Business Environment – Reference Notes|Introduction to Management (ITM)

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Business environmentBusiness Environment Unit Three
Principles of Management (POM)
Third Semester | Second year
BSc.CSIT | Tribhuvan University (TU)

Business Environment
Environment means the surrounding, external object, influences or circumstances under which someone or something exists. Business environment reflects total of all things (factors, forces, institutions) external to an organization that effects it. Generally everything in and out of business organizations that affect, influence it can be considered as business environment. Business environment consists of all components of the surroundings of a business organization, which affect or influence its operation and determine its effectiveness. The effectiveness depends upon the ability to deal and adjust with environmental forces. It encompasses the climate or set of conditions, economic, social, political or institutional in which business operations are conducted.

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