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Political Environment of Business

Political environment is the mixture of the environment of legislature, executive and judiciary. In legislature and executive of Govt. decide the different work of nation. Judiciary sees whether it is legal or illegal. It is continue changing. As a businessman you should watch it. You can see the changes in the political environment with the help of media. Media shows the updates of politics. These days, Indian corruption is on the top of politics. You can  watch and also analyze its effect on your business.

Political environment also affects business with different business laws. These laws controls all the activities of business. In India, there are lots of laws which has been made by Indian Govt. In these laws, we can add company law 1956 and Factory act 1948. For controlling stock exchanges, Govt. has made SEBI. For controlling banking business, Govt. has made RBI.

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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. "

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.