Enumerate the two categories of business environment and give the example of both

Explanation

The two types of environment of business, i.e., (1) Internal Environment, and (2) External Environment.

(1) Internal Environment:

Internal environment of business includes physical assets, technological capabilities, human, financial and marketing resources, management structure, relationship among various constituents, goods, objectives and value system prevailing.


Although business is undertaken with profit-maximization motive even then the top positions in modern corporate enterprises maintain some sense of values which usually influence the policies, practices and general internal environment of business. However, there are certain deviations, where the executives and management have been showing scant regards towards well being of the people.
(2) External Environment:
External environment of business is composed of various organisations, institutions and forces operating outside the company, which exert influence individually and collectively as well on this environment. External environment of business is broadly classified into micro environment and macro environment.


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