Business Environment

Business Environment

Business Environment Defined

         Environment is an abstract concept. It refers to a set of forces including events, situations, phenomena, objects, organization, individuals and groups that have bearing in the organizational affairs. Environment is the aggregate of these factors which influence decisions, functions, policies and goals of the organization. The components of the environment are present both inside and outside the organization. The components lying inside the organization. The components lying inside the organization are called internal components and those outside are known a s external components.

Internal environment

• Organization missions, goals and policies
• Managerial and organizational practices and culture 
• Resource such as finance and human capital
• Working procedures
• Department structures

Organizational mission statements

An organization's mission statement describes what the organization stands for and why it exists. It explains the overall purpose of the organizations of its type.

  

A mission statement is more than words on a piece of paper; it reveals a company's philosophy, as well as its purpose. This declaration should be a living, breathing document that provides information and inspiration for the members of the organization. A mission statement should answer the questions, "What are our values?" and " what do we stand for?" This statement provides focus for an organization by rallying its members to work together to achieve its common goals. A good mission statement is precise in identifying the following intents of company :

• customers-who will be served 
• products/services- what will be produced 
• location- where the products/services will be produced 
• philosophy - what ideology will be followed