Business environment can be related to the society around business carries out it's activities. Involved in any society are the people, their benefits, concepts, philosophies and all their ethics and norms. In most cases these factors turn against the survival of the busines, but in some cases they help the business to thrive. This goes along way to illustrate that environment in which business operates differs. In some, business can help the environment change , for example, in our capital cities, the environment is always quiet ; more over some business have been changed by society. For example, in the northern part of Nigeria, business on alcoholic beverages are almost on the decline. Layman A. and Card, E Gubelline as quoted by Obi (1999) said business demands on the society makes also demand on the business. These inter relationships between business and community help to sharpen the conditions prevalent in the environment.
The environment therefore can be favourable to gowth and development of a business and on the other hand, it may be hostile in the sense that it does not aid in the growth and the development of the business. Therefore the environment constraints can be defined as those forces that militate against the organization. They hinder the survival and achievement of the organizational goals effectively and efficiently. Business environments in the words of Obi (1999) is divided into two:
- Internal Environment
- External Environment
Internal environment ate the environment variables that are controllable by the business. The business. The business makes the decisions concerning them. However, the word controllable is a relative term in this context. The controllable variables include management decisions on issues such as price, product, marketing channels of distribution, advertising, motivational techniques for the workers, employment policies, organizational structure. The business has direct influence on these and can make decisions that influence their existence in the business.
External environment is made up of the controllable variables. They are not under the manipulation of the business- in that they are outside manipulate the controllable in terms of the uncontrollable so as to product result in the favour of the business. As management plans, organizes, directs, co-ordination and controls the application and the adjustments of the controllable, it must always keep the controllable I mind.
Thanks for stopping by and upvotes.
Image source
https://www.google.com/search?q=societal+constraints+on+business&client=ms-opera-mini-android&channel=new&source=lnms&tbm=isch&sa=X&ved=0ahUKEwj-l8Cc2Y30AhVZNuwKHf0TDbYQ_AUIBygC&biw=320&bih=464#