Dimensions of Business Environment
Dimensions of business environment class 12: The dimensions or factors of the business environment include economic, social, technological, political, and legal conditions that are considered relevant to decision making and improving the performance of the enterprise. Unlike the typical environment, these factors explain the general environment which mostly affects multiple enterprises at the same time. However, the management of each enterprise can benefit from being aware rather than being indifferent to these dimensions
Senior managers in the lighting divisions of General Electric and Philips recognized that the finding has the potential to significantly impact their unit’s growth and profitability, so they carefully followed the progress of this research and used its findings profitably. Is. The various factors that make up the general environment of business are briefly discussed below:
proved over time.
Railway Catering and Tourism M Corporation Limited.
(A Government of India Enterprise)
Railway Ticket Booking on this Website A Guide
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* Due to technological advancement, booking has become possible
Train ticket through internet from home, office, etc…
Legal environment: The legal environment includes various laws issued by government officials, administrative orders issued by government officials, court decisions as well as decisions made by various commissions and agencies at every level of government, central, state, or local. Huh. Following the law of the land is essential for the management of every enterprise. Therefore, adequate knowledge of the rules and regulations framed by the government is a prerequisite for better business performance. Non-compliance with laws can land the business enterprise in legal problems. In India, working knowledge of the Companies Act 2013; Industries (Development and Regulation) Act 1951; forex management
interest rates, inflation rate, change in disposable income of people, stock market index
and rupee value is some of the economic factors that can affect management practices in a business enterprise. Short and long-term interest rates significantly affect the demand for products and services. For example, in the case of construction companies and automobile manufacturers, lower long-term rates are advantageous because they increase spending by consumers to buy homes and cars on borrowed money. Similarly, an increase in the disposable income of the people due to an increase in the GDP of a country creates an increased demand for the products. High inflation rates are usually the result of constraints on business enterprises as they grow.
components of the economic environment
*The current structure of the economy in terms of the relative role of the private and public sectors.
* Growth rate of GNP and per capita income at current and constant prices
*Savings and Investment Rates
*Changes in Balance of Payments and Foreign Exchange Reserves
*Trends in agricultural and industrial production
*Expansion of transport and communication facilities
* Money supply in the economy
*Public Debt (Internal and External)
*Planned outlay in private and public sectors
The technological environment includes forces related to scientific improvements and innovations that provide new ways of producing goods and services and new ways and techniques of conducting business. For example, recent advances in technology, computers, and electronics have modified how companies advertise their products. Computerized information kiosks and World Wide Web multimedia pages highlighting the properties of products are now common. Similarly, retailers have a direct relationship with suppliers who replenish stocks when needed. Manufacturers have flexible manufacturing systems. Airline companies have Internet and World Wide Web pages where customers can search for flight times, destinations, and fares and book their tickets online. In addition, continuous innovations in various scientific and engineering fields such as lasers, robotics, biotechnology, food preservatives, medicine, telecommunications, and synthetic fuels have provided many opportunities and threats to many different enterprises. Changes in demand from vacuum tubes to transistors, steam engines to diesel and electric engines, fountain pens to ballpoints, propellers from airplanes to jets, and word processors to demand, are all responsible and creating new computer-based business writers
Stability and peace in the country and the distinctive attitude that the elected government representatives have towards business. The importance of political conditions in business success lies in the predictability of business activities under stable political conditions.
interest is. On the other hand, there may be uncertainty in business activities due to political unrest and threat to law and order. Thus, political stability creates confidence among businessmen to invest in long-term projects for the development of the economy. Political instability can shake that belief. Similarly, the attitude of government officials towards business can have a positive or negative impact on business. For example, even after our economy opened up in 1991, foreign companies found it extremely difficult to cut bureaucratic red tape to obtain permits to do business in India. Sometimes, it used to take months to process their application for this purpose.