DIMENSION OF BUSINESS ENVIRONMENT

Dimension of business environment means types of business environment. We know that business is the  combination of internal  as well external forces. Internal forces consist of rules, regulation ,policies of a business . And external forces consist of those elements which are outside the control of business these are social,economical, technological, policies of a business.And external forces consist of  those elements which are outside the control of business these are social,economical, technological, political and  legal.

So, all these together are said as dimensions of business environment.

1.Economic Environment  Those changes which effects the working of a business economically is known as economic environment . This includes interest rates change in disposable income of consumers, value of rupee etc.

2. Social environment  Those changes which effects the working of a business socially then it is known as social forces like customs and traditions, values, social trends.

3. Technological environment  Those changes which effects the working of  a business technically is known as technological environment. This includes recent technological advancement,new and improved methods etc.

         A business must consider technological environments as these changes may effect the business nagetivelly if  not considered. Any kind is must for a business to adopt otherwise that business may going to purchase the outdated products.

4. Political environment Those changes which effects  the working of  a business politically is known as political environment. This includes political conditions like stability of elected government, attitude of the country etc.

    It is very important for the business to consider the political conditions as the  political changes are going to effect the business.

5. Legal environment  Those changes which effects the working of a business legally is known as legal environment. This includes laws designed by centre, state or local government . Every business needs to follow those legal laws to remain in the market and save themself from legal penalities. So, every business should be aware about the rules, regulations , policies formed by the government. There are different acts are formed for the business organization like Trade union Act 1926, Consumer protection Act 1986 So, a business needs to follow these laws.