BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Social Environment
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Political Environment
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External Environment
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Internal Environment
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Detailed explanation-1: -Plans & Policies: Proper plans and policies help the firm to accomplish its objectives. The higher authority must analyse the internal environment to foresee the changes and frame appropriate policies well in time. For example: the personnel policy in respect of promotion should be based on merit rather than seniority.
Detailed explanation-2: -The internal environment of business refers to all the factors or forces that have a more direct impact on the daily activities of the company. The main factors in the internal environment are: customers, suppliers, competitors, shareholders, financial institutions, and employees.
Detailed explanation-3: -External factors include political, economic, sociocultural, technological, environmental, and legal factors. These are factors that happen outside of the company but still, impact its ability to do business. Internal factors include culture changes, management changes, and employee morale.