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What is Business Environment?

The sum of all the environmental factors that affect a business is a business environment. For example, safety regulation is an external factor that has an effect on the internal environment of the business. In your educational career students who are perusing business environment probably need to study a variety of business environment assignments that requires in-depth research and excellent assignment writing skills.

The Principal Subdivision Of Business Environment-

The study of all the environmental factors is essential for the study of the business environment. Business environment can be classified into two main sections:

  • Internal environment
  • External environment

1. Internal Environment- The factors which are present in the business and affects its performance are known as internal environment. To meet the requirements of the customers, the managers analyze the production of an organization and industry. Few of the internal environment factors are listed below:

Policies of business Production capacity Participation in management
Objectives of business Managerial attitude Composition of Board of Directors
Management Information System Production methods Organizational structure

2. External Environment- The elements outside the company that determines any business is included in the external environment. Some external factors necessitate the administration to make modifications. Some external environmental factors are listed below:

Public Political factors Customers
Competitors Suppliers Technological factors
Marketing Intermediaries Social factors


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