What is a Business Environment
It is the aggregate of all conditions, events and influences that surround a firm and affect it.
The Business Environment (BENV) is COMPLEX and typically consists of factors, events, influences and conditions arising from different sources.
The BENV is also DYNAMIC that is, it is ever or constantly changing.
The BENV is also MULTIFACETED - the same trend in an environment can have different effects on different industries. For example, GATT is an opportunity for some industries and on the other hand it is a threat to some other industries.
Different types of environment exist: it is mainly classified into Internal Environment and External Environment:
The INTERNAL ENVIRONMENT refers to that of an organization and is controllable.
The EXTERNAL ENVIRONMENT surrounds the firm and can be further classified into the micro environment and the macro environment.