What do we mean by business environment?

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Business Organisations simply mean a group of people working together as a team in a particular organisation by delivering products, goods and services to customer in exchange of profit. But, these organisation are influenced by many factors within the environment in which they operate and said to be the very dominant force in the shaping and moulding of the organisation.What do we mean by business environment? Business environment is a set of influence, which shapes and moulds an organisation. There are number of factor which shapes and moulds an organisation. In other word, the development and strength of an organisation lies on these seven main influence such as ways of doing thing, rules and regulation, principle and procedures, attitude and behaviour, product and service, framework of an authority and finally the channel of communication.

As everyone knows, different people have they own of ways of doing thing because they are not necessary to have the same thought with others and maybe it all depends on some sort of style or tradition, which need to be followed. For an example, a football team has many strategic such as 4-4-2, 4-4-3, 3-5-2 and so on. But, they use different strategic when facing different opponent or maybe changes their strategic when it comes to a certain circumstance e.g. player got sent off or injured, difficulty in defending, urgency to score, etc. No one can declare a particular method or way of doing thing of organisation is the best. This is because each given set of circumstances requires different solution. Rules and regulation is must for an organisation. Without it, everyone will not be bothered to do what he or she supposes in a proper manner within the dateline. Let us take a look at this example, which is sound familiar for some of us. Being an APIIT student, everyone strictly prohibit the wearing of T-shirt, jeans, sneakers or slippers, as well as provocative and immodest attire.

Principle and procedure are essential for an organisation. Every job or task given must be done according to a particular principle and procedure to ensure a good output or result in return. For instance, let’s take a look at a football team again. In order to score a goal, the ball must be played to one another until someone has the golden opportunity to score a goal. Attitude and behaviour play an important role for an organisation.

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Basically, there is two type of business environment, which is external and internal. What do we mean by external environment? External environment is non-controllable environment, which is outside an organisation. This environment can be divided into a number of areas such as politic, economy, social, technology –P-E-S-T- and last not the least globalisation. Political environment refers to the set of law, regulation and government policies existing within a particular country. Some people argued that this is the most powerful influence at work e.g. if a businessman wants to start up a business in a particular country, first he or she ...

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