Evolution of Business
Consideration before starting a new business
1.
Selection of
business:
2.
Detailed study
of business opportunities
3.
Personal
attitude and interest of businessman
4.
Financial
planning
5 .
Government policies and rules
6.
Form of business organization
7.
Location of business
8. Selection of human resources
Requisites of business success
1.
Determination of objectives
2.
Good management
3. Sufficient capital
4.
Modern technology
5.
Best marketing system
6.
Employee morale
7.
Facilities for research
8.
Proper location, layout & size
9.
Efficient and dynamic
Business environment
Business environment consists of components that are
surrounding of business organization that affect or influence its operation
and determine effectiveness. The environment is dynamic and changes according
to time. It is also complex and difficult to forecast. Every business
organization obtains input from the environment transforms them into output and again
supply to the environment i.e. business is made up of Internal and External
factors.
Components of the Business
environment:
The components of the business environment are as follows.
A) Internal environment:
Internal environment refers to various processes that
operate within the organization. Such environmental components are controllable
by the management. It is also referred to as a micro-environment factor. The
following are the components of the internal environment of a business.
i.
Employees
ii.
Organizational Structure
iii.
Corporate Culture
iv.
Shareholders
B) External environment:
External environment refers to those
factors that are beyond the control of management and outside the operating
system of business. However, these factors affect business quite seriously if
management is not responsive to changes. The external environment factor is
also referred as macro-environmental factors. The following are the components
of the external environment
i.
Political environment
ii.
Economic environment
iii.
Socio-cultural environment
iv.
Technological environment
v.
Legal environment
