Business Environment

 What do you understand by Business Environment? 

ANS:- Business environment is a mixture of complex, dynamic and uncontrollable external and internal factors within which a business is to be operated.

The market environment or business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer relationships. 

Forces or variables of the outer and inner environment of a firm that affects the marketing management’s ability to build and maintain the successful relationships with the customer. 

all of the internal and external factor that affect how the company functions including employees, customers, and management, supply and demand and business regulation.. 

From the above definition, we can clearly classify the component of business environment.

Components of the business environment are classified into the following major

CLASSIFICATION OF ENVIRONMENTAL FACTORS. 

1.On the basis of the extent of intimacy with the firm, the environmental factors may be classified into different types namely internal and external.

For details study of classification of external environment and internal environment click on the link

👉🏾INTERNAl VS

👉🏾 EXTERNAL. 

2.The business environment is categorized as Micro-environment and Macro-environment. Business activities are directly affected by micro-environment while macro-environment leaves an indirect impact on all businesses on a large-scale.

For details study on classification of internal and external environment click on the link👉 micro vs macro. 

What is Micro Environment?

ANS :-Micro-environment has a direct impact on routine business activities and associated with business at a small-scale. It consists of different forces that are specific to a particular business and are capable to influence daily operations and performance of the business for a shorter period. These forces or factors include suppliers, shareholders, customers, employees, competitors, media, etc.

For more details click on the link👇🏿

 👉🏾MICRO-ENVIRONMENT. 

2.MACRO - ENVIRONMENT

The macro-environment of an organization is related to its general and external environment that impacts the working style, decision-making process, strategy, and performance of the business. The macro-environment is a dynamic environment that has a changing tendency. It has external factors that an organization can’t control.

FOR MORE DETAILS CLICK ON THE LINK👇

  👉🏾MACRO-ENVIRONMENT. 

Major or key differences that differentiate Micro and Macro environment are mentioned as 

 link👉🏾👉🏾MICRO VS MACRO