Professional Documents
Culture Documents
The sets of values that help the members to understand what organization stand for how it does
work, what it considers, cultural values of business forces of business and so on. It helps in direction
of activities.
2. External environment (PEST)
All the forces and condition that cannot be controlled by the business is called external
environment. . It is also known as uncontrollable factors because business cant control them. It is
located outside the business. It affects on organizational performance.
It includes:
I. Economic environment.
It indicates the condition of economy in which business organization operates. It has continuous and
great impact on business. It includes national income, production, inflation, savings, investment,
price, government activities. Business person must have constant watch on this factor.
Ii. Political or legal environment
It is defined as rules and regulations determined by the government. Business must fulfill demand
of government. There should be non violation of rules and regulation of government. Business
should avoid unfair trade and should provide essential information to the government.
Iii. Social environment.
Business must have good environment where a business can be established neatly. Business also
helps in employment opportunities generation. There should be socio cultural understanding and
application of anti pollution measures.
Iv. Technological environment:
It defines about the methods available for converting resources into product or services. It
transforms inputs into output. Inputs means material, capital, man, machine. It affects on business.
It helps to change the level of job, skill, and product and so on. There can be innovation,
development of scientific techniques which encouraged mass production and distribution.
Related Notes:
1.
2.
3.
4.
5.
6.