How would you characterise business environment? Explain with examples, the difference between general and specific environment.
Features of business environment
(i) Totality of External Forces Business environment is aggregative in nature as it is the sum total of all things external to business firms.
(ii) Inter-relatedness Different elements of business environment are closely related to each other, e.g., increased awareness of health care have increased the demand for many health products.
(iii) Dynamic Nature The business environment is highly dynamic. It keeps on changing. Sometimes there is a change in technology, tastes and preference of consumer etc.
(iv) Uncertainty The environment cannot be predicted. It is highly uncertain and unpredictable.
(v) Complexity Since there are many elements of business. Environment and they are inter-related and dynamic in nature. Therefore, it becomes very difficult to understand them as a whole.
Difference between Specific and General Environment There are two types of forces operating in business environment specific and general. Specific forces affect the individual enterprises directly and immediately, e.g., customers, suppliers.
General forces affect the firms and only indirectly e.g., social conditions or political conditions.
How would you characterise business environment? Explain with examples, the difference between general and specific environment.
Identify changes in business environment under different heads – economic, social, technological, political and legal that have facilitated the companies decisions to plan significant invstments in organised retailing.
What has been the impact of these changes with regard to globalisation and privatisation?
What are the essential features of
(a) Liberalisation
(b) Privatisation
(c) Globalisation
How would you argue that the success of a business enterprise is significantly influenced by its environment?
Why it is important for business enterprises to understand their environment? Explain briefly.
What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?
Why it is important for business enterprises to understand their environment? Explain briefly.