what are business environment characteristics – what is called a business environment? see the following continuation

Topic – what are business environment characteristics

A. Understanding the Business Environment

The environment may be interpreted as all elements that may be interconnected and affect one another using circumstances and activities. The environment includes physical and nonphysical elements. In the business world, physical elements such as technology, natural conditions and suppliers while non-physical elements can be in the form of community customs, economic conditions and norms.

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what are business environment characteristics

Business consists of all activities and businesses to create a profit by giving the products and services necessary for the economic system. The essence of any business venture is the exchange between the client and the seller.

From the above mentioned two definitions we are able to draw the conclusion that the knowledge of the Business Environment are factors that can affect directly or indirectly the management of the corporation or business activities.

B. Division of Business Environment

what are business environment characteristics – Organizational environments may be distinguished over external environments and internal environments. The external environment consists of factors that affect the business from beyond your boundaries of the organization, while the interior environment includes factors within the business that affect the management of the organization.

The external environment of an organization is generally distinguished over the general environment and a special environment (also called a task environment) which includes suppliers, customers, competitors, regulators, and unions. Meanwhile, the internal environment includes factors of mission vision, corporate culture, management style, organizational policy, employees, inter-divisional relationships, and informal organizations.

C. External and Internal Environmental Relations with Organizations

External environment as a source for suppliers of resources and consumers of output. How much this environment can support an organization can have a direct effect on the organization’s operations and performance. An excellent relationship with suppliers will further ensure an easy influx of needed resources and satisfied customers will support demand for items and services produced.

The interior environment directly affects the degree of capability in the act including all three subsystems in the organizational system, namely input, transformation, and output.

D. General Environment

The general environment consists of background conditions in an external environment that may have a significant impact on the operational activities of an organization. These environments include:

Economic Conditions

Namely the typical condition of the economy linked to interest rates, inflation, currency konvertibility, per capita income level, gross domestic policy, monetary and fiscal policy, tax system, population, unemployment, wage level and other related economic indicators.

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Socio-Cultural Conditions

The general condition of the prevailing social values concerning human rights, customs, norms, values, beliefs, languages, attitudes, behaviors, languages, religions, tastes, aspirations, educational tend and related social institutions.

Legal Conditions – Politics

Namely political ideology, party and political orgnization, forms of government, hokum, government laws and regulations that affect business transactions, agreements with other Countries, patents and trademarks.

Technological Conditions

That is the general condition of the development and option of technology in the surroundings, like the advancement of science.

Natural Environmental Conditions

It is a common condition of nature and physical environmental conditions.

The difference in these related factors will soon be very noticeable for organizations operating internationally. The conditions in the overall environment differ a whole lot in one Country with another. Successful managers of organizations operating internationally can understand these differences and assist the organization in making the mandatory operational adjustments.

E. Special Environment

A special environment includes organizations, groups, actual people with whom an organization must interact in order to operate and thrive. Once called a job environment, this environment differs for each organization, depending on the unique operating situation and domain of the organization.
Important elements in an organization’s specific environment include:


That is, certain groups of people and consumer organizations or customers who buy goods from organizations and or use their services.


Certain human resources, information and finances and raw materials are needed by the business to operate.


Certain organizations offer the exact same or similar goods and services to the same group of consumers or customers.

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Government agencies or representatives at the neighborhood, regional and central levels as hokum penegsk and perturan that affect the operational activities of the organization.

Trade Unions

It can be an organization that gathers workers to fight for the aspirations of its members.

F. Internal Environment

These are factors within the corporation that affect the management of operations. The influence of the inner environment on the organization may be briefly ed the following:
Vision is defined being an summary of the situation or portrait for the future (long term) an organization will go to. In the meantime, there is a record about the intent and philosophy of the business or the cause of packing an existing orgaization. Each level of management must fully know what the vision and mission of the business is.

Corporate Culture

Culture is a system of mutual values, beliefs, and habits in a organization that interacts with formal structures that produce behavioral norms within the organization. It’s the social and psychological climate of corporate ebuah, and its existence is definitely an open or open culture. In a sealed culture the sentness of cendrung is made by a advanced of management. Managers lack trust in subordinates, plenty of secrecy across the organization’s ranks, and employees aren’t compelled to be creative or take part in problem solving. Conversely, in an open culture decisions are created at a lowered amount of management, trust in subordinates or employees is considerable and employees are encouraged to be keatif and included in problem solving.

