Business is an important institution in society. Be it for the supply of goods or services, creation of employment opportunities, the offer of better quality life, or contribution to the economic growth of a country, the role of business is crucial. So the first question arises in anyone’s mind is what real business is? The following definition is an attempt to provide an appropriate answer.
“A Business is nothing more than a person or group of persons properly organized to produce or distribute goods or services. The study of business is the study of activities involved in the production or distribution of goods and services-buying, selling, financing, personnel and the like”. Practically the above-said definition is true but in a theoretical sense it is incorrect. Before any activities can be considered in the business, there must exist both the goal of profit and the risk of loss. Thus, business can be accurately defined by K. Ashwathapa as “Complex field of commerce and industry in which goods and services are created and distributed in the hope of profit within a framework of laws and regulations”.
The concept of strategy has been borrowed from the military and adapted for use in business. In business, as in the military, strategy bridges the gap between policy and tactics. Together, strategy and tactics bridge the gap between ends and means. We shall discuss about business, and its major objectives like survival, stability, growth, efficiency and profitability, environmental influence to business, environment analysis, characteristics of business environment ,components of business environment, to know the relationship between the organisation and its environment, the micro and macro environment and its demographic, economic, government, legal, political, cultural, technological and global environment impact on business.