1. STRUCTURE OF THE ENVIRONMENT

2. BUSINESS ENVIRONMENT
Environment refers to the surroundings or
milieu in which a person or organization
operates . Business environment means the
political , social, economic, technological and
cultural forces outside a business firm with
which the entity deals.

3. THREE STRUCTURAL LEVELS
 External Environment
 Operating Environment
 Internal Environment

4. EXTERNAL ENVIRONMENT
 The components in the external environment are
broad in scope and are uncontrollable by the
management of the organization.
 It include social factors, political factors ,legal
factors, technological factors and economic factors.
 while economic factors constitute the economic
environment, the other factors are clubbed together
under the head non-economic environment.

5. OPERATING ENVIRONMENT
 The operating environment , though
they are external to the organization, will
directing interact and influence the
organization.
 These components include-
Customers, suppliers, competitors,
Employees, Government, creditors and
owners.

6. INTERNAL ENVIRONMENT
 The internal environment consists of
functional areas of an enterprise.
 These includes- production , personnel,
finance and marketing.