Types of business environment

Internal environment
Primary activities Inbound logistics Operations Outbound logistics Marketing and sales Financial resources Services

 Support activities Internal power relationship Procurement Technology development Human resources Infrastructure of the firm

External environment
Macro or remote Environment 1. ECONOMIC ENVIRONMENT a. Economic systems Socialist economic systems Capitalist economic system Mixed economy

b. ECONOMIC POLICIES the government policy towards the economy as a whole Industrial Policy Fiscal policy Tax policy Public expenditure policy Foreign exchange regulation act Import export policy

Industrial licensing policy Reservation policy Income, employment and price policy MRTP Act etc.

c. ECONOMIC CONDITIONS Economic structure of a country Entrepreneurship level Human resources Foreign trade4 Innovation level Consumption level Foreign capital Welfare schemes in country Size of the markets Rate of interest and banking system

d. FINANCIAL ENVIRONMENT Money Market which provides short term monetary assets Capital Market it is the net source of long term finance for the corporate sector

2. POLITICAL ENVIRONMENT 3.NATURAL ENVIRONMENT 4. DEMOGRAPHIC ENVIRONMENT 5.SOCIO-CULTURAL ENVIRONMENT 6.TECHNOLOGICAL ENVIRONMENT 7. INTERNATIONAL ENVIRONMENT

MICRO/ OPERATING ENVIRONMENT

COMPETITIVE POSITION CUSTOMER PROFILES SUPPLIERS AND CREDITORS LABOUR FORCE PUBLIC