business environment

 Environment Surroundings or conditions in which animals, plants lives or

operates, Guidanud people,

Business

an organization or enterprising entity engaged in commercial, industrial, or professional activities.

the sum total of

  *all individuals, institutions and other forces.

          *that are outside the control of a business.

          * but that may affect its performance.

for example.

• Increase in taxes by government can make things expensive to buy.
Technological products obsolete. improvements  may render existing

• Increased competition in the market may reduce profit margins of firms.

“The environment of a business consists of all those external things to which it is exposed and by which it directly or indirectly". may pe influenced
Reinecker and Schoell.
“It encompasses the -climate' or set of conditions, economic, the-clim social, political or institutional in which business operations are conducted.
Arthur M. Weimer
• Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.

Business Environment - Importance

• It enables the firm to identify opportunities and getting the first mover advantage 

• It helps the firm to identify threats and early identify threats and warning signals Wito.

 • It helps in coping with rapid changes

• It helps in assisting in planning and policy formulation

• It helps in improving performance