The document discusses the business environment, which refers to the set of internal and external factors that influence a business's operations and determine opportunities and threats. It notes that the business environment is the sum of all internal and external influences, is dynamic in nature, and differs between locations. Understanding the business environment through environmental scanning and monitoring is important for identifying strengths and weaknesses, pursuing opportunities, and meeting competition. The key internal factors are resources and capabilities, while external factors include suppliers, consumers, competitors, and macroeconomic and sociocultural trends.

1. BUSINESS
ENVIRONMENT

2. BUSINESS
 Complex field of commerce and industry
in which goods and services are created
and distributed with a profit motive within
a framework of laws and regulations.
 Characteristics
◦ Dealings in goods and services
◦ Production/exchange
◦ Creation of form, place and time utility
◦ Continuity in dealings
◦ Profit motive

3. BUSINESS ENVIRONMENT
 Refers to a set of internal and external
factors which have a bearing on the
functioning of the firm and determines
opportunities and threats to the firms.
 very important to analyze business
environment to survive and to get
success for a business in its industry

4. FEATURES
 Sum total of all internal and external
factors
 Dynamic in nature
 Unpredictable
 Differs from place to place

5. SIGNIFICANCE
 Determining Opportunities and
Threats
 Giving Direction for Growth
 Continuous Learning
 Image Building
 Meeting Competition
 Identifying Firm’s Strength and
Weakness

6. ELEMENTS OF ENVIRONMENT
Internal elements
External elements

7. INTERNAL FACTORS
 Human resources & internal
relationships
 Company image
 Management structure
 Physical assets
 R & D and technological capabilities
 Marketing resources
 Financial factors

8. EXTERNAL FACTORS
 Micro environmental
◦ Suppliers
◦ Consumers
◦ Competitors
◦ Middlemen
◦ Public

9.  Macro environmental
◦ Demographic factors
◦ Economic factors
◦ Technological factors
◦ Political/legal factors
◦ Socio-cultural factors

10. CHANGING DIMENSIONS

11. ENVIRONMENTAL SCANNING
 Defined as the study and
interpretation of the political,
economic, social and technological
events and trends which influence a
business, an industry or even a total
market.
 Factors need to be considered
◦ Events
◦ Trends
◦ Issues
◦ Expectations

12. MONITORING
 describes the processes and activities
that need to take place to characterize
and monitor the quality of the
environment
 Used in the preparation of
environment impact assessments
 Determines the current status of the
environment

13. ECONOMIC
ENVIRONMENT IN
BUSINESS

14. ECONOMIC PLANNING IN
INDIA

15. INDUSTRIAL POLICY

16. FISCAL POLICY

17. MONETARY POLICY

18. EXPORT AND IMPORT POLICY

19. PUBLIC SECTOR AND
ECONOMIC DEVELOPMENT

20. ECONOMIC REFORMS

21. LIBERALIZATION AND
STRUCTURAL ADJUSTMENT
PROGRAMMES