Business and the Business Environment

Business and the business
environment

Introduction
• Business environment is the sum or collection of works and activities related
with the internal and external factors consisted of employees, customers needs
and wants, supply and demand factors and management.
• For an organization it is very essential to access the environment in order to build
objectives and strategies to remain competitive in market.

PESTEL MODEL
• Political factor: This factors will include elements like government policy, tax
policy, political stability, foreign trade policy, labor law and many more.
Economic factor: Respective factors will consider several different economical
factors such as exchange rate, unemployment rate, economic growth, inflation
rate and so on.

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• Social factor: This will include factors like population growth rate, age
distribution, safety emphasis, health conscious, career attitude etc..
• Technological factor: Respective factor will consider several elements
such as technology incentives, level of innovation, R&D activities,
technology awareness, automation and so on.