Welcome Back to our new series of business learning.
In this article we will understand Business Environment and its importance.
The elements of the business environment can be divided into the following parts:
Economic Environment: – Economic environment is a complex system of all the elements of the business environment. There are many components in it like economic conditions, economic policies, economic systems, capitalist system etc.
Social Environment: – The businessman needs social knowledge because society is the basis of business. Under social knowledge social values, social institutions, social beliefs, education, social beliefs and so on. The social environment affects someone’s business differently.
Political Environment: – The political environment also affects the business environment very much. The business has to do its actions according to the government’s perspective. Political decisions change direction of business.
Legal Environment: – Various legal policies, various statutory controls, are covered under the legal environment. There is mutual correlation between business and law. The businessman has to always work within the purview of the law.
Technical environment: – In the technological environment, new devices, mechanical improvements, system discovery, design, new development etc. are included
What is the importance of business environment?
Business environment is helpful in making all kinds of decisions.Therefore, its importance is as follows:
- Being aware of business environment helps in attaining initial opportunities.
- The study of business environment gives us information about the dangers along with available opportunities. If hazards are found in time, then the dangers can be avoided. Along with the loss can be changed in profit.
- Useful resources can be achieved from the business environment.
- The study of occupational environment plays an important role in the execution of each organization. Organizations who closely monitor this are definitely successful.
- Business environment is helpful in image creation and for any business unit, its image is basic.