Business Environment Interface BBA Easy Notes-22



Business Organisation

Business Environment Interface

Business Environment Interface BBA Easy Notes-22

Business Environment Interface

  • A Business interface is a point of entrance where a business service is created and available to the environment. The functionality provided by a business role is disclosed to its environment using one or more business interfaces.
  • Both the environment and business are interrelated and interdependent on each different for their survival and growth. Both cannot- exist without each other. Business to drive successfully has to adjust to the changing environment.

Business Environment

The interfaces between business and different types of environments can be briefly described with the following point:-

1. Business and Demographic Environment

  • Business and Demographic Environment – Demography is the study of the human population concerning their age, gender, status, occupation, income, education, etc. The demographic environment differs from country to country and has significant implications for business.
  • On the other hand business firm also affect the demography pattern of a country. Due to a diversified demographic environment, a business is compelled to adopt different functions and marketing strategies.

For Example of a Business and Demographic Environment:-

  • A business undertaking various social welfare programs like health camps, awareness, literacy programs, etc
  • The business undertakes research activities to turn the potential customers into final customers concerning age, gender, income, status, qualification, etc.
  • The business firm has to adjust to the changing demographic pattern of the country.

2. Business And Economic Environment

  • The Business and economic environment of the country comprises the structure of the economic resources, level of income, economic policies, etc.
  • A business organization has to consider the various economies prevailing in the country like important policies, taxation police, etc.
  • An economic policies like liberalization, privatization, and globalization had considerable impacts on business.

3. Business And Technological Environment

  • Business and technological environment – Technology refers to the set of processes in an organization to transform raw materials or resources into finished goods and services.
  • Technology includes a tool-both machines (hard technology) and ways of thinking (soft technology).
  • It includes not only the knowledge and method but also the entrepreneurial expertise that enhances the competitiveness of a nation.
  • On the other hand, business is responsible for technological gradation as a huge amount is spent on research and development to introduce new products and concepts in the business.

4. Business And Nature Environment

  • Both the business and the natural environment are closely related and influence each other. The natural environment is also termed as a physics environment business that depends on nature for the supply of resources like raw materials water etc.
  • The field of Business and the Natural Environment (B&NE) has now reached that stage. After expanding in the early 1990s as a distinct fi eld of empirical inquiry, it has grown to include contributions from the full gamut of business disciplines. This volume is an analytical synopsis of that work, both through a summary in this introductory chapter and through the major works that are collected in this volume.

5. Business And Cultural Environment 

  • Business and Cultural Environment, Cultural refer to value, attitude, belief, moral, customs, and traditions. Cultural is a critical component of the business environment.  proper understanding of cultural dimensions is very important for product development, promotion, and human resource management.
  • The cultural environment helps to understand the customs and collective beliefs of a set of people or societies based on their culture, religion, region, nationality, language, etc. It is a Concept of Business. Business culture refers to Production development, promotion of a business, and all the business activities according to the roles of business and cultural environment.

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