Definition Of Business Environment
“The total of all things external to firms and industries which affect their organization and operation”—Bayard O. Wheeler According to Arthur M. Weimer, business environment encompasses the ‘climate’ or set of conditions, economic, social, political or institutional in which business operations are conducted.
Types Of Environment
The business environment poses threats to a firm or offers immense opportunities for potential market exploitation. The business is determined by two factors namely:
1. Micro environment or internal factor or endogenous factor.
2. Macro environment or external factor or exogenous factor.
Micro Environment
Micro environment relates to internal matters of business such as:
Macro Environment Or Business Environment Or External Environment
“The total of all things external to firms and industries which affect their organization and operation”—Bayard O. Wheeler According to Arthur M. Weimer, business environment encompasses the ‘climate’ or set of conditions, economic, social, political or institutional in which business operations are conducted.
Types Of Environment
The business environment poses threats to a firm or offers immense opportunities for potential market exploitation. The business is determined by two factors namely:
1. Micro environment or internal factor or endogenous factor.
2. Macro environment or external factor or exogenous factor.
Micro Environment
Micro environment relates to internal matters of business such as:
- Structure of business
- Size of the business
- Policy relating to business
- Product produced
Macro Environment Or Business Environment Or External Environment
- Demographic environment
- Economic environment
- Geographical and ecological environment
- Legal environment
- Technological environment
- Social environment
- Cultural environment
- Political environment