2. Introduction
⢠Economic & social activity
⢠Provides Goods n services to society
⢠Earlier profit oriented then converted to
Customer oriented and now Societal Oriented
⢠Basis of need satisfaction
⢠Narrow in terms of environment hence has to
adapt to changing environment
3. Definition of business
⢠The activity of buying and selling goods,
manufacturing goods or providing services in
order to make profit. â
⢠Business is an institution organized and
operated to provide goods and services to
society under the incentives of private gainâ-
Wheeler B .O
4. Features /characteristic of
business
⢠Buying selling activity
⢠Continuous in nature
⢠Deals with goods and services
⢠Activity for private gain
⢠Risk & uncertainty involved
⢠Supports Society
⢠Creativity & innovation
⢠Takes from the society
⢠Employment generation
5. Function / needs of business
⢠Regular supply Goods & Services
⢠Satisfaction Of Need & wants
⢠Optimum use of natural resources
⢠Better standard of living
⢠Must for growth of economy
⢠Revenue to govt
⢠Employment generation
7. What is business environment?
⢠Business environment is âthe total of all things
external to firms and individuals, which affect
their organization and operationsâ
â B.O Wheeler
⢠Business environment â Consist of all external
and internal factors that influence the complex
interaction of the market, production and
finance, the three basic components of our
business world.â â Joseph A Kriz & Curtiz J
Duggan
8. Characteristics/ Features of business
environment
⢠Broadly divided in two component
⢠Surrounding Situation
⢠Complex & dynamic in nature
⢠Multi-faceted
⢠Study involved-as varied aspect
⢠Influences business activity
⢠Must be adaptable
⢠Creates framework for planning
⢠Challenging & opportunity oriented
⢠Direct & lasting effect
⢠Business is inseparable
9. Significance / importance/ need of
study of business environment
⢠Recognize opportunity & threat
⢠Ensures optimum use of resources
⢠Accuracy in decision making
⢠Helps adapt to changing dynamics
⢠Stability, growth, survival
⢠Makes business socially acceptable
⢠Study level of competition