Introduction and Importance of Business Environment Class XII Business Studies

Today we will be taking up the chapter of management and business environment. In this chapter we will discuss on Introduction and Importance of Business Environment Class XII Business Studies. We all know what business is right and we also know what are the basic ingredients that one requires to start off with a business. You need capital you need manpower you need raw material right man material resources.

Introduction and Importance of Business Environment Class XII Business Studies

A sub J Y now where does the business get all these resources from the environment business capacity bazookas new-school labor Lonnie – from the society fine. If we need natural resources to be used to manufacturing a particular product for that also we have to depend upon nature that is a society. We need to sell our product kiss kvetching into the customers. So basically all the individuals, institutions and other forces you know which are beyond the control of the business but yet business depends up on them for its successful existence. All these individuals, institutions, organizations and the forces find they together constitute the business environment.

So business environment is the sum total of all individuals, institutions and other forms and other forces that are beyond the control of the business. But yet they may affect its performance all these forces put together. As we know that business environment is something that is very dynamic meaning. It keeps on changing very fast fine nothing is static customers. Example in a yoga room right today I like you know may be touch screen phones tomorrow I may like something key just making them very voice come on Lily.

So consumers taste preferences their expectations from the product they keep on changing at a very fast pace and if you want to continue you know to be there in the market successfully. You have to keep changing your plans or you have to keep taking moderation in your plans according to the changing environment.

You have certain specific forces like your customers your suppliers and competitors investors etc and you have certain general forces also when we talk about general forces, we talk about technology, we talk about economic conditions, we talk about the legal framework of the country where you are operating and all these factors they are interrelated.

Any one particular factor cannot be taken in isolation. What is the kind of government that is in force in your country will have a direct bearing on the kind of the economic policies that it frames. So two are two different components but then yet they are interrelated. Then dynamic business environment. I have already told you something very dynamic in nature it keeps on changing very soon it keeps on changing at a very fast pace. So you have to keep up with the pace of the changes in the environment by scanning.

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