Business Environment Flashcards
What is Business Environment?
Sum total of all forces outside the business’s control that may affect its performance.
State all the feature of business environment.
1) External
2) Specific and General
3) Inter-related
4) Dynamic
5) Uncertain
6) Complex
7) Relativity
Explain External as feature of business environment.
It is the sum total of all the things external to the business.
Explain Specific and general as feature of business environment.
Specific forces: It affects individual enterprises directly.
General forces: It affects all firms indirectly.
Explain Inter-related as feature of business environment.
It is closely related to business success.
Explain Dynamic as feature of business environment.
It is changing in advancements and preferences.
Explain Uncertain as feature of business environment.
It is uncertain as it is difficult to predict future.
Explain Complex as feature of business environment.
It is complex as there are many inter related and dynamic elements.
Explain Relativity as feature of business environment.
it is a relative concept as it differs from region to region.
State all the importance of business environment.
1) Opportunities
2) Threats
3) Resources
4) Changes
5) Planning
6) Performance
Explain Opportunities as importance of business environment.
Helps identify opportunities which may benefit its operations.
Explain Threats as importance of business environment.
Helps identify threats which may badly affect its operations.
Explain Resources as importance of business environment.
Helps ascertain the availability of resources required.
Explain Changes as importance of business environment.
Helps in knowing changes and identify threats and opportunities.
Explain Planning as importance of business environment.
Helps in planning and policy formation according to the environment.
