What are the Characteristics of Business Environment? Know Characteristics of Business Environment
Updated: Oct 18, 2019
The characteristics of business environment is indicated by the major challenges, opportunities, threat and weakness that the business comes across.
Characteristics of Business Environment - Environment is complex
Business environment principally consists of a number of factors and events conditions. These are influenced by different departmental sources in the organisation. These conditions do not exist in isolation and create entirely new set of influences which interacts with each other. It brings comprehensive influence to business environment but it is difficult to influence the organisation. All these factors have to be considered as environment analysis is complex and rigid and totally very difficult to grasp by the functional manager and top level employees in the organisation.
Characteristics of Business Environment - Environment is dynamic
Business and company environment is constantly evolving and changing in various aspects. Micro and macro environment factors are influenced in business. It impacts to change the business conditions. Dynamic environment is flexible in nature. This is caused due to change; the strategic manager can shape strategy and formulate short term and long term objectives.
Characteristics of Business Environment - Environment is multi–faceted
Strategic observer can shape and observe different characters prevalent in the environment. Strategic observer can observe a particular change or latest development in the business. It may be viewed differently by different observers in the organisation. These things are frequently seen when the development happens. All are happy to welcome it and think of it as an opportunity for the company but sometimes it can even be treated as a threat to the company.
Characteristics of Business Environment - Environment has a far reaching impact
Environment impact is an essential ingredient for strategist to study changes and take appropriate decisions at appropriate time. If the strategist neglects to take an appropriate decision at the right time, it creates an impact on the organisation. Survival, growth, profitability and development of an organisation depend critically in terms of micro and macro factors of the business environment. Environment impact brings new dimensions to the business.