Internal Environmental Factors In Business

Environment means surrounding. Business establishes grows or operates and dies in an environment. It exchanges resources in the environment. It collects inputs i.e. man money, materials, machines etc. and provides output i.e. goods and services in the environment. There are events or situations that occur and affect the way a business operates, either in a positive or a negative way and are called as an 'environmental factors. '

There are two types of environmental factors: internal environmental factors and external environmental factors. Internal environmental factors are events that occur within an organization. Generally speaking, internal environmental factors are easier to control than external environmental factors. External

Basis of Decisions: It provides all the necessary information for taking good decision. It helps in brand building, product positioning and market penetration.

Help in Making Policies: It forms the strong base for making strong policies.

Technological Planning: In today’s world technology is changing at the lighting speed, so understanding the environment can helps make better technological plans.

Survive in the Business: Only that business will survive and success who has estimated the situation like recession in advance through business environment study

1.3 WHAT IS A BUSINESS?

A commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities is known as business or is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human

All of us need food, clothing, shelter and many other household requirements to be satisfied in our daily lives. We met these requirements from the shopkeeper or departmental store. These shopkeepers and the departmental store get the products from wholesaler and wholesaler gets it from manufacturer. Thus, the shopkeeper, the wholesaler and the manufacturer are doing business.

Some more concepts:

Stephenson defines business as, “The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants.”

According to Dicksee, “Business refers to a form of activity conducted with an objective of earning profits for the benefit of those on whose behalf the activity is conducted.”

Lewis Henry defines business as, “Human activity directed towards producing or acquiring wealth through buying and selling of goods.”

Thus, the term business means continuous production and distribution of goods and services with the aim of earning profits under uncertain market conditions. It can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.

FEATURES OF BUSINESS: o Exchange of goods and services o Deals in numerous