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Characteristics Of Business Environment

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2.2.1 Introduction

The literal meaning of the word ‘environment’ is the surroundings, external objects, influences or the physical conditions that someone or something exits in. The environment of any organisation means ‘the aggregate of all situations, events and influences that surround and affect it’. The environment has a tremendous impact on an organization in numerous ways; therefore, understanding the concept of environment is very essential.

2.2.2 Characteristics of Environment
The concept of Business Environment can be understood by looking at some of the important and obvious characteristics.
1. Environment is a complex phenomenon: The environment is constituted by many factors, events, conditions and influences arising from …show more content…

The external environment is comprised of all the factors outside the organisation which give opportunities or create threats for the organisation. The internal environment consists of all the factors within an organisation which impart strengths or cause weakness of a strategic nature. Therefore, we can understand the environment where an organisation exists in terms of opportunities and threats operating in the external environment and the strengths and weaknesses existing in the internal environment. Let us look at these four influences that affect …show more content…

It is estimated that by 2025, the size of the Indian economy would be around 60 per cent of the size of the U.S. economy. Within 10 years, India will surpass Japan and become the third major economic power. Also, the Indian economy will outshine that of the European Union in terms of growth. But, Indian economy faces major challenges such as increasing economic disparities, monsoon-dependent agricultural sector, inappropriate socio-economic re¬forms, institutional and infrastructure bottlenecks and an unstable stock market. Among the many disparities, economic disparity is the toughest challenge. Bihar, Madhya Pradesh, Rajasthan, Uttar Pradesh and Orissa are the main states affected by large-scale extreme poverty. Also, larger populations in these states that are increasing faster are a challenge that Indian economy face. A developed status cannot be attained if a major part of India’s population is in poverty. The corporate sector should be involved in various ways to handle this significant economic

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