Business Environment

BUSINESS
Business means those activities which are performed to earn profit and generate wealth. These activities include manufacturing of goods, trading of goods and providing services. 

So business is an economic activity, which is related with continuous and regular production and distribution of goods and services for satisfying human wants to earn profit. These business activities link an organization with the outside world. 

BUSINESS ENVIRONMENT
The term business environment means the sum total of all forces and factors which are internally and externally affecting the business.

Every business organization operates in its unique environment. Environment influences business and also gets influenced by it. A business cannot function free of interacting and influencing forces. Success of every business  depends  on how it adapts itself  to the environment  within which it functions.

FEATURES OF BUSINESS ENVIRONMENT ARE- 
Totality  of  external forces
Specific and general forces
Dynamic nature
Uncertainty
Relativity
Multi- faceted

IMPORTANCE OF BUSINESS
First mover advantage
Identification of threats
Coping with rapid changes
Improving performance
Giving direction for growth
Meeting competition
Image building
Continuous learning

VISION STATEMENT
A vision statement describes the desired future position of the company. Vision statement is where you want your business to reach at. It is a future dream for your business. 
A Vision Statement defines what business will do and why it will exist tomorrow. Vision Statement must inspire and motivate staff, create confidence, and represent business by articulating a common vision of the future.

MISSION STATEMENT
Vision is your ultimate goal, your mission is how you will get there. Your mission explains why your business exists. Mission statement must be easy to understand.

It can be crafted in the following steps:
What does your company do?
Who do you do it for?
Where do you exist?
How does it do it?
—    Why does your company do it?

TYPES OF BUSINESS ENVIRONMENT
Internal 
Internal environment is sum total of all the forces with in the business organization. Internal environment contains the owner of the business, the shareholders, the managing director, the non-managers, employees, the customers, the infrastructure of the business organization, and the culture of the organization

Components of internal environment
It includes 6 Ms i.e. 
Man (Human Resource). 
Money (Financial Factors). 
Marketing Resources. 
Machinery (Physical Assets). 
Management Structure and Nature. 
Miscellaneous Factors

External
External environment of a business organization is sum total of all entities that exists outside its boundaries and have significant influence over its growth as well as on its survival.

Types of external environment
  • Micro/Operating Environment.
  • Macro/General Environment

These online MCQ mock tests and MCQ questions includes all main concepts of the chapter (Business Environment) in CS Foundation Business Environment and Entrepreneurship computer based MCQ Exam.

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