Introduction to Economic Environment

We can introduce economic environment as all the factors which affect business due to changing the economic policies, economic system and economic conditions. In big companies, there may be large number of economist whose work is to make economic policies and economic planning. They control the prices of product of company. They also control the production level and try to best to reach it on optimum level. They monitor all external economic factors and to reduce company's economic weaknesses and risks.

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Branches of Commerce

Commerce is just like a tree. Following are its main branches.

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. "

Information Technology Act 2000

Introduction of Information Technology Act 2000

Information technology is one of the important law relating to Indian cyber laws. It had passed in Indian parliament in 2000. This act is helpful to promote business with the help of internet. It also set of rules and regulations which apply on any electronic business transaction.

Due to increasing crime in cyber space, Govt. of India understood the problems of internet user and for safeguarding the interest of internet users, this act was made.

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 …

Factors of Environmental Scanning

Following are the main factors of environment scanning.

1. Events

Past events of business environment is the main factor of environment scanning. For example, if Govt. has to control food prices, it has to scan every week prices of vegetables, fruits, milk and other food items. For more simplification of price rise, Govt. will calculate wholesale price index.

Business Education

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