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Management style

The attitude and preferentiality of the boss affects what sort of task is carried out. The problem may be if the managerial type of the larger manager is different from the low level manager. Generally, lower-level managers have to modify to the type of the boss.


The policy sets limits as a limitation as a result of creating decisions. Policies produced by lower-level managers should be aligned with those of higher managers. Policies tend to be designed to ensure consistency used such as for instance when and how performance is assessed.


Employees vary from person to person in various ways such as for example proficiency, attitude, personal goals, and personality. Consequently, a highly effective manager’s behavior by having an employee may possibly not be effective with another employee. In extreme cases employees may differ from one another making it extremely difficult to manage as a group. In order to be effective, managers must consider differences, both individual and group.

Informal organizations

Members of the organization will encounter two types of organizations within the company, namely formal and informal.Formal organization is indicated by an information of organizational structures and job descriptions. Informal organizations are evolving relationships and patterns of human interaction within organizations which are not officially defined. Informal organizations can have a confident or negative affect the length of the business’s activities.

Relationships between units

Managers must properly understand the partnership between existing divisions or departments and must take advantage of those relationships. If the work of a division depends on another division in the flow of work, then the manager must recognize that cooperation with other divisions is urgently needed if the task is to be completed efficiently or the productivity of the division desires to be improved.

G. Environment and Competitive Advantage

In accordance with Schermerhorn (1996), management’s attention in working with complex and constantly changing external environments is increasingly predicated on the concept of competitiveness. Competitive advantage is defined as a particular advantage which allows the business to deal with market and environmental forces much better than its competitors.


No organization is immune to the influence of economic factors. More and more today, competition to look for consumers and get rare resources is getting harder and more merciless. Managers should direct companies to compete and win them, both at any given time when the economy is in recession and when the economy is growing.
Therefore today’s managers must understand and follow and be responsive to the development of the entire world economy. Corporate leaders now recognize that competitive excellence must be performed with full understanding, both on issues and opportunities from the international dimension in management.

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Socio-cultural issues

what are business environment characteristics – Any manager who covers the excellence of competitiveness must acknowledge the importance of people. This pertains to commitment and effort in using organizational resources that will determine the best degree of performance achievement. Good managers recognize that talented and diligent workers are necessary to the excellence of long-term competitiveness. A manager must make good decisions when recruiting and selecting workers from labor sources, both externally and internally.

Legal-political aspects

All efforts made by managers to pursue competitive advantage must certanly be done in ways which are in accordance with the expectations of the community, namely to uphold ethics and social responsibility, and to be within the framework of hokum and government regulations that support those expectations.
Managers will also be required to understand various laws and regulations at the district, provincial and national levels including related government agencies. Organizations operating internationally will face greater complications since the laws and regulations vary from country to country.

Technology aspects

Today, we live and work in a century of information technology. Particularly for managers, the usage of technology and information is really a key theme of daily life. Computer and information technology continues to expand its influence on manufacturing and service processes. People feel that the excellence of competitiveness through technology would have been a key driver for the corporation in the next few years.
It should be acknowledged that the rapid ness of technology brings about a selection of changes that continue in the wider community. As managers, employees and consumers we should strive to continue to follow and understand every step of development and change.

Natural environment

Environmental issues rank second highest on social priorities after education. The outcome of the survey reveal that the business enterprise world must take a dynamic role in aiding to resolve the environmental problems which can be now facing the planet community. Business leaders and pogresive governments recognize that the large number of the world’s industries depend on natural resources for the base of the products it produces. They understand the huge prospect of green marketing relating to the sale of green products.


The business enterprise environment has a huge impact on the company’s operations and organizational management. For a manager this becomes both the opportunity and a challenge. The ever-changing environment requires management and organizations to be responsive and progressive.
So widespread and kopleksnya the environmental surroundings faced with a company demands professionalism from every human resource that exists in the company. Managers must always keep up with the flow of modernity, mastering technology and information in order to gain a competitive edge.
Organizations that not wish to constantly learn gradually will experience setbacks and deaths from losing competition meets the demands of the market.

That is expanation about what are business environment characteristics, hopefully useful

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