Question

Long Answer Type Question:
Explain with examples the various dimensions of Business environment.

Answer 1

1)Political environment;it comprises of political conditions such as peace & stability,law & order.Example,a situation of political unrest such as frequent change in the ruling government implies a change in the rules & policies of the government regarding production & manufacturing.

2)Technological environment; which comprises of technological changes & improvements.i.e introduction of computers,internet have changed the way organisation works today.

3)Legal environment;It refers to the legislation of rules passed by the government such as Companies act,trade unions act.

4)Economic environment;comprises of economic variables such as interest rates,income,stock market indices that affect the functioning of the enterprises.

5)Social environment;refers to social forces such as customs,traditions,social values & social trends.