptability. The inter-relationship between business and its environment is vital for survival. Components of the internal and external environment play crucial roles in shaping business operations. Additionally, the educational environment in India is highlighted for its close connection with the business sector and the support it provides for human capital development. Education also influences business growth through the nurturing of professionalism.

• Business Environment
• Inter-Relationship
• Internal Environment
• External Environment
• Educational Environment

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Uploaded on Apr 05, 2024 | 9 Views

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2. Definition of Business Environment According to Davis, Keith: Environment of a business means the aggregate of all conditions, events and influences that surround and affect it. Main Features/ Nature of Business Environment:- Environment is the surrounding situation Environment is multi-faceted and dynamic It has a far reaching impact on business It needs adaptability Two broad components Environment is complex and uncertain

5. Inter- Relationship between Business and Environment Closely related concepts Business has limited capacity to influence environment Continuous interaction with environment Integrated approach to business environment is a must for survival

6. BUSINESS ENVIRONMENT EXTERNAL INTERNAL

7. COMPONENTS OF INTERNAL ENVIRONMENT Goals of the organization Value based management Corporate image Physical and Financial resources Human Resources Labour Relations R&D facilities Strong Financial Base

8. EXTERNAL ENVIRONMENT MICRO MACRO

9. Components of Micro Environment Corporate Resources Suppliers Customers Middlemen Competitors Society

10. Components of Macro Environment Political Economic Social and Cultural Technological Legal Ecological/ Natural Demographic International Ethical

11. Educational Environment Educational Environment is the economic surrounding or situation within which the education , training and manpower development activities are undertaken. It is the education system which creates human capital. Features of educational environment in India Influencing factors 2. Close connection with business 3. Business supports education 4. Position of educational environment in India 1.

12. Impact of Education on Business Growth of Professionalism in business 1. 2. Change in attitude 3. Inflow of social skills in business 4. Trained leadership in business sector 5. Creativity and innovation in business 6. Ensures optimum utilization of resources in business

13. Measures to improve standards in education Management Courses- high calibre Sponsored educational institutions Privatization and globalization in higher education Use of modern techniques Training to teachers Industry and Academics Quality education

14. Measures to improve education environment in India Expenditure to be raised Adequate opportunities Literacy rate to be increased Funds for research Quality education Autonomy Vocational education and Skill development