Introduction to business environment

Business environment is combination of all the factors that influence a business activity.

Dimensions of business environment

It consists of the internal and external forces prevalent in the environment, which have a bearing on the development, performance and outcomes of a business organization. Task environment refers to the factors of immediate competitive situation of a particular organization. Forces in the task environment result from the actions of suppliers, distributors, customers and competitors.

They are closer than general environment. Business environment consists of internal and external components. Internal components : They include the factors internal to an organization such as objectives, resources, structure, culture, etc. External components: They include task environment such as customer, suppliers, competitors, etc. Environment scanning is the technique of acquiring information about environmental uncertainty, complexity and dynamism and analyzing the trends emerging in the environment.

It is a detailed study of the environment. Hence, it is also called x-ray of the environment.