What are the 6 Business environments?

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What are the 6 Business environments?

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Political Economic Sociocultural Technological Environmental Legal Political environment includes factors like the nature of government policies particularly those related to taxation, industrial relations, regulation of internal business and industry, and foreign trad regulations. Economic factors, as the name implies related to the general condition of the economy within which a business operates and conducts business. It will include factors like GNP, economic growth rate, interest rates, inflation rate, moneys supply, and unemployment rates. Sociocultural factor cover the nature of the life style, culture, attitude and other such common factors that influence an describe the behavioral characteristics typical of the people. It will include factors like demographic profile of the people, culture, and life style. Technological dimension covers the nature of technology available and used by an economy or industry in general. It also covers the extent to which development in technologies are likely to take place. Environmental factor refers to the physical or geographical environment affecting the business. It also includes the considerations like environmental pollution. Legal dimension describes the framework of legislation impacting the business. The kind of laws more important to business relate to areas like monopolies and consumer protection, employment and industrial relations, health and safety, and joint stock companies.

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