Information on Business Environment Subject for business administration courses, Indian laws ,Economy , technology, WTO, fiscal policies , Indian banking, ...
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What are Business Features?
Following are the main business features:-
1. Creation of Value
Main feature of business that it creates the value. Value means anything which increases the quality of existing product. For example, a retailer buys the goods at large quantity. He converts his large quantity in small packs. Now, small consumer can buy it. Retailer is businessman. He increases the value of his product by his efforts and makes useful for his small consumers.
2. Selling of Idea
It is the second feature of business that businessman sells the idea.For example, all are selling same books but some businessmen are ideal because they have idea to sell best book to the buyer who needs it. They bring the idea about how to sell the books. For example, educational community wants to read educational books. Businessman will send the offer to buy new and updated educational books. They make a separate set for separate community
3. Practice of Business
Like any other practice, business is also based on practice. A businessman opens his shop daily till his death. He learns everyday, how to do business. One day, he becomes perfect in his business.
4. Taking of Risk
It is the one of important feature of business that businessman always takes the risk. He buys the goods. To buy the goods is the main risk because before selling it may be useless. It may be under the fire. Any mishappening can happen with his bought goods. He does not fear from taking any business. He follows the more risk and more profit principle.
5. Aim of Earning Profit
It is the feature of business that businessman always wants to earn profit. For earning profit, he works hard. For buying goods, he can go anywhere. He does his best for selling goods to customer. He develops his skill of better salesman.
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 …
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.
For finding business's available opportunities and risks, environmental appraisal is needed. Environmental appraisal means to analyze all the factors of business environments. Following are the main stages involved in environment appraisal.