Salient Features of Business Environment
The salient features of the business environment are given hereunder:
- Dynamic: The environment in which the business operates changes continuously because there is a wide variety of factors that exist in the environment, causing it to change its shape and character.
- Complex: There are many forces, events and conditions that constitute business environment, arising from various sources. So, it is a bit difficult to understand the relative influence of a particular factor, on the operation of the organisation.
- Uncertain: Uncertainty is an inherent characteristic of the business environment because no one can predict what is going to happen in future.
- Multi-faceted: A single change in the business environment, can be viewed differently by different observers because their perceptions vary.
- Far-reaching Impact: The survival, growth and profitability, of a business enterprise, depends largely on the environment in which it exists. A small change in the environment has a far-reaching impact on the organisation in different ways.
- Relative: The notion of a business environment is relative since it varies from one location to another.