The environment of business means an environment in which a object work together for the cause of success of a business objective. There can be different natures of business environment. The nature of business environment can be determined by the factor like interdependence, the social, economical, cultural or political are the factors that affect each other and cause interdependence. These factors are a part of an organization and change in any of them causes a change in the nature of the business. This produces a dynamic effect to the nature of business because the values, policies and objectives are continuously changes by the change in any interdependent factor. There are several unlimited and uncontrollable factors. External factors may cause some unlimited effects on the business however they are not controllable. Government policies, legislations and advancement in technology are all external factors. Mostly the business of higher reputation has the ability to bring a change in the society. They have the ability to affect the culture and the society. The effective business inspires the life style of the people and develops innovations in fashion. There are some uncertainties that are difficult to cop up with for a business.
The business has a relationship with the environment because they create the products for the use of people. This relationship has three different views. It can be system dependent, creative rule or social responsibility. Business is totally dependent on the society because whatever a business produces has to be adoptable by the society. Even the employees, suppliers and market, they are the part of society. So the system of the business is dependent on the society. When a business is creating a product, it is the responsibility of the organization that it has to be for the profit of the people. The organization has to take care of the society along with the fulfillment of laws. The business should have the ability to tailor the demand of its consumer creatively and innovatively.
Economic development in the country is brought by an effective business. They provide an employment opportunity that serves the society and die out the condition of unemployment. In the absence of an effective organization, the rate of poverty increases in the country.
There are two types of business environment internal environment and external environment. In internal environment there are two types of activities exists, primary activities, and supportive activities. External environment is further divided into two types’ micro environment and macro environment.