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Social Environment of Business

Meaning of Social Environment

Social or Societary environment of business means all factors which affects business socially . Every business works in a society , so societies ' different factors like family , educational institutions and religion affects
business .

Main elements Of Societies and its effect on Business

1. Family :- Family is basic part of society from the birth of a person and upto death , he lives in family so personal decision of buying and selling of goods are affects from family . In the culture of a family , it may happen that parent does not allow to use any product , then sale of such product will decrease , so businessman must analyze different families needs . Many occasion of family like marriage of any family member , can increase the demand of goods .
2. Educational institutions :- Educational institutions are also main part of societies . They provide good knowledge , education , awareness , thinking what should students buy or not to buy . Suppose if a student is habitual to drink the tea and if his teacher advice him that this is harmful to his health after his guidance students can avoid to drink tea after this the sale of tea will decrease .
3. Religion :- Like family and education institution , religion is also effects the business socially . Religion means the system in which group of persons trust in God . They believe that there is one supernatural power in this earth and its name is God . They gives many name like Ek onkar sat nam , om and many more etc. Different religions have different principles , rules and regulations in which they sacrifice to use some products and to eat some food , in Hindu religion , they never use leather products . They affects the sale of leather industries . So, businessman must analyse the targeted audience and after listening their religious thoughts , he should produce the goods .


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Objective of Business Environment

Following are main objectives of business environment:
1. Knowledge of Information 
By studying the business environment, we can know the changes of business. This information is very useful for our business. Every businessman should aware current environment of business. With this, he can think the future of his business in such environment. 
2. Basis of Decisions 
One of main objective of the study of business environment that it can provide all the information which is needed for taking good decisions. Suppose, you completed your internal business environment study. With this study, you can take decision relating to purchase, sale, salary and price because you know your competitor, you know your suppliers and you know your customers. 
3. Helpful in making of Policies 
For making good business policies, we need to know and scan business through business environment. 
4. Technological Planning 
Today, technology is changing very fastly. 3 years ago, I have to search software for downloading …

Limitation of Business Environment Analysis

Following are main limitation of business environment analysis:

1. Unexpected and Unanticipated Events 

We can not tell unexpected and unanticipated events in business environment analysis. Sometime, business has to face unexpected happenings. So, there will no benefit of business environment in these cases.

2. No sufficient Guarantee

Business environment analyst does not give any guarantee whether all events will happen as per estimation in business environment.

3. Uncritical Faith 

Sometime data may be incorrect. So, decisions on basis of these analysis may be risky for business.

4. To much information

Sometime too much information relating to business environment analysis will create the doubt in businessmen.

Technological Environment

Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "