Business Management

Business Environment

All those external and internal factors that are highly important for its survival and affect its course and function.

The factors that come into Micro environment are:

Competitors; It is essential to study the competitors of any business in any market and to keep introducing new ways to win over the loyalty of new and existing customers.

.The Business Environment for any region or country can be split into two aspects:

Internal and External.

Internal Aspects

Internal aspects are factors that are responsible for the smooth functioning of the enterprise, i.e. the workers responsible for the production, the machinery, the money and the material and, finally, the management. These are the factors within one's control and can be altered as per the requirement.

Macro Environment

Macro Environment is usually more uncontrollable than the micro environment. When a business can successfully adapt itself to the factors in the Macro environment, it can survive in that environment. They are the social, political, legal, technological, institutional and, of course, economical aspects of any society or culture.

Micro environment

Micro Environment is closer to the operation of a business. It is important to build a fine working relationship with these factors. The quality, the cost of production, and the success of the business depends on the relationship that has been developed with these factors.

The factors that come into Micro environment are:

The customers; who include all the various kinds of buyers from the wholesalers and retailers to the government, etc. The success of any business falls mainly on the satisfaction of the customers.

The factors that come into Micro environment are:

The middlemen; who work as a link between the consumers and the business.

The factors that come into Micro environment are:

The public; which includes the local media as well as the citizens or the target of the business who may or may not be the users of the product

The factors that come into Micro environment are:

The suppliers, who deliver the materials required for the production. Depending solely on one supplier could create a threat to the smooth operation of a business.

External Aspects

These are factors or conditions that cannot be controlled or sometimes might even act as a threat to the survival of the enterprise. The external environment, again, is divided into two parts: Micro and Macro.