Business Environment In Business

1900 Words8 Pages
Success of a business depends on resources and the environment of the organisation where it is located. So business begins, multiplies, or flourishes and ends in its environment. It exchanges resources with the environment. A business organisation collects inputs like man, money, materials, and machines, and provides output like goods and services in the environment and society. Environment means surrounding. Business environment is defined as a force that affects the performance of the organisation. And includes internal and external factors of the organisation. It provides both opportunities and threats as well as strength and weaknesses. So understanding of the environment is required for policy formulation and strategy formulation and…show more content…
Similarly, the share price of a company can increase if the media gives a favourable report about its performance. (v) Marketing Intermediaries:They play a significant role in the development of any business unit. The distance between the producers and agents reduces due to marketing intermediaries. (vi)Shareholders: Everywhere management deals with shareholders. Normally shareholders have the right of ownership, power of control and voting right also. Organization is guided and directed by elected representative of shareholders jointly known as board of directors. Actually boards of directors have the responsibility of overseeing the management of organization and ensuring they are doing right job. They play a major role in formation of vision, mission, objectives, policies, and strategies of the organization as well as their implementation. Example: When a company sells its products with the help of agents due to some reason if all the agents get upset with that company and refuse to sell its products, then there can be a crisis for the company. 2. Macro…show more content…
The businessmen have to make changes in their organisations according to the changing factor of political environment. Example: In the year 1977 when a particular political party came to power they made the policy of sending back all the foreign companies. This resulted in the Coca Cola Company to close its business and leave the country. The common factors and forces which have influenced the Indian political environment are: a) The government in Hyderabad is taking keen interest in boosting I.T. industry, as a result the state is more commonly known as Cyber bad instead of Hyderabad. b) After the economic policy of liberalisation and globalisation, the foreign companies got easy entry in India. As a result the Coca Cola which was sent back in 1977 came to India again. Coca Cola, Pepsi Cola and many other foreign companies are establishing their business in India. Some Aspects of Political Environment: 1. The existing political system 2. The constitution of a country 3. The profile of political
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