What is the types of Business Environment

Components of or Types of Business Environment:
To understand business environment properly and deeply we can categories it into two categories.
The types are as follows-

1. Internal Environment
2. External Environment

• Internal Environment: It indicates such environment in which every activity and every set of activities are performed not only under the guidance but also under the control of management of an organization. Hence, under this environment the management of organization can easily bring changes in every aspect mentioned below in internal environment column. Such as a management of organization can easily bring changes in business and managerial policies because these policies are made by them, so totally in control of them. Similarly management can also bring changes in rest of aspects mentioned below in internal environment column.

• External Environment: It indicates such environment in which every activity and every set of activities are performed out side of organization and which is non-controllable in nature by the side of an organization. External Environment can also be categorized into two categorizes-

I. Micro Environment: It refers to such environment which can be managed indirectly or some to extent by the side of an organization on the basis of taking strategically decisions but even this environment is non-controllable in nature. Such as customers likes and dislikes can be managed some to extent by the side of organization on the basis of providing goods and services of better quality, with reasonable costs at the right time. But even customer’s likes and dislikes are not under the control of organization.

II. Macro Environment: It refers to such environment which cannot be even managed by the side of organization. In fact, these environments are totally above the control of organization. Hence, if any changes is made in macro environment than it will influence entire economy of a nation. Such as if any changes is made in the economic policy (like Fiscal and Monetary policy) of a nation by the government then it will influence every organizational activity entirely because no organization can control it. Thus, it is clear that these environments are totally non-controllable by any organization.