Tells you about business environment

1. Business Environment in Nepal
Presented by:
Aarohi

2. What Is Business Environment?
 Business environment means all of the internal and external factors that
affect how the company functions including employees, customers,
management, supply and demand and business regulations.

3.  Keith Davis (1986): “Business environment is the aggregate of all conditions,
events and influences that surround and effect a business.”
 V.P. Michael: “Business environment is the sum total of the environmental
factors which provide an atmosphere for business.”

4. Importance of Business Environment

5. Determining Opportunities and Threats:
 to identify Opportunities and getting the first mover
advantage.
 to identify threats and early warning signals.

6. Giving Direction for Growth:
 to opening up new opportunities of growth for the business
firms.
 to identify the areas for growth and expansion of their
activities.

7. Continuous Learning:
 Easy in dealing with business challenges.
 Managers are motivated to update their knowledge and
skills.

8. Image Building:
 by showing their sensitivity to the environment within which
they are working.

9. Meeting Competition:
 analyze the competitors’ strategies and formulate their own
strategies
 alliance with other organization for mutual gain.

10. Identifying Firm’s Strength and
Weakness:
 analyze external environment.
 to identify the individual strengths and weaknesses in view
of the technological and global developments.

11. Stability:
 Identify the impact of environmental changes,
 develop action plan to cope with changes to maintain
stability.

12. Dynamism:
 Provides information about environmental changes,
 Maintain dynamism by adapting to changes in the
environment.