Features of Business Environment

Question

Illustrate the different Features of Business Environment?

Answer 1

1. Totality of external forces: Business environment is the sum total of all the forces/factors external to a business firm.

2. Specific and General forces: Business environment includes both general and specific forces includes financiers, participants, customers etc. who influence business firm directly while general forces includes social, political, economic, legal and technological conditions which affect a business firm indirectly.

3. Inter-relatedness: All the forces/factors of a business environment are closely interrelated.

4. Dynamic: Business environment is dynamic in nature which keeps on changing with the change in knowledge, clients fashion and tastes etc.

5. Uncertainty: Business environment is uncertain as it is difficult to predict the future environmental changes and their impact.

6. Complexity: Business environment is complex which is easy to understand in parts separately but it is difficult to understand in totality.

7. Relativity: Business environment is a relative concept whose impact differ from country to country and region to region.