Definitions [2]
Definition: Business Environment
- Bayard O. Wheeler: “The total of all things external to a firm and industries that affect its organization and operations is called the Business Environment.”
- William F. Glueck: “Business Environment is the process by which strategists monitor economic, governmental, market, supplier, technological, geographic, and social settings to determine opportunities and threats to the firm.”
- Barry M. Richman & Melvyn Copen: “Environmental factors or constraints are largely, if not entirely, external and beyond the control of individual enterprises.”
Definition:Tax
A tax is money that people and businesses must pay to the government. The government uses this money to pay for things like schools, hospitals, roads, defense, and other public services.
Key Points
Key Points: Concept of Business Environment
- Business environment = all internal and external factors affecting a business.
- External factors are largely beyond the control of individual firms.
- It includes specific forces (affecting one firm) and general forces (affecting all firms).
- Key features: dynamic, complex, uncertain, inter-related, and relative in nature.
- Different businesses are affected differently by the same environmental change.
- Monitoring the environment helps identify both opportunities and threats.
- Examples of environmental factors: tax changes, technology, competition, and consumer fashions.
