The firm and its environment

refers to the factors/elements within the

organization which may affect, either positively or negatively, the performance of the

organization

• External business environment

• Internal Business environment

• Macro environment

• Micro environment

refers to the factors/elements outside the

organization which may affect, either positively or negatively, the performance of the

organization.

• external business environment

• internal business environment

• Macro environment

• Micro environment

means seeking for and sorting through data about

the environment

• environmental scanning

• micro environment

• macro environment

• internal environment

includes those players whose decisions and actions

have a direct impact on the company. Production and selling of commodities are the

two important aspects of modern business.

• internal business environment

• external business environment

• micro environment

• macro environment

It includes the activities of three

political institutions, namely, legislature, executive and judiciary

which usually play a useful role in shaping, directing, developing

and controlling business activities.

• Technological environment

• Political-Legal Environment

• Economic environment

• Global environment

These include people’s attitude to

work and wealth, ethical issues, role of family, marriage, religion

and education and also social responsiveness of business.

• global environment

• Political-legal environment

• ecological environment

• socio-cultural environment

is the ultimate

source of many inputs such as raw materials and energy, which

firms use in their productive activity. The natural environment which

includes geographical and ecological factors such as minerals and

oil reserves, water and forest resources, weather and climatic

conditions are all highly significant for various business activities.

• Ecological environment

• Economic Environment

• Natural Environment

• Demographic Environment

consists of

agriculture, industrial production, infrastructure, and planning, basic

economic philosophy, stages of economic development, trade

cycles, national income, per capita income, savings, money supply,

price level and population.

• economic environment

• ecological environment

• natural environment

• global/international environment

means the

ethical beliefs that guide the organization in achieving its mission

and objectives.

• Value system

• socio-cultural environment

• cultural environment

• mission and objectives

The composition of the board of directors, the professionalism of

management etc. are important factors influencing business

decisions. An efficient working of a business organization requires

that the ___________ should be conducive for quick

decision-making.

• Corporate Culture

• Organizational Structure

• Socio-cultural

• Value System