Importance Of Business Environment

Business environment:

The term Business environment consist of all those factors that which have a relevance on the business, such as the strengths, weakness, internal powers, relations and orientation of the organization, government policies and regulations, nature of the economy and economic conditions, socio culture factors, demographic trends, natural factors and global and cross border developments.

In an organisation their we have some mission, vision, objectives and goals to achieve them. Business environment has relevance on the shaping of all these internal elements. External environment broadly has two components, i.e., business opportunities and threats to business. Business decisions are based on two broad set of factors, i.e,

Under the multi-party system, the party which gets a relative majority forms the Government with the support of some other political parties. Others which do not get majority form the Opposition. The strength of the Opposition very often depends on whether or not the Opposition parties are united or divided. They may be differences between parties but the Opposition must act as a whole, and the parties must rise above their differences and should judge every move of the ruling party.

In India there are a number of opposition parties. The effective working of opposition in democracy is very crucial. The opposition strengthens the growth of the county and slows down its growth by untimely agitations. For example, the violent agitations in Gujarat, Bihar, Assam and Punjab resulted in great loss of life and propensity and failed entirely to gain their objectives which affect the working of business entities.

d) Role and responsibility

In a democratic country, different parties may be voted in or out of the Government as and when elections are occurred. Even if the same party rules, there is no guarantee that the same person will hold charge of a Ministry. Ministers change from time to time, but Government administration must continue without any gap. This is where the bureaucracy comes in. bureaucracy is the permanent machinery of the Government, it is meant to keep the flow in Government operations in relation to both business and non-business sectors. In a system where the Government controls and regulates the business largely, the bureaucracy is very powerful in applying Government rules and regulations, systems and procedures, licenses and restrictions. So the Businessmen, should, tend to make the bureaucracy in a number of ways. Role of bureaucracy in a country like India which is a developing country are:

1) Policy Formulation-

Formulation of Policy is the important function of political leaders or members. But the executives also have to play a important role in it. They advise the ministers in policy formulation. Political leaders or members being non-professionals cannot understand the technical complexities of laws and policies and hence depend upon the expert advice of professional civil