study material for Management Students.

1. BBA- 205
BUSINESS ENVIRONMENT
UNIT 1
Dr. KANCHAN KUMARI
PROFESSOR: MANAGEMENT & INTERNATIONAL BUSINESS

2. Concept of Business Environment
• Business Environment is sum or collection of all internal and external
factors such as employees, customers needs and expectations, supply
and demand, management, clients, suppliers, owners, activities by
government, innovation in technology, social trends, market trends,
economic changes, etc.
• These factors affect the function of the company and how a company
works directly or indirectly. Sum of these factors influences the
companies or business organizations environment and situation.

3. Significance of Business Environment
• The environment provides numerous opportunities, and it is
necessary to identify the opportunities to improve the performance
of a business. Early identification gives an opportunity to an
enterprise be the first to identify opportunity instead of losing them
to competitors.

4. Definitions……..
• Business Environment is the aggregate of all conditions, event and
influences that surrounds and effect it. By Keith Devis
• Business Environment is a climate or set of conditions economic,
social, political or institutional in which business operations
conducted. By Arther

5. Importance of business environment
• Provides numerous opportunities,
• It is necessary to identify the opportunities to
• Improve the performance of a business.
• Early identification gives an opportunity to an enterprise be the first
to identify opportunity instead of losing them to competitors.

6. Components of Business environment
• The 5 components of a business environment are:
• Economical environment.
• Political environment.
• Social environment.
• Technological environment.
• Legal environment.
•

7. Factor affecting Business Environment
• Age
• Gender, race
• educational level
• religion
• marital status
• Income
• All play a major role in business decisions and processes. Social
factors such as where you live personal values and socioeconomic
status affect where and why people make purchases.

8. Social Responsibilities of Business
• Social responsibility in business, also known as corporate social
responsibility (CSR),
• people and organizations behaving and conducting business
ethically and with sensitivity towards social
• cultural,
• economic
• environmental issues.

9. Social Responsibilities of Business

10. THANK YOU
• Dr. Kanchan Kumari