1. Define the term ‘Business Environment’. Explain the various elements of the internal environment of business. What do you understand by the task environment? A business environment can be defined as the surroundings, external factors, circumstances and all the influencing factors that affect the operations of a business. In a business environment there are two main classes of factors namely internal and external. The internal factors are considered those that the company can have control over in such as the vision. The external factors are those that the company has no control over such as government policies, cultural factors and others. Value system
The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organization, business policies and practices. Mission and vision and objectives
Vision means the ability to think about the future with imagination and wisdom.
Vision is an important factor in achieving the objectives of the organization. The mission is the medium through which the objectives are achieved Management structure and nature
The structure of the organization also influences the business decisions. The organizational structure like the composition of board of directors influences the decisions of business as they are internal factors. The structure and style of the organization may delay a decision making or some other helps in making quick decisions Internal power relationships
The relationship among the three levels of the organization also influences on the business. The mutual co-ordination among those three is an important need for a business. The relationship among the people working in the three levels of the organization should be cordial. Human resource
The human resource is the important factor for any organization as it contributes to the strength and weakness of any organization. The human resource in any.
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Category: Personal Finance